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DALLAS--(BUSINESS WIRE)--
Atmos Energy Corporation (ATO) today reported consolidated results
for its fiscal 2015 first quarter ended December 31, 2014.
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Fiscal 2015 first quarter consolidated net income, excluding net
unrealized margins, was $92.8 million, or $0.91 per diluted share,
compared with consolidated net income, excluding net unrealized
margins, of $80.6 million, or $0.88 per diluted share in the
prior-year quarter.
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Fiscal 2015 first quarter consolidated net income was $97.6 million,
or $0.96 per diluted share, after including unrealized net gains of
$4.8 million, or $0.05 per diluted share. Net income was $87.0
million, or $0.95 per diluted share in the prior-year quarter, after
including unrealized net gains of $6.4 million, or $0.07 per diluted
share.
-
The company's Board of Directors has declared a quarterly dividend of
39 cents per common share. The indicated annual dividend for fiscal
2015 is $1.56, which represents a 5.4 percent increase over fiscal
2014.
“Our first quarter results reflect the successful execution of our
infrastructure investment strategy launched in 2012,” said Kim Cocklin,
president and chief executive officer of Atmos Energy Corporation. “This
investment continues to deliver the safe and reliable natural gas
service our customers deserve. We remain poised to deliver on our fiscal
2015 guidance of between $2.90 and $3.05 per diluted share,” Cocklin
concluded.
Results for the Three Months Ended December 31, 2014
Regulated distribution gross profit increased $24.6 million to $323.8
million for the three months ended December 31, 2014, compared with
$299.2 million in the prior-year quarter. Gross profit reflects a net
$19.3 million quarter-over-quarter increase in rates, primarily in the
Mid-Tex, Kentucky/Mid-States and West Texas Divisions. Additionally,
gross profit increased $2.1 million from higher transportation revenues
and $2.9 million from higher revenue-related taxes.
Regulated pipeline gross profit increased $12.3 million to $83.6 million
for the three months ended December 31, 2014, compared with $71.3
million during the same period last year. This increase is primarily the
result of a $12.5 million increase in revenues from the Gas Reliability
Infrastructure Program (GRIP) filing that became effective in May 2014.
Nonregulated gross profit decreased $2.6 million to $16.0 million for
the three months ended December 31, 2014, compared with $18.6 million
for the prior-year period, primarily due to changes in unrealized
margins. Realized margins were flat quarter over quarter.
Consolidated operation and maintenance expense for the three months
ended December 31, 2014, was $118.6 million, compared with $115.8
million for the prior-year period. The $2.8 million increase resulted
primarily from higher employee labor and benefits expense and increased
pipeline maintenance spending. These increases were partially offset by
a reduction in legal expenses.
Capital expenditures increased to $261.3 million for the three months
ended December 31, 2014, compared with $180.6 million in the prior-year
period. The $80.7 million increase is largely due to a $41.8 million
increase in spending in the regulated pipeline segment primarily
associated with the enhancement and fortification of two storage fields
to ensure the reliability of gas service to the Mid-Tex Division.
Additionally, spending in the regulated distribution segment increased
$38.7 million in the current quarter. The increase primarily reflects
the timing of the spending combined with a planned increase in safety
and reliability investment in fiscal 2015.
For the three months ended December 31, 2014, the company generated
operating cash flow of $27.4 million, a $6.9 million decrease compared
with the three months ended December 31, 2013. The decrease primarily
reflects the timing of customer collections and vendor payments.
The debt capitalization ratio at December 31, 2014 was 49.5 percent,
compared with 46.2 percent at September 30, 2014 and 54.2 percent at
December 31, 2013. At December 31, 2014, there was $550.9 million of
short-term debt outstanding, compared with $196.7 million at
September 30, 2014 and $689.8 million at December 31, 2013.
Outlook
The leadership of Atmos Energy remains focused on enhancing system
safety and reliability through infrastructure investment, while
delivering shareholder value and consistent earnings growth. Atmos
Energy continues to expect fiscal 2015 earnings to be in the range of
$2.90 to $3.05 per diluted share, excluding unrealized margins. Capital
expenditures for fiscal 2015 are expected to continue to range between
$900 million and $1 billion.
