08/04/2022 | Press release | Distributed by Public on 08/04/2022 16:02
MADISON, Wis., Aug. 04, 2022 (GLOBE NEWSWIRE) -- Alliant Energy Corporation (NASDAQ: LNT) today announced U.S. generally accepted accounting principles (GAAP) consolidated unaudited earnings per share (EPS) for the three months ended June 30 as follows:
GAAP EPS | ||||||
2022 | 2021 | |||||
Utilities and Corporate Services | $ | 0.61 | $ | 0.51 | ||
American Transmission Company (ATC) Holdings | 0.03 | 0.03 | ||||
Non-utility and Parent | (0.01 | ) | 0.03 | |||
Alliant Energy Consolidated | $ | 0.63 | $ | 0.57 |
"For the second year in a row, we are tracking toward the upper half of our 2022 earnings guidance fueled by our strong first-half results," said John Larsen, Alliant Energy Chair, President and CEO. "And we are excited to be putting the first project of our 1,100 megawatts of announced Wisconsin solar into service in the coming weeks, an important milestone as we advance our Clean Energy Blueprint."
Utilities and Corporate Services - Alliant Energy's Utilities and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.61 per share of GAAP EPS in the second quarter of 2022, which was $0.10 per share higher than the second quarter of 2021. The primary drivers of higher EPS were higher allowance for funds used during construction (AFUDC), timing of income tax expense and higher temperature-normalized sales. These items were partially offset by higher interest expense.
Non-utility and Parent - Alliant Energy's Non-utility and Parent operations generated ($0.01) per share of GAAP EPS in the second quarter of 2022, which was a $0.04 per share earnings decrease compared to the second quarter of 2021. The lower EPS was primarily driven by the timing of income taxes.
Details regarding GAAP EPS variances between the second quarters of 2022 and 2021 for Alliant Energy are as follows:
Variance | |||
Higher allowance for funds used during construction | $ | 0.02 | |
Timing of income tax expense | 0.02 | ||
Higher interest expense | (0.03 | ) | |
Other (primarily higher temperature-normalized sales in 2022) | 0.05 | ||
Total | $ | 0.06 |
Higher allowance for funds used during construction (AFUDC) - AFUDC was higher in the second quarter of 2022 compared to the same period in 2021 primarily due to increased construction work in progress balances related to WPL's solar generation.
Timing of income tax expense - Income tax expense is recorded each quarter based on an estimated annual effective tax rate and the proportion of full year earnings generated each quarter, which causes fluctuations in the amount of tax expense quarter-over-quarter. The timing variance is expected to be reversed by the end of the year.
Higher interest expense - Total long-term debt increased due to additional financings since June 30, 2021 largely to fund capital expenditures including the solar expansion program in Wisconsin. In addition to higher long-term debt balances, increases to the interest rates charged to short-term debt contributed to higher interest expense in the second quarter of 2022 versus the same period in 2021.
2022 Earnings Guidance
Alliant Energy's consolidated guidance of $2.67 to $2.81 earnings per share for 2022 remains unchanged. Drivers for Alliant Energy's 2022 earnings guidance include, but are not limited to:
The 2022 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, future changes in laws including corporate tax reform in Iowa, regulations or regulatory policies, adjustments made to deferred tax assets and liabilities from valuation allowances, changes in credit loss liabilities related to guarantees, pending lawsuits and disputes, settlement charges related to pension and other postretirement benefit plans, federal and state income tax audits and other Internal Revenue Service proceedings, or changes in GAAP and tax methods of accounting that may impact the reported results of Alliant Energy.
Earnings Conference Call
A conference call to review the second quarter 2022 results is scheduled for Friday, August 5, 2022 at 9 a.m. central time. Alliant Energy Chair, President and Chief Executive Officer John Larsen, and Executive Vice President and Chief Financial Officer Robert Durian will host the call. The conference call is open to the public and can be accessed in two ways. Interested parties may listen to the call by dialing 800-458-4121 (United States or Canada) or 323-701-0225 (International), passcode 4175543. Interested parties may also listen to a webcast at www.alliantenergy.com/investors. In conjunction with the information in this earnings announcement and the conference call, Alliant Energy posted supplemental materials on its website. A replay of the call will be available through August 12, 2022, at 888-203-1112 (United States or Canada) or 719-457-0820 (International), passcode 4175543. An archive of the webcast will be available on the Company's Web site at www.alliantenergy.com/investors for 12 months.
