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Hawaiian Electric Industries Reports 2013 Year-End & Fourth Quarter Earnings

 Hawaiian Electric Industries Reports 2013 Year-End & Fourth Quarter Earnings

2013 Net Income of $161.5 Million; Diluted Earnings Per Share (EPS) of $1.62
Fourth Quarter Net Income of $39.0 Million; EPS of $0.39

PR Newswire

HONOLULU, Feb. 18, 2014

HONOLULU, Feb. 18, 2014 /PRNewswire/ --

Selected 2013 Highlights:

  oCore net income^1of $161.5 million in 2013 vs $163.1 million in 2012;
    Reported net income of $161.5 million in 2013 vs $138.7 million in 2012
  oCore EPS^1 of $1.62 in 2013 vs $1.68 in 2012; Reported EPS of $1.62 in
    2013 vs $1.42 in 2012
  oROE of 9.7% -- 8.0% utility; 11.4% bank
  oSuccessfully accessed the capital markets to fund ongoing utility
    investments in local infrastructure to modernize the electric grid

       oExecuted $180 million equity forward sale agreement in March 2013
       oRefinanced $216 million of debt at lower interest rates

  oContinued investments by local shareholders: Of the shareholders who
    disclose residence, over a third are Hawaii based, representing at least
    25% of total HEI ownership
  oContinued 113-year history of continuous dividends: Through HEI's dividend
    reinvestment program, shareholders invested $42 million in HEI by
    reinvesting their dividends and buying more stock 
  oContinued legacy of delivering value for customers and Hawaii:

       oRecord 18% of electricity used by Hawaiian Electric customers was
         from renewable sources

            +Surpassed Hawaii's 2015 renewable portfolio standard of 15%
            +Avoided-oil equivalent of 2.9 million barrels which would have
              cost our state approximately $350 million^2 in imported oil in
              2013
            +Led the nation by far in the integration of customer-sited
              solar: 10% of Oahu customers using rooftop solar by the end of
              2013
            +Bank continued clean energy financing for rooftop solar vendors
            +Integrated two new lower-cost utility-scale solar projects on
              Oahu
            +Reached milestone to deactivate Honolulu Power Plant (January
              2014)
            +Leveraging collaborative partnerships and over $20 million in
              grant funding to seek clean energy solutions for Hawaii

       oUtility proposals to the Hawaii Public Utilities Commission for 259
         MW renewables priced ~30% lower than current rates^3
       oUtility operating expenses managed to inflationary increases while
         expanding strategic initiatives
       oBank provided over $2 billion in new credit and refinancings to
         customers
       oContributed over ten thousand volunteer hours and over $2 million of
         charitable contributions to community organizations

Hawaiian Electric Industries, Inc.(NYSE - HE) (HEI) today reported 2013
year-end consolidated net income for common stock of $161.5 million, or
diluted earnings per share (EPS) of $1.62. For the fourth quarter of 2013,
consolidated net income for common stock was $39.0million, or $0.39 EPS. The
comparison to prior year results is shown on a core earnings basis^1 in the
table below. Core earnings exclude a $24 million after-tax write-down in the
fourth quarter of 2012 related to a settlement agreement between Hawaiian
Electric Company^4 and the Hawaii Consumer Advocate which was subsequently
approved by the Hawaii Public Utilities Commission.

 RECONCILIATION OF GAAP TO NON-GAAP MEASURES
 ($ in millions, except per share amounts)
                             Three months           Years
                             ended December 31      ended December 31
                             2013           2012    2013      2012
 HEI CONSOLIDATED NET INCOME
 GAAP (as reported)          $ 39.0         $ 13.8  $ 161.5   $ 138.7
 Excluding special items     -              24.4    -         24.4
 Non-GAAP (core)             $ 39.0         $ 38.3  $ 161.5   $ 163.1
 HEI CONSOLIDATED DILUTED EARNINGS PER SHARE
 GAAP (as reported)          $ 0.39         $ 0.14  $ 1.62    $ 1.42
 Excluding special items     -              0.25    -         0.25
 Non-GAAP (core)             $ 0.39         $ 0.39  $ 1.62    $ 1.68
 Note: Columns may not foot due to rounding

"While earnings per share were down 4% due to earnings declines at both
American Savings Bank and Hawaiian Electric Company, we continued to deliver a
competitive 9.7% return on equity for the year. HEI's unique combination of
companies continues to provide us with the financial resources to efficiently
invest in our Hawaii-based  companies," said Constance Lau, HEI president and
chief executive officer. "Our utility continued to invest in the
modernization of our electric grid to ensure reliability and safety for our
customers as we integrate more renewable energy. These investments helped us
exceed Hawaii's 2015 Renewable Portfolio Standard of 15%, meeting 18% of
customers' electricity needs with renewable sources in 2013. Ten percent of
Oahu customers now have customer-sited solar, far more than any other
utility. At the same time, we are focused on reducing costs for our customers
with proposed utility-scale solar and wind projects priced 30% lower than the
current cost of generation. We also are working with other stakeholders on
the viability and benefits of bringing liquefied natural gas to Hawaii as a
cleaner, lower-cost alternative to oil while we continue to aggressively
pursue more renewable generation sources to displace fossil fuels."