Conference Call to be Webcast February 4, 2015
Atmos Energy will host a conference call with financial analysts to
discuss the financial results for the fiscal 2015 first quarter on
Wednesday, February 4, 2015, at 8:00 a.m. Eastern. The telephone number
is 877-485-3107 and the international telephone number is 201-689-8427.
The conference call will be webcast live on the Atmos Energy website at www.atmosenergy.com.
A playback of the call will be available on the website later that day.
Kim Cocklin, president and chief executive officer, and Bret Eckert,
senior vice president and chief financial officer, will participate in
the conference call.
Highlights and Recent Developments
Atmos Energy Names Michael E. Haefner as Executive Vice President
On January 19, 2015, the Board of Directors of Atmos Energy promoted
Michael E. Haefner to Executive Vice President, effective immediately.
In addition to his responsibilities as Senior Vice President, Human
Resources and a member of the management committee, Mr. Haefner will
assume responsibility for Atmos-Pipeline Texas, Atmos Energy Holdings,
Inc. and the company's gas supply and services function.
This news release should be read in conjunction with the attached
unaudited financial information.
Forward-Looking Statements
The matters discussed in this news release may contain “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. All
statements other than statements of historical fact included in this
news release are forward-looking statements made in good faith by the
company and are intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of 1995.
When used in this news release or in any of the company’s other
documents or oral presentations, the words “anticipate,” “believe,”
“estimate,” “expect,” “forecast,” “goal,” “intend,” “objective,” “plan,”
“projection,” “seek,” “strategy” or similar words are intended to
identify forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties that could cause actual results to
differ materially from those discussed in this news release, including
the risks and uncertainties relating to regulatory trends and decisions,
the company’s ability to continue to access the capital markets and the
other factors discussed in the company’s reports filed with the
Securities and Exchange Commission. These factors include the risks and
uncertainties discussed in the company’s Annual Report on Form 10-K for
the fiscal year ended September 30, 2014. Although the company believes
these forward-looking statements to be reasonable, there can be no
assurance that they will approximate actual experience or that the
expectations derived from them will be realized. The company undertakes
no obligation to update or revise forward-looking statements, whether as
a result of new information, future events or otherwise.
About Atmos Energy
Atmos Energy Corporation, headquartered in Dallas, is one of the
country’s largest natural-gas-only distributors, serving over three
million natural gas distribution customers in over 1,400 communities in
eight states from the Blue Ridge Mountains in the East to the Rocky
Mountains in the West. Atmos Energy also manages company-owned natural
gas pipeline and storage assets, including one of the largest intrastate
natural gas pipeline systems in Texas and provides natural gas marketing
and procurement services to industrial, commercial and municipal
customers primarily in the Midwest and Southeast. For more information,
visit www.atmosenergy.com.
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Atmos Energy Corporation
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Financial Highlights (Unaudited)
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Consolidated Statements of Income
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Three Months Ended December 31
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(000s except per share)
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2014
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2013
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Gross Profit:
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|
|
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Regulated distribution segment
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$
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323,812
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$
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299,171
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Regulated pipeline segment
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83,567
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71,341
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Nonregulated segment
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16,039
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18,566
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Intersegment eliminations
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(133
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)
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(121
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)
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Gross profit
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423,285
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388,957
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Operation and maintenance expense
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118,582
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115,757
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Depreciation and amortization
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67,593
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60,469
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Taxes, other than income
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49,385
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42,011
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Total operating expenses
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235,560
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218,237
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Operating income
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187,725
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|
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170,720
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Miscellaneous expense
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(1,707
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)
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(2,132
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)
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Interest charges
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29,764
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32,115
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Income before income taxes
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156,254
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136,473
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Income tax expense
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58,659
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49,457
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Net income
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$
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97,595
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$
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87,016
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Basic net income per share
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$
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0.96
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$
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0.95
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Diluted net income per share
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$
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0.96
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$
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0.95
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Cash dividends per share
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$
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0.39
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$
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0.37
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Weighted average shares outstanding:
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Basic
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101,581
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91,841
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Diluted
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101,581
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|
|
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91,843
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|
|
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|
|
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|
|
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Three Months Ended December 31
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Summary Net Income (Loss) by Segment (000s)
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2014
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2013
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Regulated distribution
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$
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71,387
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$
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62,757
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Regulated pipeline
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22,035
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19,446
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Nonregulated
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(584
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)
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(1,635
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)
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Unrealized margins, net of tax
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4,757
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6,448
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Consolidated net income
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$
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97,595
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$
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87,016
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Atmos Energy Corporation
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Financial Highlights, continued (Unaudited)
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Condensed Consolidated Balance Sheets
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December 31,
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September 30,
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(000s)
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2014
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2014
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Net property, plant and equipment
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$
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6,912,541
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$
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6,725,906
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Cash and cash equivalents
