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SPIRE INC 10-Q 2017
Document

 
 
 
 
 

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

FORM 10-Q
(Mark One)
[ X ]
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2017
 
OR
[ ]
TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission
File Number
 
Name of Registrant, Address of Principal Executive Offices and Telephone Number
 
State of Incorporation
 
I.R.S. Employer Identification Number
1-16681
 
Spire Inc.
700 Market Street
St. Louis, MO 63101
314-342-0500
 
Missouri
 
74-2976504
1-1822
 
Laclede Gas Company
700 Market Street
St. Louis, MO 63101
314-342-0500
 
Missouri
 
43-0368139
2-38960
 
Alabama Gas Corporation
2101 6th Avenue North
Birmingham, AL 35203
205-326-8100
 
Alabama
 
63-0022000

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report) and (2) has been subject to such filing requirements for the past 90 days.
Spire Inc.
 
Yes [ X ]
 
No [ ]
Laclede Gas Company
 
Yes [ X ]
 
No [ ]
Alabama Gas Corporation
 
Yes [ X ]
 
No [ ]

Indicate by check mark whether each registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Spire Inc.
 
Yes [ X ]
 
No [ ]
Laclede Gas Company
 
Yes [ X ]
 
No [ ]
Alabama Gas Corporation
 
Yes [ X ]
 
No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large
accelerated filer
 
Accelerated
filer
 
Non-
accelerated filer
 
Smaller
reporting company
 
Emerging growth company
Spire Inc.
X
 
 
 
 
 
 
 
 
Laclede Gas Company
 
 
 
 
X
 
 
 
 
Alabama Gas Corporation
 
 
 
 
X
 
 
 
 

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.
Spire Inc.
 
[ ]
 
 
Laclede Gas Company
 
[ ]
 
 
Alabama Gas Corporation
 
[ ]
 
 

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Spire Inc.
 
Yes [ ]
 
No [ X ]
Laclede Gas Company
 
Yes [ ]
 
No [ X ]
Alabama Gas Corporation
 
Yes [ ]
 
No [ X ]

The number of shares outstanding of each registrant’s common stock as of July 31, 2017 was as follows:
Spire Inc.
 
Common Stock, par value $1.00 per share
 
48,262,027

Laclede Gas Company
 
Common Stock, par value $1.00 per share (all owned by Spire Inc.)
 
24,577

Alabama Gas Corporation
 
Common Stock, par value $0.01 per share (all owned by Spire Inc.)
 
1,972,052


Laclede Gas Company and Alabama Gas Corporation meet the conditions set forth in General Instructions H(1)(a) and (b) to Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instructions H(2) to Form 10-Q.

This combined Form 10-Q represents separate filings by Spire Inc., Laclede Gas Company and Alabama Gas Corporation. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants, except that information relating to Laclede Gas Company and Alabama Gas Corporation are also attributed to Spire Inc.
 
 
 
 
 



TABLE OF CONTENTS
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
Spire Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Laclede Gas Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Alabama Gas Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to Financial Statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1




GLOSSARY OF KEY TERMS AND ABBREVIATIONS
Alabama Utilities
Alagasco and Mobile Gas, the utilities serving the Alabama region
 
Laclede Gas
Laclede Gas Company, or Missouri Utilities
Alagasco
Alabama Gas Corporation
 
MDNR
Missouri Department of Natural Resources
AOCI
Accumulated other comprehensive income or loss
 
MGE
Missouri Gas Energy
APSC
Alabama Public Service Commission
 
MGP
Manufactured gas plant
ASC
Accounting Standards Codification
 
Missouri Utilities
Laclede Gas Company (including MGE), the utilities serving the Missouri region
ASU
Accounting Standards Update
 
MMBtu
Million British thermal units
Bcf
Billion cubic feet
 
Mobile Gas
Mobile Gas Service Corporation
BVCP
Brownfields/Voluntary Cleanup Program
 
MoPSC
Missouri Public Service Commission
CERCLA
Comprehensive Environmental Response, Compensation, and Liability Act of 1980
 
MSPSC
Mississippi Public Service Commission
CCM
Cost Control Mechanism
 
NYMEX
New York Mercantile Exchange, Inc.
Degree days
The average of a day’s high and low temperature below 65, subtracted from 65, multiplied by the number of days impacted
 
NYSE
New York Stock Exchange
EnergySouth
EnergySouth, Inc.
 