"Our bank exceeded its loan growth goals while maintaining its targeted
portfolio mix, gained market share in home lending, improved credit quality,
and provided dividends to HEI while maintaining healthy capital levels.
Overall, we are pleased that we were able to achieve many of our goals in a
challenging and dynamic year," said Lau.

HAWAIIAN ELECTRIC COMPANY EARNINGS CONSISTENT WITH EXPECTATIONS

The utility's full-year and fourth quarter 2013 net income was $122.9 million
and $32.0 million, respectively. The comparison to the prior year is shown on
a core earnings basis in the chart below.

 RECONCILIATION OF GAAP TO NON-GAAP MEASURES
 ($ in millions)
                          Three months       Years
                          ended December 31  ended December 31
                          2013      2012     2013      2012
 HAWAIIAN ELECTRIC COMPANY NET INCOME
 GAAP (as reported)       $ 32.0    $ 4.2    $ 122.9   $ 99.3
 Excluding special items  -         24.4     -         24.4
 Non-GAAP (core)          $ 32.0    $ 28.7   $ 122.9   $ 123.7
 Note: Columns may not foot due to rounding

Full Year Results:

Core earnings declined by $0.8 million as additional recovery of costs was
slightly less than the total increases in costs, primarily driven by higher
customer service investments, lower cost recovery at Maui Electric due to its
2012 final rate case decision, and lower fuel efficiency performance on Oahu
due to efforts to run units at lower levels. These impacts were partially
offset by a net favorable income tax adjustment in 2013.

Operations and maintenance (O&M) expenses^5 (pretax) were $3 million or
approximately 0.9% higher compared to the prior year and below inflationary
levels. The increases were primarily due to higher customer service costs
(discussed above) partially offset by lower expenses for substation and
overhead line maintenance and lower overhaul expenses.

Fourth Quarter Results:

The $3.3 million core earnings improvement from the prior year quarter was
primarily driven by lower O&M expenses^5. ^ Additional recovery of costs was
offset by increases in depreciation resulting from infrastructure investments
to modernize the grid and ensure reliability, and lower allowance for funds
used during construction.

O&M expenses (pretax) were $6 million lower due to lower overhaul and
substation maintenance costs in the fourth quarter of 2013.

AMERICAN SAVINGS BANK: SOLID PERFORMANCE AND LOAN GROWTH
Full Year Results:

American Savings Bank's (American) net income for 2013 was $57.5 million
compared to $58.6 million in 2012. Lower 2013 earnings compared to the prior
year reflected the challenging regulatory and interest rate environment. The
primary drivers impacting net income for the year were (on an after-tax
basis):$2million lower net interest income as lower yields on loans
continued to more than offset the favorable contributions of loan growth; $2
million lower noninterest income due to lower mortgage banking income and
lower interchange fees as a result of the Durbin Amendment which became
effective in July 2013 for American, offsetting all the increases in other fee
income and the premium on the sale of the credit card portfolio; $4 million
higher noninterest expense primarily driven by higher loan and investment
product volumes to customers, sales and performance related incentives, and
benefit cost increases; and $7million lower provision for loan losses
resulting from continued improvement in credit quality, coupled with higher
recoveries from previously charged-off loans and release of reserves related
to the sale of the credit card portfolio. 

Overall, American's return on average equity for the full year remained solid
at 11.4% in 2013 compared to 11.7% in 2012 and the return on average assets
was 1.13% in 2013 compared to 1.18% in 2012.

Fourth Quarter Results:

Fourth quarter 2013 net income of $12.2 million was $3.1 million lower than
the linked quarter and $2.2 million lower than the same quarter of 2012.

Compared to the linked quarter of 2013, the $3.1 million net income decline
was primarily driven by (on an after-tax basis): $2 million lower noninterest
income mainly due to the gain on the strategic sale of the credit card
portfolio recorded in the third quarter of 2013; and $1 million higher
noninterest expense, largely attributable to the timing of certain
performance-related compensation expenses.

Compared to the same quarter of 2012, net income declined by $2.2 million
primarily driven by (on an after-tax basis): $4 million lower noninterest
income primarily due to lower gains on sales of loans of new residential
mortgages as the refinancing market contracted dramatically since mid-2013 and
lower interchange fees; and $2 million lower provision for loan losses.

