Toggle SGML Header (+)


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: May 7, 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. [ ]
Securities registered pursuant to 12(b) of the Act:
Registrant
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Hawaiian Electric Industries, Inc.
Common Stock, Without Par Value
HE
New York Stock Exchange
Hawaiian Electric Company, Inc.
Guarantee with respect to 6.50% Cumulative Quarterly Income Preferred Securities Series 2004 (QUIPSSM) of HECO Capital Trust III
HE PRU
New York Stock Exchange





Item 2.02 Results of Operations and Financial Condition.
On May 7, 2019, HEI issued a news release, “HEI Reports First Quarter 2019 Earnings.” This news release is furnished as HEI Exhibit 99.


Item 9.01 Financial Statements and Exhibits.

(d) Exhibits    
 
HEI Exhibit 99
News release, dated May 7, 2019, “HEI Reports First Quarter 2019 Earnings”

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.















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
Senior Vice President and
Financial Officer and Treasurer
Chief Financial Officer
 
 
 
 
Date: May 7, 2019
Date: May 7, 2019
 
 

1



EXHIBIT INDEX

        
Exhibit No.
Description
News release, dated May 7, 2019, “HEI Reports First Quarter 2019 Earnings”


2
(Back To Top)

Section 2: EX-99 (EXHIBIT 99)

Exhibit


HEI Exhibit 99
397826863_heicatalyst2a26.jpg NEWS RELEASE
May 7, 2019
Contact:
Julie R. Smolinski
Telephone: (808) 543-7300
 
Director, Investor Relations & Strategic Planning
           E-mail: [email protected]
 
 
 
 
 
 
HEI REPORTS FIRST QUARTER 2019 EARNINGS

1Q2019 Diluted Earnings Per Share (EPS) of $0.42
Solid Utility Earnings as Renewable Transition Advances
Continued Strong Profitability and Capital Position at Bank
HONOLULU - Hawaiian Electric Industries, Inc. (NYSE - HE) (HEI) today reported consolidated net income for common stock for the first quarter of 2019 of $45.7 million and diluted earnings per share (EPS) of $0.42 compared to $40.2 million and EPS of $0.37 for the first quarter of 2018.
“We are pleased to report solid earnings for the first quarter of 2019 from both our bank and utility,” said Constance H. Lau, president and CEO of HEI.
“In the first quarter, the Public Utilities Commission approved in record time six renewable power purchase agreements that will bring a significant amount of solar-plus-battery-storage projects onto our grids on Oahu, Maui and Hawaii Island. The cooperation among the energy stakeholders, regulators, customers and our companies has continued to keep Hawaii at the forefront of greening our environment while providing reliable, resilient and more affordable electricity for our customers and our economy.”
“At American Savings Bank, in addition to continued healthy performance in the first quarter, the bank is completing the consolidation of its team into its new ASB Campus, which offers new opportunities for the team to work better together for customers and realize operational effectiveness and cost efficiencies,” said Lau.

HAWAIIAN ELECTRIC COMPANY EARNINGS
Hawaiian Electric Company’s1 net income for the first quarter of 2019 was $32.1 million compared to $27.5 million in the first quarter of 2018, primarily driven by the following after-tax items:
_________________

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




Hawaiian Electric Industries, Inc.
May 7, 2019
Page 2

$9 million revenue increase resulting from rate increases at Hawaiian Electric (Oahu) and Maui Electric;
$3 million revenue increase from recovery of the Schofield generation project under the major project interim recovery (MPIR) mechanism;
$2 million higher net income due to the absence of one-time charges incurred in 2018, including the write-off of smart grid costs incurred before the approval of our Grid Modernization Strategy and the one-time rent expense adjustment for existing substation land;
$2 million higher net income due to the Commission granting deferral treatment and recovery for certain previously-incurred expenses to modify existing generating units on Maui to run at lower loads in order to accept more renewable generation;
$1 million revenue increase from the first half of performance incentive mechanism (PIM) rewards resulting from Commission approval of six new solar-plus-storage power purchase agreements; and
$1 million revenue increase from pole attachment fees resulting from the pole ownership agreement announced in 2018.
These items were partially offset by the following after-tax items:
$11 million higher O&M expenses2 compared to 2018, primarily due to the reset of pension costs included in rates as part of rate case decisions, higher costs for continued clean up of asset management data after go-live of our new enterprise resource planning system, and higher personnel expenses (medical premium, executive compensation, and retirement-related expenses);
$3 million higher depreciation expense as a result of increasing investments for the integration of more renewable energy, improved customer reliability and greater system efficiency; and
$1 million lower net income from lower AFUDC and higher interest expense.

