-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UC7uMUVzCpnAwDH4CUUJXBvTzS2TqDi7YYm7nOP656HFQlhfzITKPaPjqeoNSe49 kAFuZMgkNJQYjJzVuXd5BQ== 0000898430-01-501424.txt : 20010725 0000898430-01-501424.hdr.sgml : 20010725 ACCESSION NUMBER: 0000898430-01-501424 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010723 ITEM INFORMATION: FILED AS OF DATE: 20010724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWAIIAN ELECTRIC INDUSTRIES INC CENTRAL INDEX KEY: 0000354707 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 990208097 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08503 FILM NUMBER: 1686924 BUSINESS ADDRESS: STREET 1: 900 RICHARDS ST CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 8085435662 MAIL ADDRESS: STREET 1: 900 RICHARDS STREET CITY: HONOLULU STATE: HI ZIP: 96813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAWAIIAN ELECTRIC CO INC CENTRAL INDEX KEY: 0000046207 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 990040500 STATE OF INCORPORATION: HI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-04955 FILM NUMBER: 1686925 BUSINESS ADDRESS: STREET 1: 900 RICHARDS ST CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 8085437771 MAIL ADDRESS: STREET 1: 900 RICHARDS STREET CITY: HONOLULU STATE: HI ZIP: 96813 FORMER COMPANY: FORMER CONFORMED NAME: HAWAIIAN ELECTRIC CO LTD DATE OF NAME CHANGE: 19670212 8-K 1 d8k.txt FORM 8-K ================================================================================ 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: July 23, 2001 ================================================================================ 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) 900 Richards Street, Honolulu, Hawaii 96813 --------------------------------------------------- (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (808) 543-5662 - Hawaiian Electric Industries, Inc. (HEI) (808) 543-7771 - Hawaiian Electric Company, Inc. (HECO) None ------------------------------------------------------------ (Former name or former address, if changed since last report.) ================================================================================ Item 5. Other Events News release - ------------ On July 23, 2001, HEI issued the following news release: HAWAIIAN ELECTRIC INDUSTRIES, INC. REPORTS FIRST QUARTER 2001 EARNINGS HONOLULU -- Hawaiian Electric Industries, Inc. (NYSE - HE) today reported net income for the three months ended June 30, 2001 of $25.6 million, or 76 cents per share, compared with $19.1 million, or 59 cents per share in the same quarter of 2000. For the six months ended June 30, 2001, net income was $53.3 million, or $1.60 per share, compared with $48.1 million, or $1.49 per share in the same period last year. "We had a good second quarter. Earnings were up compared with the same quarter last year due to an 8.6% increase in savings bank net income and contraction of our international operations," said Robert F. Clarke, HEI chairman, president and chief executive officer. Electric utility net income during the quarter was $22.7 million versus $24.0 million in the same quarter last year. Net income for the six months was $44.1 million versus $47.7 million in the same period of 2000. "Warmer weather boosted kilowatthour sales by 1.4% for the quarter despite visitor arrivals in April and May declining slightly from 2000's record highs. However, purchase power expenses were higher for the quarter due to greater availability of purchased power in the supply mix as a result of shorter overhaul schedules and maintenance downtime by independent power producers (IPPs)," said Clarke. Savings bank net income in the second quarter was $10.2 million compared to $9.4 million in the same quarter last year. Net income for the six months was $22.1 million versus $20.6 million in the same period of 2000. "Our savings bank turned in a strong performance this quarter. Although personnel and technology costs were higher compared with the same quarter last year, the bank was able to increase its second quarter earnings by 8.6% due to higher net interest income and fee income," said Clarke. The increase in the bank's net interest income was due in part to slightly higher average interest earning assets, partially offset by a decline in the bank's interest rate spread - the difference between the yield on earning assets and the cost of funds. Increased mortgage banking activity and credit card interchange fees lifted fee income in the second quarter, as well as fewer losses from investing activities. The net loss for the international power operations during the quarter was $0.9 million compared to $8.9 million in the same quarter last year. The net loss for the six months was $0.8 million versus $9.9 million in the same period of 2000. 