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Hawaiian Electric Industries Reports First Quarter 2013 Earnings & Declares Dividend



 Hawaiian Electric Industries Reports First Quarter 2013 Earnings & Declares
                                   Dividend

Earnings Per Share of $0.34

Hawaiian Electric Company Invests Over $60 Million in Local Infrastructure

American Savings Bank Continues to Deliver Solid Results

Board Declares Dividend of $0.31 Per Share

PR Newswire

HONOLULU, May 8, 2013

HONOLULU, May 8, 2013 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (NYSE
- HE) (HEI) today reported consolidated net income for common stock for the
first quarter of 2013 of $33.7 million, or $0.34 diluted earnings per share
(EPS), compared to $38.3 million, or $0.40 diluted EPS for the first quarter
of 2012. 

"We're off to a solid start in 2013 with financial results consistent with our
expectations and significant progress on our strategies across our companies.
We successfully completed a $180 million common stock offering which allows us
to fund the largest capital plan in our utilities' history over the next two
years, benefitting customers with a stronger and more modern electric grid and
lower-cost renewable energy.  In the first quarter, our utilities invested
over $60 million – about 2.5x their earnings – in local infrastructure. 
American Savings Bank delivered strong loan growth to help offset the impact
of the low interest rate environment and gained market share in its mortgage
banking business, becoming one of the top ranking lenders in the state for the
quarter," said Constance H. Lau, HEI president and chief executive officer.

"Our companies are committed to reducing Hawaii's dependence on oil and are
constantly seeking ways to increase our use of lower-cost renewable energy. 
In 2012, we reached a record 13.9% of energy needs from renewable generation
and are on track to exceed the next clean energy goal of 15% in 2015," added
Lau.  Since the end of 2010, over 80% or close to $50 of the $60 increase in
the typical Oahu customer's bill is due to higher oil prices. 

HAWAIIAN ELECTRIC COMPANY CONTINUES TO INVEST IN CLEAN ENERGY AND RELIABILITY

Hawaiian Electric Company's^1 net income for the first quarter of 2013 was
$24.4 million compared  to $27.3 million in the first quarter of 2012.   

Overall, the primary variances impacting net income for the quarter were (on
an after-tax basis):

  o $5 million higher operations and maintenance (O&M) expenses^2; and
  o $1 million higher depreciation expense.
    These were partially offset by (after-tax):
  o $2 million recovery of additional costs for reliability and clean energy
    investments, net of lower heat rate earnings.

Operations and maintenance (O&M) expenses^2 (after-tax) were $5 million higher
for the first quarter of 2013 compared to the first quarter of the prior year
largely due to timing.  In 2012, the rate of O&M expense in the first quarter
was lower than the rest of the year, whereas, in 2013, management expects O&M
to be more evenly distributed throughout the year.  In the quarter, O&M
reflects higher customer service expenses as such costs received deferral
treatment in most of the first half of 2012.  Management continues to expect
2013 O&M expenses to be flat to up 1% compared to 2012 as work continues to
moderate O&M spending in targeted areas.

^1 Hawaiian Electric Company, unless otherwise defined, refers to the three
utilities, Hawaiian Electric Company, Inc. on Oahu, Maui Electric Company,
Limited, and Hawaii Electric Light Company, Inc.

^2 Excludes expenses covered by surcharges or by third parties. In the first
quarter of 2013 and 2012, these expenses were $2 million and $1 million,
respectively.

AMERICAN SAVINGS BANK CONTINUES TO DELIVER SOLID PERFORMANCE

American Savings Bank's (American) net income for the first quarter of 2013
was $14.2 million compared with $14.4 million in the fourth, or linked,
quarter of 2012 and $15.9 million in the first quarter of 2012, which included
$1 million for a one-time release of tax-related reserves.  First quarter 2013
net income was consistent with the linked quarter.  Net interest income was
flat as the 6.9% annualized loan growth this quarter helped offset lower
financing margins.  Noninterest income was lower, largely due to lower gains
on sales of residential mortgage loans, but offset by lower provision for loan
losses and lower noninterest expense.