American's fourth quarter 2013 return on average equity was 9.6%, down from
12.1% in the linked quarter and 11.3% in the same quarter last year. Return
on average assets was 0.94% for the fourth quarter of 2013, compared to 1.20%
from the linked quarter and 1.15% in the same quarter last year.

Also refer to the American news release issued on January 30, 2014.

HOLDING AND OTHER COMPANIES

The holding and other companies' net losses were $18.9million in 2013
compared to $19.3million in 2012. Fourth quarter net losses were $5.2
million in 2013 compared to $4.8million in the fourth quarter 2012.

WEBCAST AND CONFERENCE CALL

HEI TO ANNOUNCE 2014 EPS GUIDANCE IN EARNINGS CONFERENCE CALL

Hawaiian Electric Industries, Inc. will conduct a webcast and conference call
to review its 2013 earnings on Tuesday, February 18,2014, at 12:00 noon
Hawaii time (5:00 p.m. Eastern time). HEI will announce 2014 EPS guidance
during the scheduled webcast and conference call.

Interested parties may listen to the conference by calling (877) 415-3182 and
entering passcode: 61297681, or by accessing the webcast on HEI's website at
www.hei.com under the heading "Investor Relations." HEI and Hawaiian Electric
Company intend to continue to use HEI's website, www.hei.com, as a means of
disclosing additional 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, Hawaiian Electric Company's and American's press releases, HEI's and
Hawaiian Electric Company's Securities and Exchange Commission (SEC) filings
and HEI's public conference calls and webcasts. The information on HEI's
website is not incorporated by reference in this document or in HEI's and
Hawaiian Electric Company'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/dmsin 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 Hawaiian Electric Company's SEC filings.

An online replay of the webcast will be available at the same website
beginning about two hours after the event and will remain on HEI's website for
12 months. Replays of the conference call will also be available
approximately two hours after the event through March 4, 2014, by dialing
(888)286-8010, passcode: 22850388.

HEI supplies power to approximately 450,000 customers or 95% of Hawaii's
population through its electric utilities, Hawaiian Electric Company, Inc.,
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 Savings Bank, one of Hawaii's largest financial
institutions.

NON-GAAP MEASURES

See "Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures" and
related reconciliations on pages 16 to 17 of this release.

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 Quarterly Report on Form
10-Q for the quarter ended September30, 2013 and HEI's future 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, Hawaiian Electric Company, 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.

^1 Non-GAAP measure which excludes the fourth quarter after-tax partial
write-off of certain utility assets of $24.4million in 2012. See the
included tables for GAAP to Non-GAAP reconciliations and "Explanation of HEI's
Use of Certain Unaudited Non-GAAP Measures" and related reconciliation.
^2Estimate based on 2013 average price per barrel of $125.
^3 Based on October 2013 on-peak avoided cost of oil generation.
^4 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.
^5 Excludes net income neutral expenses covered by surcharges or by third
parties of $8 million and $6 million for the full year in 2013 and 2012,
respectively, and $3 million and $2 million in the fourth quarter of 2013 and
2012, respectively. See "Explanation of HEI's Use of Certain Unaudited
Non-GAAP Measures" and the related reconciliation.
Note: Amounts indicated as "after-tax" in this earnings release are based
upon adjusting items for the composite statutory tax rates of 39% for the
utilities and 40% for the bank.

Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
(in thousands, except per       Three months          Years
share amounts)                  ended December 31     ended December 31
Revenues                        2013       2012       2013         2012
Electric utility                $ 764,096  $ 769,182  $ 2,980,172  $ 3,109,439
Bank                            62,306     68,970     258,147      265,539
Other                           45         (5)        151          17
Total revenues                  826,447    838,147    3,238,470    3,374,995
Expenses
Electric utility                704,588    749,739    2,734,659    2,896,427
Bank                            44,540     46,945     171,090      177,106
Other                           5,026      4,191      17,302       17,266
Total expenses                  754,154    800,875    2,923,051    3,090,799
Operating income (loss)
Electric utility                59,508     19,443     245,513      213,012
Bank                            17,766     22,025     87,057       88,433
Other                           (4,981)    (4,196)    (17,151)     (17,249)
Total operating income          72,293     37,272     315,419      284,196
Interest expense, net—other
than on deposit liabilities     (15,774)   (19,393)   (75,479)     (78,151)
and other bank borrowings
Allowance for borrowed funds    620        1,904      2,246        4,355
used during construction
Allowance for equity funds      1,531      1,459      5,561        7,007
used during construction
Income before income taxes      58,670     21,242     247,747      217,407
Income taxes                    19,184     6,933      84,341       76,859
Net income                      39,486     14,309     163,406      140,548
Preferred stock dividends of    473        473        1,890        1,890
subsidiaries
Net income for common stock     $ 39,013   $ 13,836   $ 161,516    $ 138,658
Basic earnings per common       $ 0.39     $ 0.14     $ 1.63       $ 1.43
share
Diluted earnings per common     $ 0.39     $ 0.14     $ 1.62       $ 1.42
share
Dividends per common share      $ 0.31     $ 0.31     $ 1.24       $ 1.24
Weighted-average number of      99,853     97,602     98,968       96,908
common shares outstanding
Adjusted weighted-average       100,525    97,970     99,623       97,338
shares
Net income (loss) for common
stock by segment
Electric utility                $ 31,990   $ 4,225    $ 122,929    $ 99,276
Bank                            12,184     14,363     57,534       58,637
Other                           (5,161)    (4,752)    (18,947)     (19,255)
Net income for common stock     $ 39,013   $ 13,836   $ 161,516    $ 138,658
Comprehensive income
attributable to Hawaiian        $ 57,949   $ 3,103    $ 171,189    $ 131,372
ElectricIndustries, Inc.
Return on average common                              9.7%           8.9%
equity

