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Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: March 19, 2019
Exact Name of Registrant
Commission
I.R.S. Employer
as Specified in Its Charter
File Number
Identification No.
Hawaiian Electric Industries, Inc.
1-8503
99-0208097
Hawaiian Electric Company, Inc.
1-4955
99-0040500
State of Hawaii
(State or other jurisdiction of incorporation)
 1001 Bishop Street, Suite 2900, Honolulu, Hawaii  96813 - Hawaiian Electric Industries, Inc. (HEI)
900 Richards Street, Honolulu, Hawaii  96813 - Hawaiian Electric Company, Inc. (Hawaiian Electric)
(Address of principal executive offices and zip code)
 Registrant’s telephone number, including area code:
 (808) 543-5662 - HEI
(808) 543-7771 - Hawaiian Electric
 None
(Former name or former address, if changed since last report.)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule12b-2 of the Securities Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
Hawaiian Electric Industries, Inc. [ ]
 
Hawaiian Electric Company, Inc. [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Hawaiian Electric Industries, Inc. [ ]
 
Hawaiian Electric Company, Inc. [ ]






Item 7.01. Regulation FD Disclosure.
HEI is furnishing its unaudited 2018 Statistical Supplement (see Exhibit 99), which includes certain selected financial information for consolidated HEI, consolidated Hawaiian Electric and American Savings Bank, F.S.B. (ASB), and other selected data.
HEI will post the 2018 Statistical Supplement on its website, www.hei.com, under the headings “Investor Relations,” “SEC Filings” and “Statistical Supplement.”
HEI and Hawaiian Electric 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's and ASB’s press releases, HEI’s and Hawaiian Electric’s 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’s Securities and Exchange Commission (SEC) filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the Public Utilities Commission of the State of Hawaii (PUC) website at dms.puc.hawaii.gov/dms in order to review documents filed with and issued by the PUC. No information on the PUC website is incorporated by reference in this document or in HEI’s and Hawaiian Electric’s other SEC filings.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits
Exhibit 99
HEI 2018 Statistical Supplement

The information furnished in connection with this current report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.









1



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature of the undersigned companies shall be deemed to relate only to matters having reference to such companies and any subsidiaries thereof.

HAWAIIAN ELECTRIC INDUSTRIES, INC.
HAWAIIAN ELECTRIC COMPANY, INC.
(Registrant)
(Registrant)
/s/ Gregory C. Hazelton
/s/ Tayne S. Y. Sekimura
Gregory C. Hazelton
Tayne S. Y. Sekimura
Executive Vice President, Chief Financial
Senior Vice President and
Officer and Treasurer
Chief Financial Officer
 
 
 
 
Date: March 19, 2019
Date: March 19, 2019
 
 



2



EXHIBIT INDEX

Exhibit No.        Description
HEI 2018 Statistical Supplement


3
(Back To Top)

Section 2: EX-99 (EXHIBIT 99)

Exhibit
Exhibit 99397169214_coverpage2018.jpg



Hawaiian Electric Industries, Inc.
2018 Statistical Supplement

TABLE OF CONTENTS
 
 
 
Page
HEI Consolidated
Selected Financial Information
1
Consolidated Statements of Income & Comprehensive Income Information
2
Consolidated Balance Sheets Information
3
Consolidated Statements of Changes in Shareholders' Equity Information
4
Consolidated Statements of Cash Flows Information
5
Consolidated Capital Structure
7
GAAP and Non-GAAP (Core) Earnings and Return on Average Common Equity
8
 
 
Hawaiian Electric Company
Selected Financial Information
9
Consolidated Statements of Income and Retained Earnings Information
10
Consolidated Balance Sheets Information
11
Consolidated Statements of Cash Flows Information
12
Cumulative Preferred Stock Not Subject to Mandatory Redemption
13
Long-term Debt
14
Customer, Sales and Revenue Information
16
Power Supply Information
18
 