Compared to the first quarter of 2012, net income declined by $1.7 million
including the effect of the $1 million release of tax reserves mentioned
previously.  The remaining $0.7 million decline was largely driven by higher
noninterest expense, primarily attributable to targeted staffing increases to
support increased business volumes and information technology and risk
management capabilities, and lower net interest income due to declining asset
yields.  These were partially offset by the favorable effect of loan growth,
higher noninterest income from higher gains on sales of new residential
mortgages originated in the quarter and lower provision for loan losses, as
the credit quality of the bank's loan portfolio improved along with the
improvement in Hawaii's economy.

Overall, American achieved solid profitability in the first quarter 2013 with
a return on average equity of 11.3% and a return on average assets of 1.12%. 

Also refer to the American news release issued on April 30, 2013.

HOLDING AND OTHER COMPANIES

The holding and other companies' net losses were $4.9 million in the first
quarter of 2013, consistent with the first quarter of 2012.

BOARD DECLARES QUARTERLY DIVIDEND

On May 7, 2013, the board of directors maintained HEI's quarterly cash
dividend of 31 cents per share, payable on June 12, 2013, to shareholders of
record at the close of business on May 22, 2013 (ex-dividend date is May 20,
2013).  The dividend is equivalent to an annual rate of $1.24 per share.

Dividends have been paid continuously since 1901.  At the indicated annual
dividend rate and the closing share price on May 7, 2013 of $28.10, HEI's
yield is 4.4%.

WEBCAST AND CONFERENCE CALL

Hawaiian Electric Industries, Inc. will conduct a webcast and conference call
to review its first quarter 2013 earnings on Wednesday, May 8, 2013, at 7:00
a.m. Hawaii time (1:00 p.m. Eastern time).  The event can be accessed through
HEI's website at www.hei.com or by dialing (800) 706-7741, passcode:  55241897
for the teleconference call.  The presentation for the webcast will be on
HEI's website under the headings "Investor Relations," "News & Events" and
"Presentations & Webcasts."  HEI and Hawaiian Electric Company, Inc. (HECO)
intend to continue to use HEI's website, www.hei.com, as a means of disclosing
material information, as well as other important information.  Such
disclosures will be included on HEI's website in the Investor Relations
section.  Accordingly, investors should routinely monitor such portions of
HEI's website, in addition to following HEI's, HECO's and American's press
releases, HEI's and HECO's Securities and Exchange Commission (SEC) filings
and HEI's public conference calls and webcasts.  Also, at the Investor
Relations section of HEI's website, investors may sign up to receive e-mail
alerts (based on each investor's selected preferences).  The information on
HEI's website is not incorporated by reference in this document or in HEI's
and HECO's SEC filings unless, and except to the extent, specifically
incorporated by reference.  Investors may also wish to refer to the Public
Utilities Commission of the State of Hawaii (PUC) website at
dms.puc.hawaii.gov/dms in order to review documents filed with and issued by
the PUC.  No information on the PUC website is incorporated by reference in
this document or in HEI's and HECO's SEC filings.

An online replay of the webcast will be available at the same website
beginning about two hours after the event.  Replays of the teleconference call
will also be available approximately two hours after the event through May 22,
2013, by dialing (888) 286-8010, passcode: 75540244.

HEI supplies power to approximately 450,000 customers or 95% of Hawaii's
population through its electric utilities, HECO, Hawaii Electric Light
Company, Inc. and Maui Electric Company, Limited and provides a wide array of
banking and other financial services to consumers and businesses through
American, one of Hawaii's largest financial institutions.

FORWARD-LOOKING STATEMENTS

This release may contain "forward-looking statements," which include
statements that are predictive in nature, depend upon or refer to future
events or conditions, and usually include words such as "expects,"
"anticipates," "intends," "plans," "believes," "predicts," "estimates" or
similar expressions.  In addition, any statements concerning future financial
performance, ongoing business strategies or prospects or possible future
actions are also forward-looking statements.  Forward-looking statements are
based on current expectations and projections about future events and are
subject to risks, uncertainties and the accuracy of assumptions concerning HEI
and its subsidiaries, the performance of the industries in which they do
business and economic and market factors, among other things.  These
forward-looking statements are not guarantees of future performance.