1 The net loss from international power for the quarter and six months ended June 30, 2000 included $6.4 million of net losses from its investment in East Asia Power Resources Corporation, which was written off in December 2000. HEI is a diversified holding company. Its core businesses are electric utilities, a savings bank and an international power subsidiary. ### Forward-looking statements This release may contain "forward-looking statements," that are subject to risks and uncertainties. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions, and/or include words such as expects, anticipates, intends, plans, believes, predicts, estimates or similar expressions. Forward-looking statements in this release should be read in conjunction with "Forward-looking statements" set forth on page v of HEI's Form 10-Q for the quarter ended March 31, 2001 (incorporated by reference herein) that discusses important factors that could cause HEI's results to differ materially from those anticipated in such statements. Forward-looking statements speak only as of the date of this release. 2 Hawaiian Electric Industries, Inc. and subsidiaries CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three months Six months Twelve months (in thousands, ended June 30, ended June 30, ended June 30, except per share amounts) 2001 2000 2001 2000 2001 2000 - ----------------------------------------------------------------------------------------------------------------------------------- Revenues Electric utility $ 313,651 $ 307,845 $ 632,074 $ 597,250 $ 1,311,994 $ 1,162,391 Savings bank 112,250 108,699 228,004 218,966 459,920 426,840 International power 1,455 (4,163) 2,985 (2,700) (7,602) (560) Other 1,438 755 598 1,495 3,362 27,695 ----------- ----------- ----------- ----------- ----------- ----------- 428,794 413,136 863,661 815,011 1,767,674 1,616,366 ----------- ----------- ----------- ----------- ----------- ----------- Expenses Electric utility 263,623 256,230 534,036 494,005 1,124,110 969,669 Savings bank 94,678 92,384 190,283 183,461 387,663 361,903 International power 1,832 4,423 2,579 6,518 84,960 11,277 Other 4,338 2,973 6,723 5,699 10,882 27,060 ----------- ----------- ----------- ----------- ----------- ----------- 364,471 356,010 733,621 689,683 1,607,615 1,369,909 ----------- ----------- ----------- ----------- ----------- ----------- Operating income (loss) Electric utility 50,028 51,615 98,038 103,245 187,884 192,722 Savings bank 17,572 16,315 37,721 35,505 72,257 64,937 International power (377) (8,586) 406 (9,218) (92,562) (11,837) Other (2,900) (2,218) (6,125) (4,204) (7,520) 635 ----------- ----------- ----------- ----------- ----------- ----------- 64,323 57,126 130,040 125,328 160,059 246,457 ----------- ----------- ----------- ----------- ----------- ----------- Interest expense- other than savings bank (20,297) (20,156) (40,302) (39,228) (79,695) (74,971) Allowance for borrowed funds used during construction 511 722 1,187 1,413 2,696 2,750 Preferred stock dividends of subsidiaries (501) (506) (1,003) (1,004) (2,006) (2,013) Preferred securities distributions of trust subsidiaries (4,009) (4,009) (8,018) (8,018) (16,035) (16,036) Allowance for equity funds used during construction 955 1,328 2,220 2,597 5,003 4,799 ----------- ----------- ----------- ----------- ----------- ----------- Income from continuing operations before income taxes 40,982 34,505 84,124 81,088 70,022 160,986 Income taxes 15,394 15,409 30,791 33,016 19,017 63,530 ----------- ----------- ----------- ----------- ----------- ----------- Income from continuing operations 25,588 19,096 53,333 48,072 51,005 97,456 Discontinued operations- net gain on disposal -- -- -- -- -- 3,953 ----------- ----------- ----------- ----------- ----------- ----------- Net income $ 25,588 $ 19,096 $ 53,333 $ 48,072 $ 51,005 $ 101,409 =========== =========== =========== =========== =========== =========== Per common share Basic earnings Continuing operations $ 0.76 $ 0.59 $ 1.60 $ 1.49 $ 1.54 $ 3.02 Discontinued operations -- -- -- -- -- 0.12 ----------- ----------- ----------- ----------- ----------- ----------- $ 0.76 $ 0.59 $ 1.60 $ 1.49 $ 1.54 $ 3.14 =========== =========== =========== =========== =========== =========== Diluted earnings Continuing operations $ 0.76 $ 0.59 $ 1.59 $ 1.48 $ 1.54 $ 3.01 Discontinued operations -- -- -- -- -- 0.12 ----------- ----------- ----------- ----------- ----------- ----------- $ 0.76 $ 0.59 $ 1.59 $ 1.48 $ 1.54 $ 3.13 =========== =========== =========== =========== =========== =========== Dividends $ 0.62 $ 0.62 $ 1.24 $ 1.24 $ 2.48 $ 2.48 =========== =========== =========== =========== =========== =========== Weighted-average number of common shares outstanding 33,481 32,403 33,321 32,335 33,035 32,271 =========== =========== =========== =========== =========== =========== Adjusted weighted-average shares 33,646 32,542 33,477 32,457 33,172 32,396 =========== =========== =========== =========== =========== =========== Income (loss) from continuing operations by segment Electric utility $ 22,716 $ 24,014 $ 44,141 $ 47,739 $ 83,688 $ 86,656 Savings bank 10,207 9,396 22,082 20,617 42,095 38,447 International power (907) (8,863) (782) (9,890) (95,044) (12,753) Other (6,428) (5,451) (12,108) (10,394) 20,266 (14,894) ----------- ----------- ----------- ----------- ----------- ----------- Income from continuing operations $ 25,588 $ 19,096 $ 53,333 $ 48,072 $ 51,005 $ 97,456 =========== =========== =========== =========== =========== ===========