About Alliant Energy Corporation
Alliant Energy is the parent company of two public utility companies - Interstate Power and Light Company and Wisconsin Power and Light Company - and of Alliant Energy Finance, LLC, the parent company of Alliant Energy's non-utility operations. Alliant Energy, whose core purpose is to serve customers and build strong communities, is an energy-services provider with utility subsidiaries serving approximately 985,000 electric and 425,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the Company's primary focus. Alliant Energy, headquartered in Madison, Wisconsin, is a component of the S&P 500 and is traded on the Nasdaq Global Select Market under the symbol LNT. For more information, visit the Company's Web site at www.alliantenergy.com.
Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified by words such as "forecast," "expect," "guidance," or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Actual results could be materially affected by the following factors, among others:
For more information about potential factors that could affect Alliant Energy's business and financial results, refer to Alliant Energy's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission ("SEC"), including the sections therein titled "Risk Factors," and its other filings with the SEC.
Without limitation, the expectations with respect to 2022 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding Alliant Energy's financial results, this press release includes reference to certain non-GAAP financial measures.
Alliant Energy included in this press release IPL; WPL; Corporate Services; Utilities and Corporate Services; ATC Holdings; and Non-utility and Parent EPS for the three and six months ended June 30, 2022 and 2021. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends, and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance.
This press release references year-over-year variances in utility electric margins and utility gas margins. Utility electric margins and utility gas margins are non-GAAP financial measures that will be reported and reconciled to the most directly comparable GAAP measure, operating income, in our second quarter 2022 Form 10-Q.
Note: Unless otherwise noted, all "per share" references in this release refer to earnings per diluted share.
ALLIANT ENERGY CORPORATION
EARNINGS SUMMARY (Unaudited)
The following tables provide a summary of Alliant Energy's results for the three months ended June 30:
EPS: | GAAP EPS | |||||
2022 | 2021 | |||||
IPL | $ | 0.35 | $ | 0.35 | ||
WPL | 0.25 | 0.15 | ||||
Corporate Services | 0.01 | 0.01 | ||||
Subtotal for Utilities and Corporate Services | 0.61 | 0.51 | ||||
ATC Holdings | 0.03 | 0.03 | ||||
Non-utility and Parent | (0.01 | ) | 0.03 | |||
Alliant Energy Consolidated | $ | 0.63 | $ | 0.57 |
Earnings (in millions): | GAAP Income (Loss) | |||||
2022 | 2021 | |||||
IPL | $ | 87 | $ | 86 | ||
WPL | 63 | 38 | ||||
Corporate Services | 4 | 4 | ||||
Subtotal for Utilities and Corporate Services | 154 | 128 | ||||
ATC Holdings | 8 | 8 | ||||
Non-utility and Parent | (3 | ) | 8 | |||
Alliant Energy Consolidated | $ | 159 | $ | 144 |
The following tables provide a summary of Alliant Energy's results for the six months ended June 30:
EPS: | GAAP EPS | |||||
2022 |
2021 | |||||
IPL | $ | 0.69 | $ | 0.66 | ||
WPL | 0.62 | 0.49 | ||||
Corporate Services | 0.03 | 0.02 | ||||
Subtotal for Utilities and Corporate Services | 1.34 | 1.17 | ||||
ATC Holdings | 0.07 | 0.07 | ||||
Non-utility and Parent | (0.01 | ) | 0.02 | |||
Alliant Energy Consolidated | $ | 1.40 | $ | 1.26 |
Earnings (in millions): | GAAP Income (Loss) | |||||
2022 | 2021 | |||||
IPL | $ | 173 | $ | 165 | ||
WPL | 156 | 122 | ||||