Forward-looking statements in this release should be read in conjunction with
the "Forward-Looking Statements" and "Risk Factors" discussions (which are
incorporated by reference herein) set forth in HEI's Annual Report on Form
10-K for the year ended December 31, 2012 and HEI's subsequent periodic
reports that discuss important factors that could cause HEI's results to
differ materially from those anticipated in such statements.  These
forward-looking statements speak only as of the date of the report,
presentation or filing in which they are made.  Except to the extent required
by the federal securities laws, HEI, HECO, American and their subsidiaries
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended March 31                               2013       2012
(in thousands, except per share amounts) 
Revenues
Electric utility                                          $ 719,273  $ 749,610
Bank                                                      64,756     65,252
Other                                                     35         (2)
    Total revenues                                        784,064    814,860
Expenses
Electric utility                                          666,320    692,356
Bank                                                      43,005     42,340
Other                                                     4,082      4,348
    Total expenses                                        713,407    739,044
Operating income (loss)
Electric utility                                          52,953     57,254
Bank                                                      21,751     22,912
Other                                                     (4,047)    (4,350)
     Total operating income                               70,657     75,816
Interest expense–other than on deposit liabilities 
   and other bank borrowings                              (19,788)   (18,539)
Allowance for borrowed funds used during construction     730        870
Allowance for equity funds used during construction       1,215      1,940
Income before income taxes                                52,814     60,087
Income taxes                                              18,662     21,298
Net income                                                34,152     38,789
Preferred stock dividends of subsidiaries                 473        473
Net income for common stock                               $ 33,679   $ 38,316
Basic earnings per common share                           $ 0.34     $ 0.40
Diluted earnings per common share                         $ 0.34     $ 0.40
Dividends per common share                                $ 0.31     $ 0.31
Weighted-average number of common shares outstanding      98,135     96,167
Adjusted weighted-average shares                          98,540     96,561
Net income (loss) for common stock  by segment
   Electric utility                                       $ 24,429   $ 27,300
   Bank                                                   14,155     15,877
   Other                                                  (4,905)    (4,861)
Net income for common stock                               $ 33,679   $ 38,316
Comprehensive income attributable to Hawaiian Electric    $ 33,618   $ 38,627
Industries, Inc.
Return on average common equity (twelve months ended)^1   8.5%       9.7%

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for
the year ended December 31, 2012 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2013 (when filed), as updated by SEC Forms
8-K. Results of operations for interim periods are not necessarily indicative
of results to be expected for future interim periods or the full year.
^1On a core basis (non-GAAP), 2013 and 2012 return on average common equity
(twelve months ended March 31) were 10.0% and 10.1%, respectively.  See
reconciliation of GAAP to non-GAAP measures.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                     March 31,    December 31,
(dollars in thousands)                               2013         2012
Assets
Cash and cash equivalents                            $ 262,708    $ 219,662
Accounts receivable and unbilled revenues, net       348,487      362,823
Available-for-sale investment and mortgage-related   659,400      671,358
securities
Investment in stock of Federal Home Loan Bank of     95,152       96,022
Seattle 
Loans receivable held for investment, net            3,803,002    3,737,233
Loans held for sale, at lower of cost or fair value  5,351        26,005
Property, plant and equipment, net of accumulated
depreciation of
      $2,142,040 in 2013 and $2,125,286 in 2012      3,640,308    3,594,829
Regulatory assets                                    874,151      864,596
Other                                                527,820      494,414
Goodwill                                             82,190       82,190
     Total assets                                    $ 10,298,569 $ 10,149,132
Liabilities and shareholders' equity
Liabilities
Accounts payable                                     $ 253,096    $ 212,379
Interest and dividends payable                       26,358       26,258
Deposit liabilities                                  4,312,620    4,229,916
Short-term borrowings—other than bank                133,937      83,693
Other bank borrowings                                193,233      195,926
Long-term debt, net—other than bank                  1,422,875    1,422,872
Deferred income taxes                                459,249      439,329
Regulatory liabilities                               325,527      322,074
Contributions in aid of construction                 415,795      405,520
Retirement benefits liability                        643,104      656,394
Other                                                471,217      526,613
     Total liabilities                               8,657,011    8,520,974
Preferred stock of subsidiaries - not subject to     34,293       34,293
mandatory redemption
Shareholders' equity
Preferred stock, no par value, authorized 10,000,000 -            -
shares; issued:  none
Common stock, no par value, authorized 200,000,000
shares; issued and outstanding: 98,471,405 shares in 1,413,700    1,403,484
2013 and 97,928,403 shares in 2012
Retained earnings                                    220,049      216,804
Accumulated other comprehensive loss, net of tax     (26,484)     (26,423)
benefits
     Total shareholders' equity                      1,607,265    1,593,865
     Total liabilities and shareholders' equity      $ 10,298,569 $ 10,149,132