AMERICAN SAVINGS BANK EARNINGS
American Savings Bank’s (American) first quarter 2019 net income was $20.8 million compared to $21.8 million in the fourth, or linked, quarter of 2018 and $19.0 million in the first quarter of 2018.

_________________

2 Excludes net income neutral expenses covered by surcharges or by third parties. See "Explanation of HEI's Use of Certain Unaudited Non-GAAP Measures" and related reconciliation accompanying this release.




Hawaiian Electric Industries, Inc.
May 7, 2019
Page 3
The net income variance in the first quarter of 2019 compared to the fourth quarter of 2018 was primarily driven by favorable credit events that reduced the provision for loan losses in the fourth quarter of 2018 and additional reserves required for two loans in the commercial and commercial real estate portfolios in the first quarter of 2019. The higher provision for loan losses in the first quarter of 2019 was partially offset by proceeds from bank-owned life insurance.
Compared to the first quarter of 2018, the $1.8 million higher net income was primarily driven by higher yields on earning assets combined with funding costs that have remained relatively low and stable. Noninterest expense in the first quarter of 2019 included new depreciation and occupancy costs of $1.3 million related to the new campus building while still including the costs of four properties being vacated, and higher compensation and employee benefit expenses of $1.1 million.
Total loans were $4.9 billion at March 31, 2019, up $14.6 million or 1.2% annualized from December 31, 2018. The increase in total loans was driven mainly by increases in residential loans of $16.5 million, and increases in home equity loans of $17.4 million, partly offset by declines within the commercial and commercial real estate portfolios of $11.7 million and $4.4 million, respectively.
Total deposits were $6.2 billion at March 31, 2019, an increase of $46.8 million or 3.04% annualized from December 31, 2018. Low-cost core deposits increased $94 million or 7.1% annualized from December 31, 2018. The average cost of funds was 0.31% for the first quarter of 2019, up 3 basis points from the linked quarter and up 8 basis points from the prior year quarter.
American’s return on average equity was 13.1% in the first quarter of 2019 compared to 14.1% in the fourth quarter of 2018 and 12.6% in the prior year quarter. Return on average assets was 1.18% in the first quarter of 2019 compared to 1.25% in the fourth quarter of 2018 and 1.12% in the same quarter last year.
Please refer to American’s news release issued on April 30, 2019 for additional information on American.

HOLDING AND OTHER COMPANIES
The holding and other companies’ net loss was $7.3 million in the first quarter of 2019 compared to $6.2 million in the prior year quarter. The higher net loss was primarily driven by higher interest expense resulting from an increase in long-term debt drawn in the fourth quarter of 2018 at higher fixed rates.  




Hawaiian Electric Industries, Inc.
May 7, 2019
Page 4
BOARD DECLARES QUARTERLY DIVIDEND
On May 6, 2019, the board of directors maintained HEI’s quarterly cash dividend of $0.32 per share, payable on June 12, 2019, to shareholders of record at the close of business on May 23, 2019 (ex-dividend date is May 22, 2019). The dividend is equivalent to an annual rate of $1.28 per share.
Dividends have been paid on an uninterrupted basis since 1901. At the indicated annual dividend rate and based on the closing price per share on May 6, 2019 of $41.69, HEI’s dividend yield is 3.1%.