 
American Savings Bank
Selected Information
20
Statements of Income Information
21
Balance Sheets Information
22
 
 
Other
State of Hawaii Information
23
Appendix - Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures
24


i



SELECTED FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Years ended December 31
 
2018

 
2017

 
2016

 
2015

 
2014

 
(dollars in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Results of operations
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
2,860,849

 
$
2,555,625

 
$
2,380,654

 
$
2,602,982

 
$
3,239,542

 
Net income for common stock
 
201,774

 
165,297

 
248,256

 
159,877

 
168,129

 
Basic earnings per common share
 
1.85

 
1.52

 
2.30

 
1.50

 
1.65

 
Diluted earnings per common share
 
1.85

 
1.52

 
2.29

 
1.50

 
1.63

 
Dividends per common share
 
1.24

 
1.24

 
1.24

 
1.24

 
1.24

 
Operating income (loss)
 
 
 
 
 
 
 
 
 
 
 
Electric utility
 
$
241,661

 
$
263,524

 
$
290,070

 
$
274,116

 
$
275,768

 
Bank
 
108,235

 
99,536

 
88,227

 
83,812

 
79,295

 
Other
 
(16,540
)
 
(16,827
)
 
(22,459
)
 
(35,375
)
 
(22,463
)
 
 
 
$
333,356

 
$
346,233

 
$
355,838

 
$
322,553

 
$
332,600

 
Assets 1
 
 
 
 
 
 
 
 
 
 
 
Electric utility
 
$
5,967,503

 
$
5,630,613

 
$
5,431,903

 
$
5,166,123

 
$
5,083,589

 
Bank
 
7,027,894

 
6,798,659

 
6,421,357

 
6,014,755

 
5,566,222

 
Other
 
108,654

 
104,888

 
28,721

 
95,053

 
60,900

 
 
 
$
13,104,051

 
$
12,534,160

 
$
11,881,981

 
$
11,275,931

 
$
10,710,711

 
Capital structure 1, 2
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings - other than bank
 
$
73,992

 
$
117,945

 
$

 
$
103,063

 
$
118,972

 
Long-term debt, net - other than bank
 
1,879,641

 
1,683,797

 
1,619,019

 
1,578,368

 
1,498,547

 
Preferred stock of subsidiaries
 
34,293

 
34,293

 
34,293

 
34,293

 
34,293

 
Common stock equity
 
2,162,280

 
2,097,386

 
2,066,753

 
1,927,640

 
1,790,573

 
 
 
 
$
4,150,206

 
$
3,933,421

 
$
3,720,065

 
$
3,643,364

 
$
3,442,385

 
Capital structure ratios 1, 2
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings - other than bank
 
1.8
%
 
3.0
%
 
-- %

 
2.9
%
 
3.5
%
 
Long-term debt, net - other than bank
 
45.3

 
42.8

 
43.5

 
43.3

 
43.5

 
Preferred stock of subsidiaries
 
0.8

 
0.9

 
0.9

 
0.9

 
1.0

 
Common stock equity
 
52.1

 
53.3

 
55.6

 
52.9

 
52.0

 
 
 
 
100.0
%
 
100.0%

 
100.0%

 
100.0%

 
100.0%

 
Key financial ratios
 
 
 
 
 
 
 
 
 
 
 
Market price to book value per common share 1
 
184
%
 
188
%
 
174
%
 
161
%
 
192
%
 
Price earnings ratio 3
 
19.8x

 
23.8x

 
14.4x

 
19.3x

 
20.5x

 
Return on average common equity
 
9.5
%
 
7.9
%
 
12.4
%
 
8.6
%
 
9.6
%
 
Indicated annual yield 1
 
3.4
%
 
3.4
%
 
3.7
%
 
4.3
%
 
3.7
%
 
Dividend payout ratio
 
67
%
 
82
%
 
54
%
 
82
%
 
75
%
 
Full-time employees
 
 
 
 
 
 
 
 
 