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for
the year ended December 31, 2012 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2013 (when filed), as updated by SEC Forms
8-K. Results of operations for interim periods are not necessarily indicative
of results to be expected for future interim periods or the full year.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended March 31                                2013      2012
(in thousands)
Cash flows from operating activities
Net income                                                 $ 34,152  $ 38,789
Adjustments to reconcile net income to net cash provided
by (used in) operating activities
      Depreciation of property, plant and equipment        39,726    37,911
      Other amortization                                   935       1,419
      Provision for loan losses                            1,858     3,546
      Loans receivable originated and purchased, held for  (79,224)  (89,087)
sale
      Proceeds from sale of loans receivable, held for     102,254   85,252
sale
      Change in deferred income taxes                      19,967    21,260
      Change in excess tax benefits from share-based       (414)     (44)
payment arrangements
      Allowance for equity funds used during construction  (1,215)   (1,940)
      Changes in assets and liabilities
           Decrease in accounts receivable and unbilled    14,335    37,562
revenues, net
           Increase in fuel oil stock                      (29,272)  (14,458)
           Increase in regulatory assets                   (17,746)  (13,948)
           Increase (decrease) in accounts, interest and   38,148    (36,991)
dividends payable
           Change in prepaid and accrued income taxes and  (50,933)  (41,126)
utility revenue taxes
           Contributions to defined benefit pension and    (21,476)  (26,815)
other postretirement benefit plans
           Change in other assets and liabilities          (2,776)   (17,046)
Net cash provided by (used in) operating activities        48,319    (15,716)
Cash flows from investing activities
Available-for-sale investment and mortgage-related         (26,705)  (53,931)
securities purchased
Principal repayments on available-for-sale investment and  36,504    46,355
mortgage-related securities
Net increase in loans held for investment                  (66,934)  (34,212)
Proceeds from sale of real estate acquired in settlement   3,046     3,371
of loans
Capital expenditures                                       (71,041)  (65,300)
Contributions in aid of construction                       11,710    22,855
Other                                                      869       -
Net cash used in investing activities                      (112,551) (80,862)
Cash flows from financing activities
Net increase in deposit liabilities                        82,704    55,172
Net increase in short-term borrowings with original        50,244    87,467
maturities of three months or less
Net decrease in retail repurchase agreements               (2,680)   (379)
Proceeds from issuance of long-term debt                   50,000    -
Repayment of long-term debt                                (50,000)  (57,500)
Change in excess tax benefits from share-based payment     414       44
arrangements
Net proceeds from issuance of common stock                 4,703     5,940
Common stock dividends                                     (24,394)  (23,855)
Preferred stock dividends of subsidiaries                  (473)     (473)
Other                                                      (3,240)   (3,757)
Net cash provided by financing activities                  107,278   62,659
Net increase (decrease) in cash and cash equivalents       43,046    (33,919)
Cash and cash equivalents, beginning of period             219,662   270,265
Cash and cash equivalents, end of period                   $ 262,708 $ 236,346

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for
the year ended December 31, 2012 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2013 (when filed), as updated by SEC Forms
8-K. Results of operations for interim periods are not necessarily indicative
of results to be expected for future interim periods or the full year.