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, 2013 (when filed) and HEI's Quarterly Reports on
SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and
September 30, 2013, as updated by SEC Forms 8-K.



Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)
December 31                                         2013          2012
(dollarsinthousands)
Assets
Cash and cash equivalents                           $ 220,036     $ 219,662
Accounts receivable and unbilled revenues, net      346,785       362,823
Available-for-sale investment and mortgage-related  529,007       671,358
securities
Investment in stock of Federal Home Loan Bank of    92,546        96,022
Seattle
Loans receivable held for investment, net           4,110,113     3,737,233
Loans held for sale, at lower of cost or fair       5,302         26,005
value
Property, plant and equipment, net of accumulated
depreciation of $2,191,199 in 2013 and $2,125,286   3,858,947     3,594,829
in 2012
Regulatory assets                                   575,924       864,596
Other                                               519,194       494,414
Goodwill                                            82,190        82,190
Total assets                                        $ 10,340,044  $ 10,149,132
Liabilities and shareholders' equity
Liabilities
Accounts payable                                    $ 212,331     $ 212,379
Interest and dividends payable                      26,716        26,258
Deposit liabilities                                 4,372,477     4,229,916
Short-term borrowings—other than bank               105,482       83,693
Other bank borrowings                               244,514       195,926
Long-term debt, net—other than bank                 1,492,945     1,422,872
Deferred income taxes                               529,260       439,329
Regulatory liabilities                              349,299       324,152
Contributions in aid of construction                432,894       405,520
Defined benefit pension and other postretirement    288,539       656,394
benefit plans liability
Other                                               524,224       524,535
Total liabilities                                   8,578,681     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: 101,259,800 shares  1,488,126     1,403,484
in 2013 and 97,928,403 shares in 2012
Retained earnings                                   255,694       216,804
Accumulated other comprehensive loss, net of tax    (16,750)      (26,423)
benefits
Total shareholders' equity                          1,727,070     1,593,865
Total liabilities and shareholders' equity          $ 10,340,044  $ 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, 2013 (when filed) and HEI's Quarterly Reports on
SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and
September 30, 2013, as updated by SEC Forms 8-K.



Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries

CONSOLIDATED CASH FLOWS

(Unaudited)
YearsendedDecember31                                   2013       2012
(in thousands)
Cash flows from operating activities
Net income                                                $ 163,406  $ 140,548
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation of property, plant and equipment             160,061    150,389
Other amortization                                        4,667      7,958
Provision for loan losses                                 1,507      12,883
Impairment of utility assets                              —          40,000
Loans receivable originated and purchased, held for sale  (249,022)  (519,622)
Proceeds from sale of loans receivable, held for sale     273,775    513,000
Gain on sale of credit card portfolio                     (2,251)    —
Increase in deferred income taxes                         80,399     90,848
Excess tax benefits from share-based payment arrangements (430)      (61)
Allowance for equity funds used during construction       (5,561)    (7,007)
Change in cash overdraft                                  1,038      —
Changes in assets and liabilities
Decrease (increase) in accounts receivable and unbilled   16,038     (18,501)
revenues, net
Decrease in fuel oil stock                                27,332     10,129
Increase in regulatory assets                             (65,461)   (72,401)
Decrease in accounts, interest and dividends payable      (23,153)   (39,738)
Change in prepaid and accrued income taxes and utility    (19,406)   21,079
revenue taxes
Decrease in defined benefit pension and other             (33,014)   (228)
postretirement benefit plans liability
Change in other assets and liabilities                    (2,779)    (94,734)
Net cash provided by operating activities                 327,146    234,542
Cash flows from investing activities
Available-for-sale investment and mortgage-related        (112,654)  (243,633)
securities purchased
Principal repayments on available-for-sale investment and 158,558    191,253
mortgage-related securities
Proceeds from sale of available-for-sale investment and   71,367     3,548
mortgage-related securities
Net increase in loans held for investment                 (398,426)  (112,730)
Proceeds from sale of real estate acquired in settlement  9,212      11,336
of loans
Capital expenditures                                      (353,879)  (325,480)
Contributions in aid of construction                      32,160     45,982
Proceeds from sale of credit card portfolio               26,386     —
Other                                                     3,516      2,677
Net cash used in investing activities                     (563,760)  (427,047)
Cash flows from financing activities
Net increase in deposit liabilities                       142,561    159,884
Net increase in short-term borrowings with original       21,789     14,872
maturities of three months or less
Net decrease in retail repurchase agreements              (1,418)    (37,291)
Proceeds from other bank borrowings                       130,000    5,000
Repayments of other bank borrowings                       (80,000)   (5,000)
Proceeds from issuance of long-term debt                  286,000    457,000
Repayment of long-term debt                               (216,000)  (375,500)
Excess tax benefits from share-based payment arrangements 430        61
Net proceeds from issuance of common stock                55,086     23,613
Common stock dividends                                    (98,383)   (96,202)
Preferred stock dividends of subsidiaries                 (1,890)    (1,890)
Other                                                     (1,187)    (2,645)
Net cash provided by financing activities                 236,988    141,902
Net increase (decrease) in cash and cash equivalents      374        (50,603)
Cash and cash equivalents, January1                      219,662    270,265
Cash and cash equivalents, December31                    $ 220,036  $ 219,662