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123,832
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42,258
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Accounts receivable, net
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607,421
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343,400
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Gas stored underground
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277,916
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278,917
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Other current assets
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109,595
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111,265
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Total current assets
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1,118,764
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775,840
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Goodwill
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742,029
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742,029
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Deferred charges and other assets
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341,759
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350,929
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$
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9,115,093
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$
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8,594,704
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Shareholders’ equity
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$
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3,063,925
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$
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3,086,232
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Long-term debt
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2,455,131
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2,455,986
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Total capitalization
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5,519,056
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5,542,218
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Accounts payable and accrued liabilities
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397,595
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308,086
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Other current liabilities
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472,113
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405,869
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Short-term debt
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550,903
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|
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196,695
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Total current liabilities
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1,420,611
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910,650
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Deferred income taxes
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1,256,443
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1,286,616
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Deferred credits and other liabilities
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918,983
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855,220
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|
|
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$
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9,115,093
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|
$
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8,594,704
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Atmos Energy Corporation
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Financial Highlights, continued (Unaudited)
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Condensed Consolidated Statements of Cash
Flows
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Three Months Ended December 31
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(000s)
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2014
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2013
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Cash flows from operating activities
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Net income
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$
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97,595
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$
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87,016
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Depreciation and amortization
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67,593
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60,469
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Deferred income taxes
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55,418
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47,127
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Other
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5,164
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5,449
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Changes in assets and liabilities
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(198,355
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)
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(165,761
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)
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Net cash provided by operating activities
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27,415
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34,300
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Cash flows from investing activities
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Capital expenditures
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(261,313
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)
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(180,567
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)
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Other, net
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(739
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)
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(5,867
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)
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Net cash used in investing activities
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(262,052
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)
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(186,434
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)
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Cash flows from financing activities
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Net increase in short-term debt
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350,574
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320,783
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Net proceeds from issuance of long-term debt
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493,538
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—
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Settlement of interest rate agreements
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13,364
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—
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Repayment of long-term debt
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(500,000
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)
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—
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Cash dividends paid
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(39,592
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)
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(33,984
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)
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Repurchase of equity awards
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(7,985
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)
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|
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(6,289
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)
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Issuance of common stock
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6,312
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(12
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)
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Net cash provided by financing activities
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316,211
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280,498
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Net increase in cash and cash equivalents
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81,574
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|
|
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128,364
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Cash and cash equivalents at beginning of period
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|
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42,258
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|
|
|
66,199
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Cash and cash equivalents at end of period
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|
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$
|
123,832
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|
|
$
|
194,563
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|
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|
|
|
|
|
|
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Three Months Ended December 31
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Statistics
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2014
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2013
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Consolidated regulated distribution throughput (MMcf as metered)
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123,434
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|
|
|
130,485
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Consolidated regulated pipeline volumes (MMcf)
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|
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120,634
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|
|
|
118,774
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Consolidated nonregulated delivered gas sales volumes (MMcf)
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90,930
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|
|
|
92,637
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Regulated distribution meters in service
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|
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3,133,951
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|
|
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3,042,931
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Regulated distribution average cost of gas
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$
|
6.02
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|
$
|
5.54
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Nonregulated net physical position (Bcf)
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|
|
|
17.1
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|
|
|
15.5
|
|
|
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