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended March 31                             2013        2012
(dollars in thousands, except per barrel amounts)
Operating revenues                                      $  716,197  $ 747,938
Operating expenses
Fuel oil                                                305,100     327,839
Purchased power                                         153,364     164,789
Other operation                                         71,423      61,849
Maintenance                                             29,702      30,038
Depreciation                                            38,280      36,482
Taxes, other than income taxes                          67,687      70,995
Income taxes                                            14,095      17,365
     Total operating expenses                           679,651     709,357
Operating income                                        36,546      38,581
Other income 
Allowance for equity funds used during construction     1,215       1,940
Other, net                                              2,312       1,309
Income tax expense                                      (299)       (44)
     Total other income                                 3,228       3,205
Interest and other charges
Interest on long-term debt                              14,614      14,383
Amortization of net bond premium and expense            647         745
Other interest charges (credits)                        315         (271)
Allowance for borrowed funds used during construction   (730)       (870)
     Total interest and other charges                   14,846      13,987
Net income                                              24,928      27,799
Preferred stock dividends of subsidiaries               229         229
Net income attributable to HECO                         24,699      27,570
Preferred stock dividends of HECO                       270         270
Net income for common stock                             $  24,429   $ 27,300
Comprehensive income attributable to HECO               $  24,447   $ 27,377
OTHER ELECTRIC UTILITY INFORMATION
Kilowatthour sales (millions)
   HECO                                                 1,591       1,696
   HELCO                                                263         271
   MECO                                                 269         284
                                                        2,123       2,251
Wet-bulb temperature (Oahu average; degrees Fahrenheit) 66.0        67.2
Cooling degree days (Oahu)                              789         861
Average fuel oil cost per barrel                        $  130.83   $ 134.37
                                                         Twelve months ended 
                                                        March 31
Return on average common equity (%) (simple average)^1  2013        2012
   HECO                                                 6.97        7.71
   HELCO                                                5.07        9.58
   MECO                                                 7.41        6.42
   HECO Consolidated                                    6.68        7.87

This information should be read in conjunction with the consolidated financial
statements and the notes thereto incorporated by reference in HECO's Annual
Report on SEC Form 10-K for the year ended December 31, 2012 and the
consolidated financial statements and the notes thereto in HECO's Quarterly
Report on SEC Form 10-Q for the quarter ended March 31, 2013 (when filed), as
updated by SEC Forms 8-K. Results of operations for interim periods are not
necessarily indicative of results to be expected for future interim periods or
the full year.

 

^1On a core basis (non-GAAP), the 2013 and 2012 return on average common
equity (twelve months ended March 31) were 8.9% and 8.4%, respectively for
HECO;  6.3% and 9.6%, respectively for HELCO; 8.8% and 6.4%, respectively for
MECO and 8.4% and 8.3% respectively, for HECO Consolidated.  See
reconciliation of GAAP to non-GAAP measures.

Hawaiian Electric Company, Inc. (HECO) and
Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
                                                      March 31,   December 31,
(dollars in thousands, except par value)              2013        2012
Assets
Utility plant, at cost
Land                                                  $ 51,598    $  51,568
Plant and equipment                                   5,427,933   5,364,400
Less accumulated depreciation                         (2,062,810) (2,040,789)
Construction in progress                              153,669     151,378
     Net utility plant                                3,570,390   3,526,557
Current assets
Cash and cash equivalents                             36,940      17,159
Customer accounts receivable, net                     194,457     210,779
Accrued unbilled revenues, net                        135,615     134,298
Other accounts receivable, net                        5,795       28,176
Fuel oil stock, at average cost                       190,691     161,419
Materials and supplies, at average cost               54,430      51,085
Prepayments and other                                 32,255      32,865
Regulatory assets                                     61,804      51,267
     Total current assets                             711,987     687,048
Other long-term assets
Regulatory assets                                     812,347     813,329
Unamortized debt expense                              10,245      10,554
Other                                                 69,266      71,305
     Total other long-term assets                     891,858     895,188
          Total assets                                $ 5,174,235 $  5,108,793
Capitalization and liabilities
Capitalization
Common stock, $6 2/3 par value, authorized 50,000,000
shares; outstanding 
    14,665,264 in 2013 and 2012                       $ 97,788    $  97,788
Premium on capital stock                              468,045     468,045
Retained earnings                                     911,632     907,273
Accumulated other comprehensive loss, net of tax      (952)       (970)
benefits
     Common stock equity                              1,476,513   1,472,136
Cumulative preferred stock – not subject to mandatory 34,293      34,293
redemption
Long-term debt, net                                   1,147,875   1,147,872
     Total capitalization                             2,658,681   2,654,301
Current liabilities
Short-term borrowings from nonaffiliates              43,052      -
Accounts payable                                      228,426     186,824
Interest and preferred dividends payable              21,693      21,092
Taxes accrued                                         199,350     251,066
Other                                                 67,930      62,879
     Total current liabilities                        560,451     521,861
Deferred credits and other liabilities
Deferred income taxes                                 435,598     417,611
Regulatory liabilities                                325,527     322,074
Unamortized tax credits                               67,939      66,584
Retirement benefits liability                         611,678     620,205
Other                                                 98,566      100,637
     Total deferred credits and other liabilities     1,539,308   1,527,111
Contributions in aid of construction                  415,795     405,520
          Total capitalization and liabilities        $ 5,174,235 $  5,108,793

