Investor Presentaiton
L
2020 Non-GAAP to 2021 EPS Bridge
16
2020 Non-GAAP Adjusted Diluted EPS
2021 Earnings Drivers (after-tax and per share)
2021 Guidance Bridge
High
Low
$3.35
$3.35
Gross Margin
0.39
OG&A expense
(0.05)
0.54
(0.03)
Property & other tax expense
(0.14)
(0.12)
Depreciation expense
(0.13)
(0.12)
Interest expense
0.01
Other income
0.04
0.05
Incremental tax impact*
(0.01)
(0.02)
Subtotal of anticipated changes
0.10
0.31
2021 EPS guidance range prior to potential equity dilution
Dilution from higher outstanding shares
$3.45
$3.66
(0.05)
(0.06)
EPS guidance range after potential equity dilution
$3.40
$3.60
文
2021 earnings drivers shown above are calculated using a 25.3% effective tax rate. The
incremental tax impact line included above reflects anticipated changes in discrete tax items
(such as tax repairs and meter deductions, production tax credits, and other permanent or
flow-through items) from 2020 actual earnings to 2021 forecast.
We anticipate narrowing the
20 cent guidance range (to the
standard 15 cent range) in the
2nd or 3rd quarter when we have
a better sense Covid-19
impacts.
Non-GAAP 2020 to 2021
midpoint EPS growth rate
of 4.5%.
$2.48 annualized dividend is
expected to be at the upper end
of our 60%-70% targeted payout
of EPS.
Assumptions included in the 2021 Guidance includes, but not limited to, the following major assumptions:
·
•
Normal weather in our electric and natural gas service territories;
Continued Covid-19 related reduction in our commercial and industrial sales volumes, offset in part by an increase in
usage by residential customers through the second quarter of 2021;
A consolidated income tax rate of approximately (2.5%) to +2.5% of pre-tax income; and
Diluted average shares outstanding of approximately 51.5 million to 51.8 million.
Note: Gross Margin, defined as revenues less cost of sales, is a non-GAAP Measure See appendix for additional disclosure.View entire presentation