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, 2013 (when filed) and HEI's Quarterly Reports on
SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and
September 30, 2013, as updated by SEC Forms 8-K.

Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
                                Three months          Years ended
                                ended December 31     December 31
(dollars in thousands, except   2013       2012       2013         2012
per barrel amounts)
Revenues                        $ 764,096  $ 769,182  $ 2,980,172  $ 3,109,439
Expenses
Fuel oil                        307,814    311,343    1,185,552    1,297,419
Purchased power                 184,012    184,400    710,681      724,240
Other operation and             102,299    107,362    403,270      397,429
maintenance
Depreciation                    38,160     35,942     154,025      144,498
Taxes, other than income taxes  72,303     70,692     281,131      292,841
Impairment of utility assets    —          40,000     —            40,000
Total expenses                  704,588    749,739    2,734,659    2,896,427
Operating income                59,508     19,443     245,513      213,012
Allowance for equity funds      1,531      1,459      5,561        7,007
used during construction
Interest expense and other      (11,830)   (15,463)   (59,279)     (62,055)
charges, net
Allowance for borrowed funds    620        1,904      2,246        4,355
used during construction
Income before income taxes      49,829     7,343      194,041      162,319
Income taxes                    17,340     2,619      69,117       61,048
Net income                      32,489     4,724      124,924      101,271
Preferred stock dividends of    229        229        915          915
subsidiaries
Net income attributable to      32,260     4,495      124,009      100,356
Hawaiian Electric
Preferred stock dividends of    270        270        1,080        1,080
Hawaiian Electric
Net income for common stock     $ 31,990   $ 4,225    $ 122,929    $ 99,276
Comprehensive income
attributable to Hawaiian        $ 33,516   $ 3,058    $ 124,507    $ 98,338
Electric
OTHER ELECTRIC UTILITY
INFORMATION
Kilowatthour sales (millions)
 Hawaiian Electric         1,759      1,771      6,859        6,976
 Hawaii Electric Light     273        275        1,076        1,085
 Maui Electric             292        290        1,135        1,145
                                2,324      2,336      9,070        9,206
Wet-bulb temperature (Oahu      69.3       69.4       68.8         68.9
average; degrees Fahrenheit)
Cooling degree days (Oahu)      1,135      1,102      4,506        4,532
Average fuel oil cost per       $ 133.88   $ 133.37   $ 131.10     $ 138.09
barrel
Return on average common
equity (%) (simple average)^1
 Hawaiian Electric                               7.98         7.57
 Hawaii Electric Light                           7.41         5.90
 Maui Electric                                   8.91         5.44
 Hawaiian Electric                               8.02         6.91
Consolidated

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual Report on SEC
Form 10-K for the year ended December 31, 2013 (when filed) and the
consolidated financial statements and the notes thereto in Hawaiian Electric's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June
30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.



Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)
December31                                           2013         2012
(in thousands)
Assets
Utility plant, at cost
Land                                                  $ 51,883     $ 51,568
Plant and equipment                                   5,701,875    5,364,400
Less accumulated depreciation                         (2,111,229)  (2,040,789)
Construction in progress                              143,233      151,378
Net utility plant                                     3,785,762    3,526,557
Current assets
Cash and equivalents                                  62,825       17,159
Customer accounts receivable, net                     175,448      210,779
Accrued unbilled revenues, net                        144,124      134,298
Other accounts receivable, net                        14,062       28,176
Fuel oil stock, at average cost                       134,087      161,419
Materials and supplies, at average cost               59,044       51,085
Prepayments and other                                 52,857       32,865
Regulatory assets                                     69,738       51,267
Total current assets                                  712,185      687,048
Other long-term assets
Regulatory assets                                     506,186      813,329
Unamortized debt expense                              9,003        10,554
Other                                                 73,993       71,305
Total other long-term assets                          589,182      895,188
Total assets                                          $ 5,087,129  $ 5,108,793
Capitalization and liabilities
Capitalization
Common stock, $6 2/3 par value, authorized 50, 000
shares; outstanding 15,429,105 shares in 2013 and     $ 102,880    $ 97,788
14,665,264 shares in 2012
Premium on capital stock                              541,452      468,045
Retained earnings                                     948,624      907,273
Accumulated other comprehensive income (loss), net of 608          (970)
taxes - retirement benefit plans
Common stock equity                                   1,593,564    1,472,136
Cumulative preferred stock – not subject to mandatory 34,293       34,293
redemption
Long-term debt, net                                   1,206,545    1,147,872
Total capitalization                                  2,834,402    2,654,301
Current liabilities
Current portion of long-term debt                     11,400       —
Accounts payable                                      189,559      186,824
Interest and preferred dividends payable              21,652       21,092
Taxes accrued                                         249,445      251,066
Regulatory liabilities                                1,916        1,212
Other                                                 63,881       60,801
Total current liabilities                             537,853      520,995
Deferred credits and other liabilities
Deferred income taxes                                 507,161      417,611
Regulatory liabilities                                347,383      322,940
Unamortized tax credits                               73,539       66,584
Defined benefit pension and other postretirement      262,162      620,205
benefit plans liability
Other                                                 91,735       100,637
Total deferred credits and other liabilities          1,281,980    1,527,977
Contributions in aid of construction                  432,894      405,520
Total capitalization and liabilities                  $ 5,087,129  $ 5,108,793

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual Report on SEC
Form 10-K for the year ended December 31, 2013 (when filed) and the
consolidated financial statements and the notes thereto in Hawaiian Electric's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June
30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.



Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)
Years ended December31                                  2013        2012
(in thousands)
Cash flows from operating activities
Net income                                               $ 124,924   $ 101,271
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation of property, plant and equipment            154,025     144,498
Other amortization                                       5,077       6,998
Impairment of utility assets                             —           40,000
Increase in deferred income taxes                        64,507      86,878
Change in tax credits, net                               7,017       6,075
Allowance for equity funds used during construction      (5,561)     (7,007)
Change in cash overdraft                                 1,038       —
Changes in assets and liabilities
  Decrease (increase) in accounts receivable           49,445      (47,004)
 Decrease (increase) in accrued unbilled revenues     (9,826)     3,528
 Decrease in fuel oil stock                           27,332      10,129
 Increase in materials and supplies                   (7,959)     (7,897)
 Increase in regulatory assets                        (65,461)    (72,401)
 Decrease in accounts payable                         (20,828)    (38,913)
 Change in prepaid and accrued income taxes and       (2,028)     25,239
revenue taxes
 Increase (decrease) in defined benefit pension and   2,240       (744)
other postretirementbenefit plans liability
Change in other assets and liabilities                   (31,499)    (73,419)
Net cash provided by operating activities                292,443     177,231
Cash flows from investing activities
Capital expenditures                                     (342,485)   (310,091)
Contributions in aid of construction                     32,160      45,982
Other                                                    (230)       —
Net cash used in investing activities                    (310,555)   (264,109)
Cash flows from financing activities
Common stock dividends                                   (81,578)    (73,044)
Preferred stock dividends of Hawaiian Electric and       (1,995)     (1,995)
subsidiaries
Proceeds from issuance of common stock                   78,500      44,000
Proceeds from issuance of long-term debt                 236,000     457,000
Repayment of long-term debt                              (166,000)   (368,500)
Other                                                    (1,149)     (2,230)
Net cash provided by financing activities                63,778      55,231
Net increase (decrease) in cash and cash equivalents     45,666      (31,647)
Cash and cash equivalents, January1                     17,159      48,806
Cash and cash equivalents, December31                   $ 62,825    $ 17,159

This information should be read in conjunction with the consolidated financial
statements and the notes thereto in Hawaiian Electric's Annual Report on SEC
Form 10-K for the year ended December 31, 2013 (when filed) and the
consolidated financial statements and the notes thereto in Hawaiian Electric's
Quarterly Reports on SEC Form 10-Q for the quarters ended March 31, 2013, June
30, 2013 and September 30, 2013, as updated by SEC Forms 8-K.



American Savings Bank, F.S.B.