This information should be read in conjunction with the consolidated financial
statements and the notes thereto incorporated by reference in HECO's Annual
Report on SEC Form 10-K for the year ended December 31, 2012 and the
consolidated financial statements and the notes thereto in HECO's Quarterly
Report on SEC Form 10-Q for the quarter ended March 31, 2013 (when filed), as
updated by SEC Forms 8-K. Results of operations for interim periods are not
necessarily indicative of results to be expected for future interim periods or
the full year.

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended March 31                                  2013     2012
(in thousands)
Cash flows from operating activities
Net income                                                   $ 24,928 $ 27,799
Adjustments to reconcile net income to net cash provided by
(used in) operating activities
      Depreciation of property, plant and equipment          38,280   36,482
      Other amortization                                     957      1,561
      Change in deferred income taxes                        17,975   20,061
      Change in tax credits, net                             1,382    1,356
      Allowance for equity funds used during construction    (1,215)  (1,940)
      Changes in assets and liabilities
           Decrease in accounts receivable                   38,703   25,001
           Decrease (increase) in accrued unbilled revenues  (1,317)  11,184
           Increase in fuel oil stock                        (29,272) (14,458)
           Increase in materials and supplies                (3,345)  (3,561)
           Increase in regulatory assets                     (17,746) (13,948)
           Increase (decrease) in accounts payable           38,934   (33,174)
           Change in prepaid and accrued income taxes and    (53,666) (44,561)
utility revenue taxes
           Contributions to defined benefit pension and      (21,010) (26,183)
other postretirement benefit plans
           Change in other assets and liabilities            19,913   3,444
Net cash provided by (used in) operating activities          53,501   (10,937)
Cash flows from investing activities
Capital expenditures                                         (67,915) (63,436)
Contributions in aid of construction                         11,710   22,855
Net cash used in investing activities                        (56,205) (40,581)
Cash flows from financing activities
Common stock dividends                                       (20,070) (18,261)
Preferred stock dividends of HECO and subsidiaries           (499)    (499)
Repayment of long-term debt                                  -        (57,500)
Net increase in short-term borrowings from nonaffiliates
and 
     affiliate with original maturities of three months or   43,052   84,942
less
Other                                                        2        (120)
Net cash provided by financing activities                    22,485   8,562
Net increase (decrease) in cash and cash equivalents         19,781   (42,956)
Cash and cash equivalents, beginning of period               17,159   48,806
Cash and cash equivalents, end of period                     $ 36,940 $ 5,850

This information should be read in conjunction with the consolidated financial
statements and the notes thereto incorporated by reference in HECO's Annual
Report on SEC Form 10-K for the year ended December 31, 2012 and the
consolidated financial statements and the notes thereto in HECO's Quarterly
Report on SEC Form 10-Q for the quarter ended March 31, 2013 (when filed), as
updated by SEC Forms 8-K. Results of operations for interim periods are not
necessarily indicative of results to be expected for future interim periods or
the full year.