 
 
Hawaiian Electric and its subsidiaries
 
2,704

 
2,724

 
2,662

 
2,727

 
2,759

 
ASB
 
1,148

 
1,115

 
1,093

 
1,152

 
1,162

 
Consolidated HEI
 
3,898

 
3,880

 
3,796

 
3,918

 
3,965

 
Note:
This report should be read in conjunction with HEI’s Form 10-K for each year. Financial data for periods prior to January 1, 2016 has been updated to reflect the
 
retrospective adoption of Accounting Standards Update (ASU) No. 2015-03. Financial data for periods prior to December 31, 2018 (but after December 31, 2015) has
 
been updated to reflect the retrospective adoption of ASU No. 2017-07. Financial data for periods prior to December 31, 2018 has been updated to reflect the
 
 
reclassification of contributions in aid of construction balances from liabilities to assets, which reduced the respective balances.
1 
At December 31.
 
 
 
 
 
 
 
 
 
 
 
2 
Excludes ASB's deposit liabilities and other borrowings.
3 
Calculated using December 31 market price per common share divided by diluted earnings per common share.

1



CONSOLIDATED STATEMENTS OF INCOME INFORMATION
 
 
 
 
 
 
 
 
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
Years ended December 31
 
2018

 
2017

 
2016

 
2015

 
2014

(in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
Electric utility
 
$
2,546,525

 
$
2,257,566

 
$
2,094,368

 
$
2,335,166

 
$
2,987,323

Bank
 
314,275

 
297,640

 
285,924

 
267,733

 
252,497

Other
 
49

 
419

 
362

 
83

 
(278
)
     Total revenues
 
2,860,849

 
2,555,625

 
2,380,654

 
2,602,982

 
3,239,542

Expenses
 
 
 
 
 
 
 
 
 
 
Electric utility
 
2,304,864

 
1,994,042

 
1,804,298

 
2,061,050

 
2,711,555

Bank
 
206,040

 
198,104

 
197,697

 
183,921

 
173,202

Other
 
16,589

 
17,246

 
22,821

 
35,458

 
22,185

     Total expenses
 
2,527,493

 
2,209,392

 
2,024,816

 
2,280,429

 
2,906,942

Operating income (loss)
 
 
 
 
 
 
 
 
 
 
Electric utility
 
241,661

 
263,524

 
290,070

 
274,116

 
275,768

Bank
 
108,235

 
99,536

 
88,227

 
83,812

 
79,295

Other
 
(16,540
)
 
(16,827
)
 
(22,459
)
 
(35,375
)
 
(22,463
)
     Total operating income
 
333,356

 
346,233

 
355,838

 
322,553

 
332,600

Merger termination fee
 

 

 
90,000

 

 

Retirement defined benefits expense—other than service costs
 
(5,962
)
 
(7,942
)
 
(7,663
)
 

 

Interest expense, net—other than on deposit liabilities
 
 
 
 
 
 
 
 
 
 
and other bank borrowings
 
(88,677
)
 
(78,972
)
 
(75,803
)
 
(77,150
)
 
(76,352
)
Allowance for borrowed funds used during construction
 
4,867

 
4,778

 
3,144

 
2,457

 
2,579

Allowance for equity funds used during construction
 
10,877

 
12,483

 
8,325

 
6,928

 
6,771

Income before income taxes
 
254,461

 
276,580

 
373,841

 
254,788

 
265,598

Income taxes
 
50,797

 
109,393

 
123,695

 
93,021

 
95,579

Net income
 
203,664

 
167,187

 
250,146

 
161,767

 
170,019

Preferred stock dividends of subsidiaries
 
1,890

 
1,890

 
1,890

 
1,890

 
1,890

Net income for common stock
 
$
201,774

 
$
165,297

 
$
248,256

 
$
159,877

 
$
168,129

Basic earnings per common share
 
$
1.85

 
$
1.52

 
$
2.30

 
$
1.50

 
$
1.65

Diluted earnings per common share
 
$
1.85

 
$
1.52

 
$
2.29

 
$
1.50

 
$
1.63

Weighted-average number of common shares outstanding
 
108,855

 
108,749

 
108,102

 
106,418

 
101,968

Weighted-average shares assuming dilution
 
109,146

 
108,933

 
108,309

 
106,721

 
102,937

 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME INFORMATION
 
 
 