STATEMENTS OF INCOME DATA

(Unaudited)
(in thousands)             Three months ended             Years ended
                                                          December 31
Interest and dividend      December  September  December
income                     31        30         31        2013       2012
                           2013      2013       2012
Interest and fees on       $ 43,405  $  43,337  $ 42,816  $ 172,969  $ 176,057
loans
Interest and dividends on
investment and             3,372     3,025      3,288     13,095     13,822
mortgage-related
securities
Total interest and         46,777    46,362     46,104    186,064    189,879
dividend income
Interest expense
Interest on deposit        1,222     1,262      1,408     5,092      6,423
liabilities
Interest on other          1,437     1,206      1,193     4,985      4,869
borrowings
Total interest expense     2,659     2,468      2,601     10,077     11,292
Net interest income        44,118    43,894     43,503    175,987    178,587
Provision for loan losses  554       54         3,379     1,507      12,883
Net interest income after  43,564    43,840     40,124    174,480    165,704
provision for loan losses
Noninterest income
Fees from other financial  5,732     5,728      8,887     27,099     31,361
services
Fee income on deposit      4,797     4,819      4,648     18,363     17,775
liabilities
Fee income on other        2,117     2,714      1,836     8,405      6,577
financial products
Mortgage banking income    1,413     1,547      6,331     8,309      14,628
Gains on sale of           —         —          —         1,226      134
securities
Other income, net          1,470     3,888      1,164     8,681      5,185
Total noninterest income   15,529    18,696     22,866    72,083     75,660
Noninterest expense
Compensation and employee  22,195    20,564     19,953    82,910     75,979
benefits
Occupancy                  4,197     4,208      4,313     16,747     17,179
Data processing            2,970     2,168      2,854     10,952     10,098
Services                   2,160     2,424      2,800     9,015      9,866
Equipment                  1,826     1,825      1,806     7,295      7,105
Other expense              7,951     8,539      9,207     32,585     32,116
Total noninterest expense  41,299    39,728     40,933    159,504    152,343
Income before income       17,794    22,808     22,057    87,059     89,021
taxes
Income taxes               5,610     7,532      7,694     29,525     30,384
Net income                 $ 12,184  $  15,276  $ 14,363  $ 57,534   $ 58,637
Comprehensive income       $ 23,802  $  14,107  $ 5,740   $ 60,733   $ 52,612
OTHER BANK INFORMATION (annualized
%, except as of period end)
Return on average assets   0.94      1.20       1.15      1.13       1.18
Return on average equity   9.56      12.13      11.29     11.38      11.68
Return on average          11.39     14.50      13.47     13.59      13.97
tangible common equity
Net interest margin        3.67      3.73       3.81      3.74       3.93
Net charge-offs to         0.15      —          0.13      0.09       0.24
average loans outstanding
As of period end
Nonperforming assets to
loans outstanding and      1.20      1.33       1.87
real estate owned *
Allowance for loan losses  0.97      1.01       1.11
to loans outstanding
Tier-1 leverage ratio *    9.1       9.3        9.1
Total risk-based capital   12.1      12.5       12.8
ratio *
Tangible common equity to  8.5       8.36       8.39
total assets
Dividend paid to HEI (via  10        10         15        40         45
ASHI) ($ in 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, 2013 (when filed) and HEI's Quarterly Reports on
SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and
September 30, 2013, as updated by SEC Forms 8-K.





American Savings Bank, F.S.B.

BALANCE SHEETS DATA

(Unaudited)
December31                                 2013                   2012
(in thousands)
Assets
Cash and cash equivalents                   $ 156,603              $ 184,430
Available-for-sale investment               529,007                671,358
and mortgage-related securities
Investment in stock of Federal              92,546                 96,022
Home Loan Bank of Seattle
Loans receivable held for                   4,150,229              3,779,218
investment
Allowance for loan losses                   (40,116)               (41,985)
Loans receivable held for                   4,110,113              3,737,233
investment, net
Loans held for sale, at lower of            5,302                  26,005
cost or fair value
Other                                       268,063                244,435
Goodwill                                    82,190                 82,190
Total assets                                $ 5,243,824            $ 5,041,673
Liabilities and shareholder's
equity
Deposit                                     $ 1,214,418            $ 1,164,308
liabilities–noninterest-bearing
Deposit                                     3,158,059              3,065,608
liabilities–interest-bearing
Other borrowings                            244,514                195,926
Other                                       105,679                117,752
Total liabilities                           4,722,670              4,543,594
Common stock                                336,054                333,712
Retained earnings                           197,297                179,763
Accumulated other comprehensive
loss, net of tax benefits
 Net unrealized gains       $ (3,663)               $ 10,761
(losses) on securities
 Retirement benefit plans   (8,534)    (12,197)     (26,157)  (15,396)
 Total shareholder's equity              521,154                498,079
 Total liabilities and                   $ 5,243,824            $ 5,041,673
shareholder's equity

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, 2013 (when filed) and HEI's Quarterly Reports on
SEC Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and
September 30, 2013, as updated by SEC Forms 8-K.