WEBCAST AND CONFERENCE CALL TO DISCUSS EARNINGS AND EPS GUIDANCE
Hawaiian Electric Industries, Inc. will conduct a webcast and conference call to review its first quarter 2019 earnings and 2019 EPS guidance on Tuesday, May 7, 2019, at 7:30 a.m. Hawaii time (1:30 p.m. Eastern time).
Interested parties within the United States may listen to the conference by calling (844) 834-0652 and international parties may listen to the conference by calling (412) 317-5198 or by accessing the webcast on HEI’s website under the “Investor Relations” section, sub-heading “News and Events.”  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/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 Company’s SEC filings.
An on-line replay of the May 7, 2019 webcast will be available on HEI’s website beginning about two hours after the event. Replays of the conference call will also be available approximately two hours after the event through May 21, 2019 by dialing (877) 344-7529 or (412) 317-0088 and entering passcode: 10129956.





Hawaiian Electric Industries, Inc.
May 7, 2019
Page 5

HEI supplies power to approximately 95% of Hawaii’s population through its electric utilities, Hawaiian Electric Company, Hawaii Electric Light Company, Inc. and Maui Electric Company, Limited; 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; and helps advance Hawaii’s clean energy and sustainability goals through investments by its non-regulated subsidiary, Pacific Current, LLC.

NON-GAAP MEASURES
See “Explanation of HEI’s Use of Certain Unaudited Non-GAAP Measures” and related reconciliations on page 9 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 “will,” “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, political 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 “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2018 and HEI’s other 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.
##




Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
 
 
Three months ended March 31
(in thousands, except per share amounts)
 
2019
 
2018
Revenues
 
 
 
 
Electric utility
 
$
578,495

 
$
570,427

Bank
 
83,052

 
75,419

Other
 
68

 
28

Total revenues
 
661,615

 
645,874

Expenses
 
 
 
 
Electric utility
 
521,935

 
519,058

Bank
 
56,930

 
50,532

Other
 
4,813

 
4,395

Total expenses
 
583,678

 
573,985

Operating income (loss)
 
 
 
 
Electric utility
 
56,560

 
51,369

Bank
 
26,122

 
24,887

Other
 
(4,745
)
 
(4,367
)
Total operating income
 
77,937

 
71,889

Retirement defined benefits expense—other than service costs
 
(763
)
 
(1,833
)
Interest expense, net—other than on deposit liabilities and other bank borrowings
 
(23,123
)
 
(21,518
)
Allowance for borrowed funds used during construction
 
1,078

 
1,444

Allowance for equity funds used during construction
 
2,910

 
3,294

Income before income taxes
 
58,039

 
53,276

Income taxes
 
11,878

 
12,556

Net income
 
46,161

 
40,720

Preferred stock dividends of subsidiaries
 
473

 
473

Net income for common stock
 
$
45,688

 
$
40,247

Basic earnings per common share
 
$
0.42

 
$
0.37

Diluted earnings per common share
 
$
0.42

 
$
0.37

Dividends declared per common share
 
$
0.32

 
$
0.31

Weighted-average number of common shares outstanding
 
108,913

 
108,818

Weighted-average shares assuming dilution
 
109,268

 
109,024

Net income (loss) for common stock by segment
 
 
 
 
Electric utility
 
$
32,126

 
$
27,475

Bank
 
20,839

 
18,960

Other
 
(7,277
)
 
(6,188
)
Net income for common stock
 
$
45,688

 
$
40,247

Comprehensive income attributable to Hawaiian Electric Industries, Inc.
 
$
54,929

 
$
27,474

Return on average common equity (twelve months ended)1
 
9.7
%
 
8.2
%
This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
1 On a core basis, 2019 and 2018 returns on average common equity (twelve months ended March 31) were 9.7% and 8.9%, respectively.  See reconciliation of GAAP to non-GAAP measures.