O&M
Operation and maintenance expense
EPA
US Environmental Protection Agency
 
OPC
Missouri Office of the Public Counsel
EPS
Earnings per share
 
OTCBB
Over-the-Counter Bulletin Board
FASB
Financial Accounting Standards Board
 
PGA
Purchased Gas Adjustment
FERC
Federal Energy Regulatory Commission
 
PRP
Potentially responsible party
GAAP
Accounting principles generally accepted in the United States of America
 
RSE
Rate Stabilization and Equalization
Gas Marketing
Operating segment including Spire Marketing, which is engaged in the non-regulated marketing of natural gas and related activities
 
SEC
US Securities and Exchange Commission
Gas Utility
Segment including the regulated operations of the Utilities
 
Spire Marketing
Spire Marketing Inc. (formerly known as Laclede Energy Resources, Inc., or LER)
GSA
Gas Supply Adjustment
 
US
United States
ICE
Intercontinental Exchange
 
Utilities
Laclede Gas, Alagasco, and the subsidiaries of EnergySouth
ISRS
Infrastructure System Replacement Surcharge
 
Willmut Gas
Willmut Gas & Oil Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2




PART I. FINANCIAL INFORMATION
The interim financial statements included herein have been prepared by three separate registrants — Spire Inc. (Spire or the Company), Laclede Gas Company (Laclede Gas or Missouri Utilities) and Alabama Gas Corporation (Alagasco) — without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). These financial statements should be read in conjunction with the financial statements and the notes thereto included in each registrant’s respective Form 10-K for the fiscal year ended September 30, 2016.
The Financial Information in this Part I includes separate financial statements (i.e., balance sheets, statements of income and comprehensive income, statements of common shareholders’ equity and statements of cash flows) for Spire, Laclede Gas and Alagasco. The Notes to Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations are also included and presented herein on a combined basis for Spire, Laclede Gas and Alagasco.

3




Item 1. Financial Statements

SPIRE INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

 
Three Months Ended June 30,
 
Nine Months Ended June 30,
(In millions, except per share amounts)
2017
 
2016
 
2017
 
2016
Operating Revenues:
 
 
 
 
 

 
 
Gas Utility
$
305.1

 
$
253.2

 
$
1,419.1

 
$
1,263.5

Gas Marketing and other
18.4

 
(3.9
)
 
62.9

 
(5.5
)
Total Operating Revenues
323.5

 
249.3

 
1,482.0

 
1,258.0

Operating Expenses:
 
 
 
 
 
 
 
Gas Utility
 
 
 
 
 
 
 
Natural and propane gas
76.7

 
54.1

 
524.8

 
463.7

Operation and maintenance
100.8

 
91.8

 
298.6

 
277.7

Depreciation and amortization
38.4

 
34.2

 
114.0

 
101.5

Taxes, other than income taxes
30.5

 
27.4

 
112.2

 
99.5

Total Gas Utility Operating Expenses
246.4

 
207.5

 
1,049.6

 
942.4

Gas Marketing and other
26.8

 
6.5

 
112.6

 
25.6

Total Operating Expenses
273.2

 
214.0

 
1,162.2

 
968.0

Operating Income
50.3

 
35.3

 
319.8

 
290.0

Other Income
1.5

 
1.6

 
5.6

 
3.8

Interest Charges:
 
 
 
 
 
 
 
Interest on long-term debt
19.0

 
16.6

 
57.3

 
50.2

Other interest charges
2.4

 
2.8

 
8.9

 
7.5

Total Interest Charges
21.4

 
19.4

 
66.2

 
57.7

Income Before Income Taxes
30.4

 
17.5

 
259.2

 
236.1

Income Tax Expense
8.7

 
6.8

 
84.3

 
77.7

Net Income
$
21.7

 
$
10.7

 
$
174.9

 
$
158.4

 
 
 
 
 
 
 
 
Weighted Average Number of Common Shares Outstanding:
 
 
 
 
 
 
 
Basic
48.1

 
44.4

 
46.4

 
43.6

Diluted
48.2

 
44.6

 
46.6

 
43.8

Basic Earnings Per Share of Common Stock
$
0.45

 
$
0.24

 
$
3.76

 
$
3.62

Diluted Earnings Per Share of Common Stock
$
0.45

 
$
0.24

 
$
3.75

 
$
3.60

Dividends Declared Per Share of Common Stock
$
0.53

 
$
0.49

 
$
1.58

 
$
1.47

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


4




SPIRE INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

 
Three Months Ended June 30,
 
Nine Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Net Income
$
21.7

 
$
10.7

 
$
174.9

 
$
158.4

Other Comprehensive (Loss) Income, Before Tax:
 
 
 
 
 
 
 
Cash flow hedging derivative instruments:
 