American Savings Bank, F.S.B.
STATEMENTS OF INCOME DATA
(Unaudited)                              Three months ended
                                         March 31,   December 31,   March 31, 
(in thousands)                           2013        2012           2012
Interest income
Interest and fees on loans               $  42,603   $    42,816    $  44,888
Interest on investment and               3,464       3,288          3,805
mortgage-related securities
     Total interest income               46,067      46,104         48,693
Interest expense
Interest on deposit liabilities          1,312       1,408          1,779
Interest on other borrowings             1,164       1,193          1,261
     Total interest expense              2,476       2,601          3,040
Net interest income                      43,591      43,503         45,653
Provision for loan losses                1,858       3,379          3,546
Net interest income after provision      41,733      40,124         42,107
for loan losses
Noninterest income
Fees from other financial services       7,643       8,887          7,337
Fee income on deposit liabilities        4,314       4,648          4,278
Fee income on other financial            1,794       1,836          1,549
products
Gain on sale of loans                    3,346       6,331          2,035
Other income                             1,592       1,164          1,360
     Total noninterest income            18,689      22,866         16,559
Noninterest expense
Compensation and employee benefits       20,088      19,953         18,646
Occupancy                                4,123       4,313          4,225
Data processing                          2,987       2,854          2,111
Services                                 2,103       2,800          1,783
Equipment                                1,774       1,806          1,730
Other expense                            7,595       9,207          6,707
     Total noninterest expense           38,670      40,933         35,202
Income before income taxes               21,752      22,057         23,464
Income taxes                             7,597       7,694          7,587
Net income                               $  14,155   $    14,363    $  15,877
Comprehensive income                     $  15,484   $    5,740     $  15,899
OTHER BANK INFORMATION (annualized %, except as of
period end)
Return on average assets                 1.12        1.15           1.29
Return on average equity                 11.28       11.29          12.87
Return on average tangible common        13.49       13.47          15.44
equity
Net interest margin                      3.78        3.81           4.04
Net charge-offs to average loans         0.12        0.13           0.28
outstanding 
Efficiency ratio                         61          61             56
As of period end
Nonperforming assets to loans            1.89        1.87           2.02
outstanding and real estate owned *
Allowance for loan losses to loans       1.11        1.11           1.05
outstanding 
Tier-1 leverage ratio *                  9.1         9.1            9.1
Total risk-based capital ratio *         12.8        12.8           12.9
Tangible common equity to total          8.38        8.39           8.46
assets
Dividend paid to HEI (via ASHI) ($ in    10          15             10
millions) 
*  Regulatory basis

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for
the year ended December 31, 2012 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2013 (when filed), as updated by SEC Forms
8-K. Results of operations for interim periods are not necessarily indicative
of results to be expected for future interim periods or the full year.

American Savings Bank, F.S.B. 
BALANCE SHEETS DATA
(Unaudited)
                                                      March 31,   December 31,
(in thousands)                                        2013        2012
Assets
Cash and cash equivalents                             $ 224,870   $  184,430
Available-for-sale investment and mortgage-related    659,400     671,358
securities
Investment in stock of Federal Home Loan Bank of      95,152      96,022
Seattle
Loans receivable held for investment                  3,845,732   3,779,218
   Allowance for loan losses                          (42,730)    (41,985)
      Loans receivable held for investment, net       3,803,002   3,737,233
Loans held for sale, at lower of cost or fair value   5,351       26,005
Other                                                 246,420     244,435
Goodwill                                              82,190      82,190
     Total assets                                     $ 5,116,385 $  5,041,673
Liabilities and shareholder's equity
Deposit liabilities–noninterest-bearing               $ 1,223,921 $  1,164,308
Deposit liabilities–interest-bearing                  3,088,699   3,065,608
Other borrowings                                      193,233     195,926
Other                                                 106,337     117,752
     Total liabilities                                4,612,190   4,543,594
Common stock                                          334,344     333,712
Retained earnings                                     183,918     179,763
Accumulated other comprehensive loss, net of tax      (14,067)    (15,396)
benefits
     Total shareholder's equity                       504,195     498,079
     Total liabilities and shareholder's equity       $ 5,116,385 $  5,041,673

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in HEI's Annual Report on SEC Form 10-K for
the year ended December 31, 2012 and HEI's Quarterly Report on SEC Form 10-Q
for the quarter ended March 31, 2013 (when filed), as updated by SEC Forms
8-K. Results of operations for interim periods are not necessarily indicative
of results to be expected for future interim periods or the full year.

 

EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP MEASURES
HEI and HECO management use certain non-GAAP measures to evaluate the
performance of the utility. Management believes these non-GAAP measures
provide useful information and are a better indicator of the utility's core
operating activities. Core earnings as presented here may not be comparable to
similarly titled measures used by other companies. The accompanying tables
provide a reconciliation of reported GAAP^1 earnings to non-GAAP core earnings
for both the utility and HEI consolidated and the corresponding adjusted
return on average common equity (ROACE).