 
 
 
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
Years ended December 31
 
2018

 
2017

 
2016

 
2015

 
2014

(in thousands)
 
 
 
 
 
 
 
 
 
 
Net income for common stock
 
$
201,774

 
$
165,297

 
$
248,256

 
$
159,877

 
$
168,129

Other comprehensive income (loss), net of taxes:
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on available-for-sale investment securities:
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) on available-for-sale investment securities arising during the period, net of taxes
 
(9,472
)
 
(4,370
)
 
(5,699
)
 
(2,334
)
 
5,840

Reclassification adjustment for net realized gains included in net income, net of taxes
 

 

 
(360
)
 

 
(1,715
)
Derivatives qualified as cash flow hedges:
 
 
 
 
 
 
 
 
 
 
Effective portion of foreign currency hedge net unrealized losses, net of tax benefits
 

 

 
(281
)
 

 

Unrealized interest rate hedging loss, net of tax benefit
 
(436
)
 

 

 

 

Reclassification adjustment to net income, net of taxes
 

 
454

 
(119
)
 
235

 
236

Retirement benefit plans:
 
 
 
 
 
 
 
 
 
 
Net gains (losses) arising during the period, net of taxes
 
(28,101
)
 
65,531

 
(43,510
)
 
5,889

 
(234,166
)
Adjustment for amortization of transition obligation, prior service credit and net losses recognized during the period in net periodic benefit cost, net of tax benefits
 
21,015

 
15,737

 
14,518

 
22,465

 
11,344

Reclassification adjustment for impact of D&Os of the PUC included in regulatory assets, net of taxes
 
8,325

 
(78,724
)
 
28,584

 
(25,139
)
 
207,833

Other comprehensive income (loss), net of taxes
 
(8,669
)
 
(1,372
)
 
(6,867
)
 
1,116

 
(10,628
)
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
 
$
193,105

 
$
163,925

 
$
241,389

 
$
160,993

 
$
157,501

Notes: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.
 
 
 
Income statement amounts for periods prior to December 31, 2018 (but after December 31, 2015) have been updated to reflect the retrospective adoption of
 
ASU No. 2017-07. A reconciliation of GAAP to non-GAAP measures is located in the Appendix.

2



CONSOLIDATED BALANCE SHEETS INFORMATION
 
 
 
 
 
 
 
 
 
 
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31
 
2018

 
2017

 
2016

 
2015

 
2014

(in thousands)
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
169,208

 
$
261,881

 
$
278,452

 
$
300,478

 
$
175,542

Accounts receivable and unbilled revenues, net
 
325,672

 
263,209

 
237,950

 
242,766

 
313,696

Available-for-sale investment securities, at fair value
 
1,388,533

 
1,401,198

 
1,105,182

 
820,648

 
550,394

Held-to-maturity investment securities, at amortized cost
 
141,875

 
44,515

 

 

 

Stock in Federal Home Loan Bank, at cost
 
9,958

 
9,706

 
11,218

 
10,678

 
69,302

Loans, net
 
4,792,707

 
4,628,381

 
4,701,977

 
4,570,412

 
4,397,457

Property, plant and equipment, net
 
4,830,118

 
4,460,248

 
4,059,940

 
3,871,571

 
3,682,342

Regulatory assets
 
833,426

 
869,297

 
957,451

 
896,731

 
905,264

Other
 
530,364

 
513,535

 
447,621

 
480,457

 
534,524

Goodwill
 
82,190

 
82,190

 
82,190

 
82,190

 
82,190

 
Total assets
 
$
13,104,051

 
$
12,534,160

 
$
11,881,981

 
$
11,275,931

 
$
10,710,711

 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
Accounts, interest and dividends payable
 