This information should be read in conjunction with the consolidated financial statements and the notes thereto incorporated by reference in HEI's Annual Report on SEC Form 10-K for the year ended December 31, 2000 and the consolidated financial statements and the notes thereto in HEI's Quarterly Report on SEC Form 10-Q for the quarters ended March 31, 2001 and June 30, 2001 (when filed). Results of operations for interim periods are not necessarily indicative of results to be expected for future interim periods or the full year. 3 HAWAIIAN ELECTRIC INDUSTRIES, INC. SUPPLEMENTAL DATA TO 2ND QUARTER 2001 EARNINGS RELEASE (Unaudited)
Hawaiian Electric Company, Inc. (HECO) and subsidiaries Three months ended Six months ended Consolidated Statements of Income June 30, June 30, - ------------------------------------------------------------------ ---------------------- ---------------------- (in thousands) 2001 2000 2001 2000 --------- --------- --------- --------- Operating revenues $ 312,455 $ 306,483 $ 629,748 $ 594,904 --------- --------- --------- --------- Operating expenses Fuel oil 82,085 91,092 170,330 166,247 Purchased power 83,481 70,444 165,397 140,670 Other operation 30,096 27,464 59,870 55,205 Maintenance 13,015 13,622 28,212 26,155 Depreciation 25,363 24,330 49,972 48,664 Taxes, other than income taxes 29,426 29,005 59,917 56,366 Income taxes 14,362 15,201 27,966 30,394 --------- --------- --------- --------- 277,828 271,158 561,664 523,701 --------- --------- --------- --------- Operating income 34,627 35,325 68,084 71,203 --------- --------- --------- --------- Other income Allowance for equity funds used during construction 955 1,328 2,220 2,597 Other net 960 1,138 1,937 1,713 --------- --------- --------- --------- 1,915 2,466 4,157 4,310 --------- --------- --------- --------- Income before interest and other charges 36,542 37,791 72,241 75,513 --------- --------- --------- --------- Interest and other charges Interest on long-term debt 10,072 9,920 20,001 19,852 Amortization of net bond premium and expense 507 525 1,037 967 Other interest charges 1,340 1,635 3,413 3,532 Allowance for borrowed funds used during construction (511) (722) (1,187) (1,413) Preferred stock dividends of subsidiaries 229 230 458 458 Preferred securities distributions of trust subsidiaries 1,919 1,919 3,838 3,838 --------- --------- --------- --------- 13,556 13,507 27,560 27,234 --------- --------- --------- --------- Income before preferred stock dividends of HECO 22,986 24,284 44,681 48,279 Preferred stock dividends of HECO 270 270 540 540 --------- --------- --------- --------- Net income for common stock $ 22,716 $ 24,014 $ 44,141 $ 47,739 ========= ========= ========= ========= Other electric utility information - ---------------------------------- Kilowatthour sales (millions) 2,298 2,266 4,539 4,469 Cooling degree days (Oahu) 1,223 1,207 2,133 2,035
4 Hawaiian Electric Industries, Inc. Supplemental Data to 2nd Quarter Earnings Release Page 2
Three months ended Six months ended American Savings Bank, F.S.B. and subsidiaries June 30, June 30, ---------------------- ---------------------- Consolidated Income statement data 2001 2000 2001 2000 - --------------------------------------------------------------------------- --------- --------- --------- --------- (in thousands) Interest income $ 102,591 $ 103,276 $ 210,192 $ 205,784 Interest expense 56,812 58,334 117,312 114,052 --------- --------- --------- --------- Net interest income 45,779 44,942 92,880 91,732 Provision for loan losses (3,000) (3,400) (6,000) (6,400) Other income 9,659 5,423 17,812 13,182 Operating, administrative and general expenses (34,866) (30,650) (66,971) (63,009) --------- --------- --------- --------- Operating income 17,572 16,315 37,721 35,505 Minority interest 55 53 114 110 Income taxes 5,958 5,510 12,820 12,072 --------- --------- --------- --------- Income before preferred stock dividends 11,559 10,752 24,787 23,323 Preferred stock dividends 1,352 1,356 2,705 2,706 --------- --------- --------- --------- Net income $ 10,207 $ 9,396 $ 22,082 $ 20,617 ========= ========= ========= ========= Interest rate spread (%) 3.07 3.18 3.08 3.19
5 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/ Curtis Y. Harada /s/ Richard A. von Gnechten - --------------------------------- --------------------------------- Curtis Y. Harada Richard A. von Gnechten Controller Financial Vice President of HECO (Principal Accounting Officer of HEI) (Principal Financial Officer of HECO) Date: July 24, 2001 Date: July 24, 2001 6 -----END PRIVACY-ENHANCED MESSAGE-----