Corporate Services | 7 | 7 | ||||
Subtotal for Utilities and Corporate Services | 336 | 294 | ||||
ATC Holdings | 17 | 16 | ||||
Non-utility and Parent | (2 | ) | 5 | |||
Alliant Energy Consolidated | $ | 351 | $ | 315 |
ALLIANT ENERGY CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
(in millions, except per share amounts) | |||||||||||||||
Revenues: | |||||||||||||||
Electric utility | $ | 812 | $ | 717 | $ | 1,586 | $ | 1,418 | |||||||
Gas utility | 94 | 69 | 356 | 239 | |||||||||||
Other utility | 13 | 10 | 23 | 23 | |||||||||||
Non-utility | 24 | 21 | 47 | 38 | |||||||||||
943 | 817 | 2,012 | 1,718 | ||||||||||||
Operating expenses: | |||||||||||||||
Electric production fuel and purchased power | 191 | 138 | 359 | 271 | |||||||||||
Electric transmission service | 133 | 121 | 271 | 255 | |||||||||||
Cost of gas sold | 48 | 31 | 216 | 131 | |||||||||||
Other operation and maintenance: | |||||||||||||||
Energy efficiency costs | 13 | 11 | 24 | 16 | |||||||||||
Non-utility Travero | 18 | 14 | 34 | 27 | |||||||||||
Other | 135 | 135 | 262 | 263 | |||||||||||
Depreciation and amortization | 166 | 165 | 332 | 329 | |||||||||||
Taxes other than income taxes | 27 | 26 | 54 | 52 | |||||||||||
731 | 641 | 1,552 | 1,344 | ||||||||||||
Operating income | 212 | 176 | 460 | 374 | |||||||||||
Other (income) and deductions: | |||||||||||||||
Interest expense | 78 | 69 | 152 | 138 | |||||||||||
Equity income from unconsolidated investments, net | (16 | ) | (19 | ) | (32 | ) | (34 | ) | |||||||
Allowance for funds used during construction | (13 | ) | (5 | ) | (24 | ) | (9 | ) | |||||||
Other | - | 2 | 1 | 4 | |||||||||||
49 | 47 | 97 | 99 | ||||||||||||
Income before income taxes | 163 | 129 | 363 | 275 | |||||||||||
Income tax expense (benefit) | 4 | (17 | ) | 12 | (45 | ) | |||||||||
Net income | 159 | 146 | 351 | 320 | |||||||||||
Preferred dividend requirements of IPL | - | 2 | - | 5 | |||||||||||
Net income attributable to Alliant Energy common shareowners | $ | 159 | $ | 144 | $ | 351 | $ | 315 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 250.9 | 250.2 | 250.7 | 250.1 | |||||||||||
Diluted | 251.1 | 250.6 | 251.0 | 250.5 | |||||||||||
Earnings per weighted average common share attributable to Alliant Energy common shareowners: | |||||||||||||||
Basic | $ | 0.63 | $ | 0.58 | $ | 1.40 | $ | 1.26 | |||||||
Diluted | $ | 0.63 | $ | 0.57 | $ | 1.40 | $ | 1.26 |
ALLIANT ENERGY CORPORATION | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||
June 30, 2022 |
December 31, 2021 |
||||
(in millions) | |||||
ASSETS: | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 19 | $ | 39 | |
Other current assets | 1,289 | 1,030 | |||
Property, plant and equipment, net | 15,453 | 14,987 | |||
Investments | 546 | 517 | |||
Other assets | 2,084 | 1,980 | |||
Total assets | $ | 19,391 | $ | 18,553 | |
LIABILITIES AND EQUITY: | |||||
Current liabilities: | |||||
Current maturities of long-term debt | $ | 733 | $ | 633 | |
Commercial paper | 399 | 515 | |||
Other current liabilities | 1,144 | 906 | |||
Long-term debt, net (excluding current portion) | 6,981 | 6,735 | |||
Other liabilities | 3,968 | 3,774 | |||
Equity: | |||||
Alliant Energy Corporation common equity | 6,137 | 5,990 | |||
Noncontrolling interest | 29 | - | |||
Total equity | 6,166 | 5,990 | |||
Total liabilities and equity | $ | 19,391 | $ | 18,553 |
ALLIANT ENERGY CORPORATION | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2022 | 2021 | ||||||
(in millions) | |||||||
Cash flows from operating activities: | |||||||
Cash flows from operating activities excluding accounts receivable sold to a third party | $ | 564 | $ | 468 | |||
Accounts receivable sold to a third party | (264 | ) | (261 | ) | |||