6



Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
 
 
Three months ended March 31
(dollars in thousands, except per barrel amounts)
 
2019
 
2018
Revenues
 
$
578,495

 
$
570,427

Expenses
 
 
 
 
Fuel oil
 
160,609

 
166,968

Purchased power
 
134,445

 
139,910

Other operation and maintenance
 
118,130

 
107,610

Depreciation
 
53,947

 
50,466

Taxes, other than income taxes
 
54,804

 
54,104

Total expenses
 
521,935

 
519,058

Operating income
 
56,560

 
51,369

Allowance for equity funds used during construction
 
2,910

 
3,294

Retirement defined benefits expense—other than service costs
 
(703
)
 
(1,264
)
Interest expense and other charges, net
 
(17,986
)
 
(17,694
)
Allowance for borrowed funds used during construction
 
1,078

 
1,444

Income before income taxes
 
41,859

 
37,149

Income taxes
 
9,234

 
9,175

Net income
 
32,625

 
27,974

Preferred stock dividends of subsidiaries
 
229

 
229

Net income attributable to Hawaiian Electric
 
32,396

 
27,745

Preferred stock dividends of Hawaiian Electric
 
270

 
270

Net income for common stock
 
$
32,126

 
$
27,475

Comprehensive income attributable to Hawaiian Electric
 
$
32,150

 
$
27,506

OTHER ELECTRIC UTILITY INFORMATION
 
 
 
 
Kilowatthour sales (millions)
 
 
 
 
   Hawaiian Electric
 
1,424

 
1,497

   Hawaii Electric Light
 
245

 
257

   Maui Electric
 
247

 
258

 
 
1,916

 
2,012

Average fuel oil cost per barrel
 
$
80.39

 
$
80.68

Return on average common equity (twelve months ended)1
 
7.8
%
 
6.9
%
This information should be read in conjunction with the consolidated financial statements and the notes thereto in Hawaiian Electric filings with the SEC. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.
1 Simple average. On a core basis, 2019 and 2018 returns on average common equity (twelve months ended March 31) were 7.8% and 7.4%.  See reconciliation of GAAP to non-GAAP measures.




7



American Savings Bank, F.S.B.
STATEMENTS OF INCOME DATA
(Unaudited)
 
 
Three months ended 
(in thousands)
 
March 31, 2019
 
December 31, 2018
 
March 31, 2018
Interest and dividend income
 
 

 
 

 
 

Interest and fees on loans
 
$
57,860

 
$
57,145

 
$
52,800

Interest and dividends on investment securities
 
10,628

 
10,632

 
9,202

Total interest and dividend income
 
68,488

 
67,777

 
62,002

Interest expense
 
 

 
 
 
 
Interest on deposit liabilities
 
4,252

 
4,115

 
2,957

Interest on other borrowings
 
528

 
255

 
496

Total interest expense
 
4,780

 
4,370

 
3,453

Net interest income
 
63,708

 
63,407

 
58,549

Provision for loan losses
 
6,870

 
2,408

 
3,541

Net interest income after provision for loan losses
 
56,838

 
60,999

 
55,008

Noninterest income
 
 

 
 
 
 
Fees from other financial services
 
4,562

 
4,996

 
4,654

Fee income on deposit liabilities
 
5,078

 
5,530

 
5,189

Fee income on other financial products
 
1,593

 
1,977

 
1,654

Bank-owned life insurance
 
2,259

 
390

 
871

Mortgage banking income
 
614

 
94

 
613

Other income, net
 
458

 
492

 
436

Total noninterest income
 
14,564

 
13,479

 
13,417

Noninterest expense
 
 

 
 
 
 
Compensation and employee benefits
 
25,512

 
26,340

 
24,440

Occupancy
 
4,670

 
4,236

 
4,280

Data processing
 
3,738

 
3,681

 
3,464

Services
 
2,426

 
2,287

 
3,047

Equipment
 
2,064

 
1,801

 
1,728

Office supplies, printing and postage
 
1,360

 
1,580

 
1,507

Marketing
 
990

 
844

 
645

FDIC insurance
 
626

 
635

 
713

Other expense
 
3,854

 
4,341

 
4,101

Total noninterest expense
 
45,240

 
45,745

 
43,925

Income before income taxes
 
26,162

 
28,733

 
24,500

Income taxes
 
5,323

 
6,966

 
5,540

Net income
 
$
20,839

 
$
21,767

 
$
18,960

Comprehensive income
 
$
27,091

 
$
35,446

 
$
6,885

OTHER BANK INFORMATION (annualized %, except as of period end)
 