$
243,027

 
$
219,551

 
$
168,504

 
$
164,565

 
$
211,761

Deposit liabilities
 
6,158,852

 
5,890,597

 
5,548,929

 
5,025,254

 
4,623,415

Short-term borrowings - other than bank
 
73,992

 
117,945

 

 
103,063

 
118,972

Other bank borrowings
 
110,040

 
190,859

 
192,618

 
328,582

 
290,656

Long-term debt, net - other than bank
 
1,879,641

 
1,683,797

 
1,619,019

 
1,578,368

 
1,498,547

Deferred income taxes
 
372,518

 
388,430

 
728,806

 
680,877

 
633,570

Regulatory liabilities
 
950,236

 
880,770

 
410,693

 
371,543

 
344,849

Defined benefit pension and other postretirement benefit plans liability
 
538,384

 
509,514

 
638,854

 
589,918

 
632,845

Other
 
580,788

 
521,018

 
473,512

 
471,828

 
531,230

 
Total liabilities
 
10,907,478

 
10,402,481

 
9,780,935

 
9,313,998

 
8,885,845

Preferred stock of subsidiaries - not subject to mandatory redemption
 
34,293

 
34,293

 
34,293

 
34,293

 
34,293

Shareholders' equity
 
 
 
 
 
 
 
 
 
 
Preferred stock
 

 

 

 

 

Common stock
 
1,669,267

 
1,662,491

 
1,660,910

 
1,629,136

 
1,521,297

Retained earnings
 
543,623

 
476,836

 
438,972

 
324,766

 
296,654

Accumulated other comprehensive loss, net of tax benefits
 
(50,610
)
 
(41,941
)
 
(33,129
)
 
(26,262
)
 
(27,378
)
 
Total shareholders' equity
 
2,162,280

 
2,097,386

 
2,066,753

 
1,927,640

 
1,790,573

 
Total liabilities and shareholders' equity
 
$
13,104,051

 
$
12,534,160

 
$
11,881,981

 
$
11,275,931

 
$
10,710,711

Notes:
See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year. Periods prior to January 1, 2016 reflect the retrospective
 
adoption of ASU No. 2015-03. Periods prior to December 31, 2018 have been updated to reflect the reclassification of contributions in aid of construction balances
 
from liabilities to "Property, plant and equipment, net" assets, which reduced the respective balances.

3



CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
 
 
 
 
 
Accumulated
 
 
Unaudited
 
 
 
 
 
 
 
other
 
 
 
 
 
Common stock
 
Retained
 
comprehensive
 
 
(in thousands, except per share amounts)
 
Shares
 
Amount
 
earnings
 
income (loss)
 
Total
Balance, December 31, 2013
 
101,260

 
$
1,488,126

 
$
255,030

 
$
(16,750
)
 
$
1,726,406

Net income for common stock
 

 

 
168,129

 

 
168,129

Other comprehensive loss, net of tax benefits
 

 

 

 
(10,628
)
 
(10,628
)
Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
Partial settlement of equity forward
 
1,000

 
24,873

 

 

 
24,873

Dividend reinvestment and stock purchase plan
 
95

 
2,461

 

 

 
2,461

Retirement savings and other plans
 
210

 
6,816

 

 

 
6,816

Share-based expense and other, net
 

 
(979
)
 

 

 
(979
)
Common stock dividends ($1.24 per share)
 

 

 
(126,505
)
 

 
(126,505
)
Balance, December 31, 2014
 
102,565

 
1,521,297

 
296,654

 
(27,378
)
 
1,790,573

Net income for common stock
 

 

 
159,877

 

 
159,877

Other comprehensive income, net of taxes
 

 

 

 
1,116

 
1,116

Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
Partial settlement of equity forward
 