 
 
 
 
 
 
Net hedging (losses) gains arising during the period
(1.0
)
 
(4.3
)
 
11.5

 
(5.6
)
Reclassification adjustment for (gains) losses included in net income

 
(1.5
)
 
0.1

 
0.2

Net unrealized (losses) gains on cash flow hedging derivative instruments
(1.0
)
 
(5.8
)
 
11.6

 
(5.4
)
Net gains on defined benefit pension and other postretirement plans
0.1

 

 
0.2

 
0.1

Net unrealized losses on available for sale securities

 

 
(0.1
)
 

Other Comprehensive (Loss) Income, Before Tax
(0.9
)
 
(5.8
)
 
11.7

 
(5.3
)
Income Tax (Benefit) Expense Related to Items of Other Comprehensive Income
(0.4
)
 
(2.2
)
 
4.3

 
(2.0
)
Other Comprehensive (Loss) Income, Net of Tax
(0.5
)
 
(3.6
)
 
7.4

 
(3.3
)
Comprehensive Income
$
21.2

 
$
7.1

 
$
182.3

 
$
155.1

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


5




SPIRE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 
June 30,
 
September 30,
 
June 30,
(Dollars in millions, except per share amounts)
2017
 
2016
 
2016
ASSETS
Utility Plant
$
5,071.4

 
$
4,793.6

 
$
4,339.5

Less: Accumulated depreciation and amortization
1,609.6

 
1,506.4

 
1,311.5

Net Utility Plant
3,461.8

 
3,287.2

 
3,028.0

Non-utility Property (net of accumulated depreciation and amortization of $8.4, $8.1 and $7.9 at June 30, 2017, September 30, 2016, and June 30, 2016, respectively)
39.9

 
13.7

 
13.8

Goodwill
1,163.9

 
1,164.9

 
946.0

Other Investments
63.8

 
62.1

 
62.4

Total Other Property and Investments
1,267.6

 
1,240.7

 
1,022.2

Current Assets:
 
 
 
 
 
Cash and cash equivalents
8.3

 
5.2

 
4.9

Accounts receivable:
 
 
 
 
 
Utility
141.9

 
127.8

 
133.1

Other
124.0

 
113.4

 
82.7

Allowance for doubtful accounts
(17.7
)
 
(20.5
)
 
(20.2
)
Delayed customer billings
7.0

 
1.6

 
3.5

Inventories:
 
 
 
 
 
Natural gas
144.4

 
174.0

 
116.6

Propane gas
12.0

 
12.0

 
12.0

Materials and supplies
18.4

 
16.3

 
15.3

Natural gas receivable
6.5

 
9.7

 
17.5

Derivative instrument assets
7.3

 
11.4

 
9.0

Unamortized purchased gas adjustments
73.9

 
49.7

 
5.4

Other regulatory assets
70.7

 
44.2

 
37.5

Prepayments and other
32.4

 
24.8

 
36.1

Total Current Assets
629.1

 
569.6

 
453.4

Deferred Charges:
 
 
 
 
 
Regulatory assets
840.5

 
838.0

 
730.7

Other
99.2

 
128.9

 
64.7

Total Deferred Charges
939.7

 
966.9

 
795.4

Total Assets
$
6,298.2

 
$
6,064.4

 
$
5,299.0


6




SPIRE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(UNAUDITED)

 
June 30,
 
September 30,
 
June 30,
 
2017
 
2016
 
2016
CAPITALIZATION AND LIABILITIES
 
 
 
 
 
Capitalization:
 
 
 
 
 
Common stock (par value $1.00 per share; 70.0 million shares authorized; 48.3 million, 45.6 million and 45.6 million shares issued and outstanding at June 30, 2017, September 30, 2016 and June 30, 2016, respectively)
$
48.2

 
$
45.6

 
$
45.6

Paid-in capital
1,323.7

 
1,175.9

 
1,173.5

Retained earnings
653.1

 
550.9

 
588.6

Accumulated other comprehensive income (loss)
3.2

 
(4.2
)
 
(5.3
)
Total Common Stock Equity
2,028.2

 
1,768.2

 
1,802.4

Long-term debt (less current portion)
1,925.3

 
1,820.7

 
1,839.8

Total Capitalization
3,953.5

 
3,588.9

 
3,642.2

Current Liabilities:
 
 
 
 
 
Current portion of long-term debt

 
250.0

 