 
 
 
Return on average assets
 
1.18

 
1.25

 
1.12

Return on average equity
 
13.09

 
14.08

 
12.58

Return on average tangible common equity
 
15.03

 
16.23

 
14.57

Net interest margin
 
3.99

 
3.95

 
3.76

Efficiency ratio
 
57.80

 
59.50

 
61.04

Net charge-offs to average loans outstanding
 
0.39

 
0.37

 
0.28

As of period end
 
 
 
 
 
 
Nonaccrual loans to loans receivable held for investment
 
0.83

 
0.56

 
0.53

Allowance for loan losses to loans outstanding
 
1.12

 
1.08

 
1.14

Tangible common equity to tangible assets
 
8.1

 
8.0

 
7.7

Tier-1 leverage ratio
 
8.7

 
8.7

 
8.6

Total capital ratio
 
13.9

 
13.9

 
14.0

Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions)
 
$
18.0

 
$
14.0

 
$
10.9

This information should be read in conjunction with the consolidated financial statements and the notes thereto in HEI filings with the SEC. Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year.

8



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 HEI and the utility. Management believes these non-GAAP measures provide useful information and are a better indicator of the companies’ core operating activities given the non-recurring nature of certain items. 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 GAAP1 earnings to non-GAAP core earnings and the adjusted return on average common equity (ROACE) for HEI and the utility.
The reconciling adjustments from GAAP earnings to core earnings exclude the 2017 impact of the federal tax reform act due to the adjustment of the deferred tax balances and the $1,000 employee bonuses paid by the bank related to federal tax reform. Management does not consider these items to be representative of the company’s fundamental core earnings. Management has shown adjusted non-GAAP (core) net income, adjusted non-GAAP (core) diluted earnings per common share and adjusted non-GAAP (core) ROACE in order to provide better comparability of ROACE between periods.
The accompanying table also provides the calculation of utility GAAP other operation and maintenance (O&M) expense adjusted for “O&M-related net income neutral items,” which are O&M expenses covered by specific surcharges or by third parties. These “O&M-related net income neutral items” are grossed-up in revenue and expense and do not impact net income.
RECONCILIATION OF GAAP1 TO NON-GAAP MEASURES
 
 
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
Unaudited
Twelve months ended March 31
 
2019
2018
HEI CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE) (simple average)
 
 
Based on GAAP
9.7
%
8.2
%
Based on non-GAAP (core)2
9.7
%
8.9
%
 
 
 
RECONCILIATION OF GAAP1 TO NON-GAAP MEASURES
 
Hawaiian Electric Company, Inc. (Hawaiian Electric) and Subsidiaries
Unaudited
Twelve months ended March 31
 
2019
2018
HAWAIIAN ELECTRIC CONSOLIDATED RETURN ON AVERAGE COMMON EQUITY (ROACE)
(simple average)
 
 
Based on GAAP
7.8
%
6.9
%
Based on non-GAAP (core)2
7.8
%
7.4
%
 
 
 
 
Three months ended March 31
($ in millions)
2019
2018
HAWAIIAN ELECTRIC CONSOLIDATED OTHER OPERATION AND MAINTENANCE (O&M) EXPENSE
 
 
GAAP (as reported)
$
118.1

$
107.6

Excluding other O&M-related net income neutral items3
0.1

0.3

Non-GAAP (Adjusted other O&M expense)
$
118.0

$
107.3

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. For the twelve months ended March 31, 2018, core net income for HEI and Hawaiian Electric includes adjustments of $14 million and $9 million, respectively, which principally relate to the 2017 impact of lower rates under the federal tax reform act on deferred tax balances.
3  Expenses covered by surcharges or by third parties recorded in revenues


9
(Back To Top)