4,700

 
109,183

 

 

 
109,183

Retirement savings and other plans
 
195

 
5,578

 

 

 
5,578

Share-based expense and other, net
 

 
(6,922
)
 

 

 
(6,922
)
Common stock dividends ($1.24 per share)
 

 

 
(131,765
)
 

 
(131,765
)
Balance, December 31, 2015
 
107,460

 
1,629,136

 
324,766

 
(26,262
)
 
1,927,640

Net income for common stock
 

 

 
248,256

 

 
248,256

Other comprehensive loss, net of tax benefits
 

 

 

 
(6,867
)
 
(6,867
)
Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
Dividend reinvestment and stock purchase plan
 
859

 
26,844

 

 

 
26,844

Retirement savings and other plans
 
264

 
9,298

 

 

 
9,298

Share-based expense and other, net
 

 
(4,368
)
 

 

 
(4,368
)
Common stock dividends ($1.24 per share)
 

 

 
(134,050
)
 

 
(134,050
)
Balance, December 31, 2016
 
108,583

 
1,660,910

 
438,972

 
(33,129
)
 
2,066,753

Net income for common stock
 

 

 
165,297

 

 
165,297

Other comprehensive loss, net of tax benefits
 

 

 

 
(1,372
)
 
(1,372
)
Reclass of AOCI for tax rate reduction impact
 

 

 
7,440

 
(7,440
)
 

Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
Retirement savings and other plans
 
205

 
4,664

 

 

 
4,664

Share-based expense and other, net
 

 
(3,083
)
 

 

 
(3,083
)
Common stock dividends ($1.24 per share)
 

 

 
(134,873
)
 

 
(134,873
)
Balance, December 31, 2017
 
108,788

 
1,662,491

 
476,836

 
(41,941
)
 
2,097,386

Net income for common stock
 

 

 
201,774

 

 
201,774

Other comprehensive loss, net of tax benefits
 

 

 

 
(8,669
)
 
(8,669
)
Issuance of common stock:
 
 
 
 
 
 
 
 
 
 
Retirement savings and other plans
 
91

 
2,650

 

 

 
2,650

Share-based expense and other, net
 

 
4,126

 

 

 
4,126

Common stock dividends ($1.24 per share)
 

 

 
(134,987
)
 

 
(134,987
)
Balance, December 31, 2018
 
108,879

 
$
1,669,267

 
$
543,623

 
$
(50,610
)
 
$
2,162,280

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.


4



CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Years ended December 31
2018

 
2017

 
2016

 
 
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Cash flows from operating activities
 
 
 
 
Net income
 
$
203,664

 
$
167,187

 
$
250,146

Adjustments to reconcile net income
 
 
 
 
 
 
 
to net cash provided by operating activities
 
 
 
 
 
 
 
 
Depreciation of property, plant and equipment
214,036

 
200,658

 
194,273

 
 
Other amortization
 
41,593

 
21,340

 
10,473

 
 
Provision for loan losses
14,745

 
10,901

 
16,763

 
 
Loans originated and purchased, held for sale
 
(109,537
)
 
(115,104
)
 
(236,769
)
 
 
Proceeds from sale of loans, held for sale
 
112,182

 
127,951

 
236,062

 
 
Deferred income taxes
(9,368
)
 
37,835

 
47,118

 
 
Share-based compensation expense
7,792

 
5,404

 
4,789

 
 
Allowance for equity funds used during construction
(10,877
)
 
(12,483
)
 
(8,325
)
 
 
Other
 
(4,219
)
 
(3,324
)
 
(12,422
)
 
 
Changes in assets and liabilities
 
 
 
 
 
 
 
 
Increase in accounts receivable and unbilled revenues, net
 
(64,321
)
 
(12,875
)
 
(898
)
 
 
Increase (decrease) in accounts, interest and dividends payable
 
21,528

 
34,985

 
(9,643
)
 
 
Change in prepaid and accrued income taxes, tax credits and utility revenue taxes
 