The reconciling adjustments from GAAP earnings to core earnings are limited to
the settlement charges for the partial write-off of utility assets in 2012 and
2011. For more information on the settlement charge recorded in 2012, see the
Form 8-K filed on March 20, 2013.

Management does not consider these items to be representative of the company's
fundamental core earnings.

 

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(Unaudited)
                                                Net Income
                                                Twelve months ended
                                                March 31,
(in millions)                                   2013               2012
GAAP (as reported)                              $            134.0 $          
                                                                    148.1
Excluding special items (after-tax):
Settlement agreement for the partial writedown  24.4               -
of certain utility assets
Settlement agreement for the partial writedown
of the East Oahu Transmission Project (EOTP)    -                  5.7
Phase I costs
Non-GAAP (core)                                 $            158.5 $          
                                                                    153.8
Note:  Columns may not foot due to rounding
                                                Twelve months ended
                                                March 31,
Other measures:                                 2013               2012
Return on average common equity (ROACE) (simple average):
Based on GAAP                                   8.5%               9.7%
Based on non-GAAP (core)^2                      10.0%              10.1%

^1U.S. Generally Accepted Accounting Principles.
^2Calculated as core net income divided by average GAAP common equity.

 

Hawaiian Electric Company, Inc. (HECO) and Subsidiaries
RECONCILIATION OF GAAP^1 TO NON-GAAP MEASURES
(Unaudited)
                        Net Income
                        Twelve months ended
                        March 31, 
(in millions)           2013      2012
GAAP (as reported)      $         $        
                            96.4    108.1
Excluding special
items (after-tax):
Settlement agreement
for the partial         24.4      -
writedown of certain
utility assets
Settlement agreement
for the partial         -         5.7
writedown of the EOTP
Phase I costs
Non-GAAP (core)         $         $        
                          120.8     113.8
Note:  Columns may not foot due to rounding
                        Twelve months ended
                        March 31, 
Other measures:         2013      2012
Return on average common equity (ROACE) (simple
average):
Based on GAAP           6.7%      7.9%
Based on non-GAAP       8.4%      8.3%
(core)^2
                        Hawaiian Electric    Hawaii Electric  Maui Electric
                        Company, Inc.        Light Company,   Company, Limited
                        (HECO, Oahu)         Inc. (HELCO)     (MECO)
                        Net Income           Net Income       Net Income
                        Twelve months ended  Twelve months    Twelve months
                                             ended            ended
                        March 31,            March 31,        March 31, 
(in millions)           2013      2012       2013    2012     2013     2012
GAAP (as reported)      $         $          $       $        $        $      
                            65.1      66.5      14.0    26.6     17.3     15.0
Excluding special
items (after-tax):
Settlement agreement
for the partial         17.7      -          3.4     -        3.4      -
writedown of certain
utility assets
Settlement agreement
for the partial         -         5.7        -       -        -        -
writedown of the EOTP
Phase I costs
Non-GAAP (core)         $         $          $       $        $        $      
                            82.8      72.2      17.4    26.6     20.7     15.0
Note:  Columns may not foot due to rounding
                        Twelve months ended  Twelve months    Twelve months
                                             ended            ended
                        March 31,            March 31,        March 31, 
Other measures:         2013      2012       2013    2012     2013     2012
Return on average common equity (ROACE) (simple
average):
Based on GAAP           7.0%      7.7%       5.1%    9.6%     7.4%     6.4%
Based on non-GAAP       8.9%      8.4%       6.3%    9.6%     8.8%     6.4%
(core)^2

^1U.S. Generally Accepted Accounting Principles.
^2Calculated as core net income divided by average GAAP common equity.

 

Contact: Shelee M.T. Kimura
Manager, Investor Relations & Telephone: (808) 543-7384
Strategic Planning            E-mail: skimura@hei.com

(Logo: http://photos.prnewswire.com/prnh/20110411/LA80136LOGO)

SOURCE Hawaiian Electric Industries, Inc.

Website: http://www.hei.com
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