Net cash flows from operating activities | 300 | 207 | |||||
Cash flows used for investing activities: | |||||||
Construction and acquisition expenditures: | |||||||
Utility business | (550 | ) | (426 | ) | |||
Other | (43 | ) | (32 | ) | |||
Cash receipts on sold receivables | 233 | 295 | |||||
Other | (10 | ) | (27 | ) | |||
Net cash flows used for investing activities | (370 | ) | (190 | ) | |||
Cash flows from (used for) financing activities: | |||||||
Common stock dividends | (215 | ) | (203 | ) | |||
Proceeds from issuance of long-term debt | 650 | - | |||||
Payments to retire long-term debt | (304 | ) | (4 | ) | |||
Net change in commercial paper | (116 | ) | 146 | ||||
Contributions from noncontrolling interest | 29 | - | |||||
Other | 6 | 4 | |||||
Net cash flows from (used for) financing activities | 50 | (57 | ) | ||||
Net decrease in cash, cash equivalents and restricted cash | (20 | ) | (40 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 40 | 56 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 20 | $ | 16 |
KEY FINANCIAL AND OPERATING STATISTICS
June 30, 2022 | June 30, 2021 | ||||
Common shares outstanding (000s) | 250,926 | 250,258 | |||
Book value per share | $ | 24.46 | $ | 23.25 | |
Quarterly common dividend rate per share | $ | 0.4275 | $ | 0.4025 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Utility electric sales (000s of megawatt-hours) | |||||||||||
Residential | 1,714 | 1,669 | 3,659 | 3,547 | |||||||
Commercial | 1,525 | 1,467 | 3,137 | 3,027 | |||||||
Industrial | 2,659 | 2,622 | 5,256 | 5,240 | |||||||
Industrial - co-generation customers | 229 | 201 | 464 | 417 | |||||||
Retail subtotal | 6,127 | 5,959 | 12,516 | 12,231 | |||||||
Sales for resale: | |||||||||||
Wholesale | 677 | 643 | 1,398 | 1,329 | |||||||
Bulk power and other | 779 | 844 | 2,004 | 1,229 | |||||||
Other | 15 | 16 | 31 | 35 | |||||||
Total | 7,598 | 7,462 | 15,949 | 14,824 | |||||||
Utility retail electric customers (at June 30) | |||||||||||
Residential | 836,411 | 829,643 | |||||||||
Commercial | 144,760 | 144,119 | |||||||||
Industrial | 2,426 | 2,446 | |||||||||
Total | 983,597 | 976,208 | |||||||||
Utility gas sold and transported (000s of dekatherms) | |||||||||||
Residential | 4,017 | 3,535 | 19,378 | 17,266 | |||||||
Commercial | 3,104 | 2,583 | 12,693 | 11,194 | |||||||
Industrial | 484 | 486 | 1,630 | 1,575 | |||||||
Retail subtotal | 7,605 | 6,604 | 33,701 | 30,035 | |||||||
Transportation / other | 22,382 | 23,056 | 52,260 | 47,746 | |||||||
Total | 29,987 | 29,660 | 85,961 | 77,781 | |||||||
Utility retail gas customers (at June 30) | |||||||||||
Residential | 377,777 | 375,291 | |||||||||
Commercial | 44,602 | 44,337 | |||||||||
Industrial | 337 | 345 | |||||||||
Total | 422,716 | 419,973 | |||||||||
Estimated margin increases from impacts of temperatures (in millions) - | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||
Electric margins | $ | 15 | $ | 17 | $ | 21 | $ | 20 | |||
Gas margins | 2 | - | 6 | 2 | |||||||
Total temperature impact on margins | $ | 17 | $ | 17 | $ | 27 | $ | 22 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2022 | 2021 | Normal | 2022 | 2021 | Normal | ||||||
Heating degree days (HDDs) (a) | |||||||||||
Cedar Rapids, Iowa (IPL) | 837 | 728 | 674 | 4,586 | 4,334 | 4,114 | |||||
Madison, Wisconsin (WPL) | 868 | 760 | 813 | 4,587 | 4,359 | 4,341 | |||||
Cooling degree days (CDDs) (a) | |||||||||||
Cedar Rapids, Iowa (IPL) | 299 | 329 | 244 | 299 | 329 | 246 | |||||
Madison, Wisconsin (WPL) | 276 | 310 | 186 | 276 | 310 | 188 |
(a) | HDDs and CDDs are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDDs and CDDs. |
Media Hotline: | (608) 458-4040 | |
Investor Relations: | Zac Fields (319) 786-8146 |