29,429

 
20,685

 
39,109

 
 
Increase in defined benefit pension and other postretirement benefit plans
 
20,871

 
882

 
1,587

 
 
Decrease (increase) in fuel oil stock
 
7,054

 
(20,794
)
 
4,786

 
 
Decrease (increase) in regulatory assets
 
9,252

 
(17,256
)
 
(18,273
)
 
 
Change in other assets and liabilities
15,488

 
(25,551
)
 
(23,118
)
Net cash provided by operating activities
499,312

 
420,441

 
495,658

Cash flows from investing activities
 
 
 
 
 
 
Available-for-sale investment securities purchased
(224,335
)
 
(528,379
)
 
(533,956
)
Principal repayments on available-for-sale investment securities
 
218,930

 
220,231

 
219,845

Proceeds from sale of available-for-sale investment securities
 

 

 
16,423

Purchases of held-to-maturity investment securities
(103,184
)
 
(44,515
)
 

Proceeds from repayments or maturities of held-to-maturity investment securities
5,720

 

 

Purchase of stock from Federal Home Loan Bank
(28,292
)
 
(2,868
)
 
(7,773
)
Redemption of stock from Federal Home Loan Bank
28,040

 
4,380

 
7,233

Net decrease (increase) in loans held for investment
(189,352
)
 
15,887

 
(194,042
)
Proceeds from sale of commercial loans
7,149

 
36,760

 
52,299

Proceeds from sale of real estate acquired in settlement of loans
 
589

 
1,019

 
829

Proceeds from sale of real estate held for sale

 

 
1,764

Capital expenditures
 
(537,369
)
 
(495,187
)
 
(330,043
)
Contributions in aid of construction
30,599

 
64,733

 
30,100

Contributions to low income housing investments
(14,499
)
 
(17,505
)
 

Acquisition of business
 

 
(76,323
)
 

Other
 
13,945

 
6,468

 
856

Net cash used in investing activities
$
(792,059
)
 
$
(815,299
)
 
$
(736,465
)
 
 
 
 
 
 
 
 
 
 
 
 
 
                 (Continued on next page)
 

5



CONSOLIDATED STATEMENTS OF CASH FLOWS INFORMATION (Continued)
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Years ended December 31
2018

 
2017

 
2016

 
 
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
Net increase in deposit liabilities
 
$
165,880

 
$
341,668

 
$
523,675

Net increase (decrease) in short-term borrowings
 
 
 
 
 
 
with original maturities of three months or less
 
(18,999
)
 
67,992

 
(103,063
)
Proceeds from issuance of short-term debt
25,000

 
125,000

 

Repayment of short-term debt
 
(50,000
)
 
(75,000
)
 

Net increase (decrease) in retail repurchase agreements
26,556

 
61,776

 
(43,601
)
Proceeds from other bank borrowings
696,000

 
59,500

 
180,835

Repayments of other bank borrowings
 
(701,000
)
 
(123,034
)
 
(272,902
)
Proceeds from issuance of long-term debt
 
250,000

 
532,325

 
115,000

Repayment of long-term debt and funds transferred for redemption
 
 
 
 
 
of special purpose revenue bonds
(53,887
)
 
(465,000
)
 
(75,000
)
Withheld shares for employee taxes on vested share-based compensation
(996
)
 
(3,828
)
 
(2,416
)
Net proceeds from issuance of common stock
 

 

 
13,220

Common stock dividends
 
(134,987
)
 
(134,873
)
 
(117,274
)
Preferred stock dividends of subsidiaries
 
(1,890
)
 
(1,890
)
 
(1,890
)
Other
(1,603
)
 
(6,349
)
 
2,197

Net cash provided by financing activities
200,074

 
378,287

 
218,781

Net decrease in cash and cash equivalents
 
(92,673
)
 
(16,571
)
 
(22,026
)
Cash and cash equivalents, January 1
261,881

 
278,452

 
300,478

Cash and cash equivalents, December 31
 
$
169,208

 
$
261,881

 
$
278,452

Note: See HEI's Consolidated Financial Statements included or incorporated in HEI's Form 10-K for each year.