EXPLANATION OF HEI'S USE OF CERTAIN UNAUDITED NON-GAAP MEASURES

HEI and Hawaiian Electric Company management use certain non-GAAP measures to
evaluate the performance of the utility and HEI. Management believes these
non-GAAP measures provide useful information and are a better indicator of the
companies' core operating activities. Core earnings and other financial
measures 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 charge for the partial write-off of utility assets in 2012.
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.

The accompanying table also provides the calculation of utility GAAP O&M
adjusted for "O&M-related net income neutral items" which are O&M expenses
covered by specific surcharges or by third parties. This item is grossed-up
in revenue and expense and does not impact net income.

RECONCILIATION OF GAAP^1 TO NON-GAAP MEASURES
Hawaiian Electric Industries, Inc. and Subsidiaries (HEI)
Unaudited
($ in millions, except per share amounts)
                                          Three months ended  Years ended
                                          December 31         December 31
                                          2013       2012     2013     2012
HEI CONSOLIDATED NET INCOME
GAAP (as reported)                        $ 39.0     $ 13.8   $ 161.5  $ 138.7
Excluding special items (after-tax):
Settlement agreement for the partial      -          24.4     -        24.4
writedown of certain utility assets
Non-GAAP (core)                           $ 39.0     $ 38.3   $ 161.5  $ 163.1
HEI CONSOLIDATED DILUTED EARNINGS PER
SHARE
GAAP (as reported)                        $ 0.39     $ 0.14   $ 1.62   $ 1.42
Excluding special items (after-tax):
Settlement agreement for the partial      -          0.25     -        0.25
writedown of certain utility assets
Non-GAAP (core)                           $ 0.39     $ 0.39   $ 1.62   $ 1.68
HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average)
Based on GAAP                                                 9.7%     8.9%
Based on non-GAAP (core)^2                                    9.7%     10.4%

Note: Columns may not foot due to rounding
^1 Accounting principles generally accepted in the United States of America
^2 Calculated as core net income divided by average GAAP common equity



RECONCILIATION OF GAAP TO NON-GAAP MEASURES
Hawaiian Electric Company, Inc. and Subsidiaries
Unaudited
($ in millions)
                        Three months ended  Years ended
                        December 31         December 31
                        2013      2012      2013      2012
HAWAIIAN ELECTRIC
CONSOLIDATED NET
INCOME
GAAP (as reported)      $  32.0  $       $ 122.9  $  99.3
                                  4.2
Excluding special
items (after-tax):
 Settlement
agreement for the       -         24.4      -         24.4
partial writedown of
certain utility assets
Non-GAAP (core)         $  32.0  $  28.7  $ 122.9  $ 123.7
HAWAIIAN ELECTRIC CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple
average)
Based on GAAP                               8.0%      6.9%
Based on non-GAAP                           8.0%      8.6%
(core)^1
                        Hawaiian Electric   Hawaii Electric     Maui Electric
                                            Light
Years ended December    2013      2012      2013      2012      2013    2012
31
NET INCOME
GAAP (as reported)      $  81.5  $  70.4  $  20.1  $  16.2  $      $ 
                                                                21.3    12.6
Excluding special
items (after-tax):
 Settlement
agreement for the       -         17.7      -         3.4       -       3.4
partial writedown of
certain utility assets
Non-GAAP (core)         $  81.5  $  88.2  $  20.1  $  19.6  $      $ 
                                                                21.3    16.0
RETURN ON AVERAGE
COMMON EQUITY (ROACE)
(simple average)
Based on GAAP           8.0%      7.6%      7.4%      5.9%      8.9%    5.4%
Based on non-GAAP       8.0%      9.5%      7.4%      7.1%      8.9%    6.9%
(core)^1
                        Three months ended          Years ended
                        December 31                  December 31
                        2013      2012      Change    2013      2012    Change
HAWAIIAN ELECTRIC CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M) EXPENSE
GAAP (as reported)      $ 102.3  $ 107.4  $        $ 403.3  $       $  
                                            (5.1)              397.4  5.9
 Excluding
O&M-related net income  (2.9)     (1.5)     (1.4)     (8.0)     (5.6)   (2.4)
neutral items^2
Adjusted other
operation and           $  99.4  $ 105.9  $        $ 395.3  $       $  
maintenance (Non-GAAP                       (6.5)              391.8  3.5
measure)

Note: Columns may not foot due to rounding
^ 1 Calculated as core net income divided by average GAAP common equity
^2    Expenses covered by surcharges or by third parties recorded in revenues

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

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

SOURCE Hawaiian Electric Industries, Inc.

Website: http://www.hei.com
 
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