Investor Presentaiton
L
Pre-Tax Adjustments ($ Millions)
Reported GAAP Pre-Tax Income
Non-GAAP Adjustments to Pre-Tax Income:
Weather
Release of MPSC DGGS deferral
Appendix 63
Non-GAAP Financial Measures (1 of 3)
Use of Non-GAAP Financial Measures - Reconcile to Non-GAAP diluted EPS
Lost revenue recovery related to prior periods
DGGS FERC ALJ initial decision - portion related to 2011
MSTI Impairment
Favorable CELP arbitration decision
Remove hydro acquisition transaction costs
Exclude unplanned hydro earnings
Remove benefit of insurance settlement
QF liability adjustment
Electric tracker disallowance of prior period costs
Transmission impacts (unfavorable hydro conditions)
Settlement of Workers Compensation Claim
Income tax adjustment
13.2
15.2
(14.2)
(7.3)
144.2
S
2011
102.6
2012
2013
2014
2015
$
116.5
S 108.3
S
110.4 S
2016
2017
181.2 $ 156.5 $ 176.1
2018
2019
2020
178.3 $ 182.2
$
(3.0)
8.4
(3.7)
(1.3)
(3.4)
(1.3)
(3.0)
(3.0)
(1.0)
7.2
24.1
(47.5)
6.3
15.4
(8.7)
3.0
3.0
(20.8)
6.1
9.8
(17.5)
12.2
9.9
$ 163.9
(10.1)
(3.6)
9.4
Unplanned Equity Dilution from Hydro transaction
Adjusted Non-GAAP Pre-Tax Income
S
95.5 $
99.1
$ 109.8
$
115.8
S 179.7
169.7
S 172.7 S 168.9
$ 174.9
Tax Adjustments to Non-GAAP Items ($ Millio
2011
2012
2013
2014
2015
92.6 $
98.4 $
94.0
$
120.7
S 151.2
$
2016
164.2
$
2017
162.7
2018
$ 197.0
S
2019
202.1
S
(1.8)
(5.5)
GAAP Net Income
Non-GAAP Adjustments Taxed at 38.5% (08-17) and 25.3% (18-currrent):
Weather
Release of MPSC DGGS deferral
Lost revenue recovery related to prior periods
DGGS FERC ALJ initial decision - portion related to 2011
MSTI Impairment
Favorable CELP arbitration decision
Remove hydro acquisition transaction costs
Exclude unplanned hydro earnings
Remove benefit of insurance settlement
QF liability adjustment
Electric tracker disallowance of prior period costs
5.2
(2.3)
-
(1.9)
(1.9)
(0.6)
4.4
14.8
(29.2)
(0.8)
9.5
(5.4)
8.1
9.3
-
(8.7)
(2.1)
(1.0)
(12.8)
3.8
(13.1)
7.5
Transmission impacts (unfavorable hydro conditions)
1.8
Settlement of Workers Compensation Claim
1.8
Income tax adjustment
(6.2)
(2.2)
(18.5)
(12.5)
(12.8)
(22.8)
Unplanned Equity Dilution from Hydro transaction
Non-GAAP Net Income
S
88.2
$
87.7
$
94.9
S
105.5 S 150.3
$
159.8
$ 160.6
$ 170.1
S 173.8
Non-GAAP Adjustments:
Weather
(0.02)
0.17
2020
155.2
7.3
7.4
$ 169.9
(0.11)
0.14
Non-GAAP Diluted Earnings Per Share
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Diluted Average Shares (Millions)
36.5
37.0
Reported GAAP Diluted earnings per share
S
2.53
2.66 $
38.2
2.46
$
40.4
2.99
47.6
48.5
48.7
50.2
50.8
$
3.17
$
3.39
S
3.34
3.92
$
3.98
50.7
3.06
(0.05)
0.14
(0.05)
0.19
(0.04)
(0.02)
(0.05)
(0.05)
(0.02)
(0.18)
0.12
0.40
(0.79)
0.11
0.24
(0.14)
(0.27)
0.08
(0.26)
0.16
Release of MPSC DGGS deferral
Lost revenue recovery related to prior periods
DGGS FERC ALJ initial decision - portion related to 2011
MSTI Impairment
Favorable CELP arbitration decision
Remove hydro acquisition transaction costs
Exclude unplanned hydro earnings
Remove benefit of insurance settlements & recoveries
QF liability adjustment
Electric tracker disallowance of prior period costs
Transmission impacts (unfavorable hydro conditions)
0.05
Settlement of Workers Compensation Claim
0.05
Income tax adjustment
(0.17)
(0.06)
Unplanned Equity Dilution from Hydro transaction
(0.47)
0.08
(0.26)
(0.25)
(0.45)
Non-GAAP Diluted Earnings Per Share
2.41 $ 2.37
$ 2.50
2.68 $
3.15 $
3.30
$
3.30
3.39
$
3.42 $
3.35
0.15
These materials include financial
information prepared in accordance with
GAAP, as well as other financial
measures, such as Gross Margin and
Adjusted Diluted EPS, that are
considered "non-GAAP financial
measures." Generally, a non-GAAP
financial measure is a numerical
measure of a company's financial
performance, financial position or cash
flows that exclude (or include) amounts
that are included in (or excluded from)
the most directly comparable measure
calculated and presented in accordance
with GAAP. Gross Margin (Revenues
less Cost of Sales) is a non-GAAP
financial measure due to the exclusion of
depreciation from the measure. Gross
Margin is used by us to determine
whether we are collecting the appropriate
amount of energy costs from customers
to allow recovery of operating costs.
Adjusted Diluted EPS is another non-
GAAP measure. The Company believes
the presentation of Adjusted Diluted EPS
is more representative of our normal
earnings than the GAAP EPS due to the
exclusion (or inclusion) of certain impacts
that are not reflective of ongoing
earnings.
The presentation of these non-GAAP
measures is intended to supplement
investors' understanding of our financial
performance and not to replace other
GAAP measures as an indicator of actual
operating performance. Our measures
may not be comparable to other
companies' similarly titled measures.View entire presentation