6



CONSOLIDATED CAPITAL STRUCTURE
 
 
 
 
 
 
 
 
 
 
 
 
 
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31
 
 
2018

 
2017

 
2016

 
2015

 
2014

 
 
(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings - other than bank 1
 
 
$
73,992

 
$
117,945

 
$

 
$
103,063

 
$
118,972

 
 
Long-term debt - other than bank 1
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt of electric utility subsidiaries 2
 
 
1,418,802

 
1,368,479

 
1,319,260

 
1,278,702

 
1,199,025

 
 
Hamakua Energy, LLC 4.02% notes, due 2030
 
 
63,438

 
67,325

 

 

 

 
 
HEI 5.67% senior notes, due 2021
 
 
50,000

 
50,000

 
50,000

 
50,000

 
50,000

 
 
HEI 3.99% senior notes, due 2023
 
 
50,000

 
50,000

 
50,000

 
50,000

 
50,000

 
 
HEI 4.58% senior notes, due 2025
 
 
50,000

 

 

 

 

 
 
HEI 4.72% senior notes, due 2028
 
 
100,000

 

 

 

 

 
 
HEI 2.99% term loan, due 2022
 
 
150,000

 
150,000

 

 

 

 
 
HEI term loan LIBOR + .75%, paid in 2017
 
 

 

 
125,000

 
125,000

 
125,000

 
 
HEI term loan LIBOR + .75%, paid in 2017
 
 

 

 
75,000

 

 

 
 
HEI 4.41% senior notes, paid in 2016
 
 

 

 

 
75,000

 
75,000

 
 
Less HEI and Hamakua Energy, LLC unamortized debt issuance cost
 
 
(2,599
)
 
(2,007
)
 
(241
)
 
(334
)
 
(478
)
 
 
 
 
 
 
1,879,641

 
1,683,797

 
1,619,019

 
1,578,368

 
1,498,547

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock of subsidiaries -
 
 
 
 
 
 
 
 
 
 
 
 
 
not subject to mandatory redemption
 
 
34,293

 
34,293

 
34,293

 
34,293

 
34,293

 
 
Shareholders' equity
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock
 
 

 

 

 

 

 
 
Common stock
 
 
1,669,267

 
1,662,491

 
1,660,910

 
1,629,136

 
1,521,297

 
 
Retained earnings
 
 
543,623

 
476,836

 
438,972

 
324,766

 
296,654

 
 
Accumulated other comprehensive loss, net of tax benefits
 
(50,610
)
 
(41,941
)
 
(33,129
)
 
(26,262
)
 
(27,378
)
 
 
 
 
 
 
2,162,280

 
2,097,386

 
2,066,753

 
1,927,640

 
1,790,573

 
 
 
 
 
 
$
4,150,206

 
$
3,933,421

 
$
3,720,065

 
$
3,643,364

 
$
3,442,385

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LONG-TERM DEBT MATURITIES as of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Hawaiian Electric Industries, Inc. and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019

 
2020

 
2021

 
2022

 
2023

 
Thereafter

 
Total

(in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt - other than bank 1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Electric utilities2
$

 
$
96,000

 
$

 
$
52,000

 
$
100,000

 
$
1,178,546

 
$
1,426,546

 
HEI

 

 
50,000

 
150,000

 
50,000

 
150,000

 
400,000

 
Hamakua Energy, LLC
3,739

 
3,669

 
3,864

 
4,146

 
4,325

 
43,695

 
63,438

 
Less unamortized debt issuance cost
 
 
 
 
 
 
 
 
 
 
 
 
(10,343
)
 
 
$
3,739

 
$
99,669

 
$
53,864

 
$
206,146

 
$
154,325

 
$
1,372,241

 
$