Notes payable
450.7

 
398.7

 
97.6

Accounts payable
206.4

 
210.9

 
135.8

Advance customer billings
15.9

 
70.2

 
53.0

Wages and compensation accrued
38.9

 
39.8

 
36.5

Dividends payable
26.3

 
23.5

 
22.3

Customer deposits
35.0

 
34.9

 
31.9

Interest accrued
24.2

 
14.8

 
19.7

Taxes accrued
55.6

 
55.2

 
41.4

Unamortized purchased gas adjustments
1.0

 
1.7

 

Other regulatory liabilities
24.9

 
28.9

 
22.4

Other
30.9

 
32.7

 
31.2

Total Current Liabilities
909.8

 
1,161.3

 
491.8

Deferred Credits and Other Liabilities:
 
 
 
 
 
Deferred income taxes
705.3

 
607.3

 
574.1

Pension and postretirement benefit costs
300.4

 
303.7

 
246.9

Asset retirement obligations
214.7

 
206.4

 
164.6

Regulatory liabilities
139.8

 
130.7

 
105.7

Other
74.7

 
66.1

 
73.7

Total Deferred Credits and Other Liabilities
1,434.9

 
1,314.2

 
1,165.0

Commitments and Contingencies (Note 10)

 

 

Total Capitalization and Liabilities
$
6,298.2

 
$
6,064.4

 
$
5,299.0

 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 


7




SPIRE INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS’ EQUITY
(UNAUDITED)

 
Common Stock Outstanding
 
Paid-in Capital
 
Retained Earnings
 
AOCI*
 
 
(Dollars in millions)
Shares
 
Amount
 
 
 
 
Total
Balance at September 30, 2015
43,335,012

 
$
43.3

 
$
1,038.1

 
$
494.2

 
$
(2.0
)
 
$
1,573.6

Net income

 

 

 
158.4

 

 
158.4

Common stock offering
2,185,000

 
2.2

 
131.0

 

 

 
133.2

Dividend reinvestment plan
17,454

 

 
1.0

 

 

 
1.0

Stock-based compensation costs

 

 
4.6

 

 

 
4.6

Stock issued under stock-based compensation plans
127,489

 
0.1

 
0.5

 

 

 
0.6

Employee’s tax withholding for stock-based compensation
(29,227
)
 

 
(1.7
)
 

 

 
(1.7
)
Dividends declared

 

 

 
(64.0
)
 

 
(64.0
)
Other comprehensive loss, net of tax

 

 

 

 
(3.3
)
 
(3.3
)
Balance at June 30, 2016
45,635,728

 
$
45.6

 
$
1,173.5

 
$
588.6

 
$
(5.3
)
 
$
1,802.4

 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2016
45,650,642

 
$
45.6

 
$
1,175.9

 
$
550.9

 
$
(4.2
)
 
$
1,768.2

Net income

 

 

 
174.9

 

 
174.9

Common stock offering
2,504,684

 
2.5

 
143.0

 

 

 
145.5

Dividend reinvestment plan
18,025

 

 
1.2

 

 

 
1.2

Stock-based compensation costs

 

 
5.9

 
0.9

 

 
6.8

Stock issued under stock-based compensation plans
119,660

 
0.1

 
(0.1
)
 

 

 

Employee’s tax withholding for stock-based compensation
(35,167
)
 

 
(2.2
)
 

 

 
(2.2
)
Dividends declared

 

 

 
(73.6
)
 

 
(73.6
)
Other comprehensive income, net of tax

 

 

 

 
7.4

 
7.4

Balance at June 30, 2017
48,257,844

 
$
48.2

 
$
1,323.7

 
$
653.1

 
$
3.2

 
$
2,028.2

 
 
 
 
 
 
 
 
 
 
 
 
* Accumulated other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


8




SPIRE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
 
Nine Months Ended June 30,
(In millions)
2017
 
2016
Operating Activities:
 
 
 
Net Income
$
174.9

 
$
158.4

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation, amortization, and accretion
114.4

 
102.0

Deferred income taxes and investment tax credits
84.1

 
77.7

Changes in assets and liabilities:
 
 
 
Accounts receivable
(33.1
)
 
6.7

Unamortized purchased gas adjustments
(26.1
)
 
(11.3
)
Accounts payable
14.8

 
(6.4
)
Delayed/advance customer billings – net
(59.7
)
 
7.8

Taxes accrued
(4.8
)
 
(10.9
)
Inventories
27.5

 
71.5

Other assets and liabilities
24.2

 
(38.5
)
Other
4.5

 
(0.1
)
Net cash provided by operating activities
320.7

 
356.9

Investing Activities:
 
 
 
Capital expenditures
(298.6
)
 
(195.3
)
Settlement for acquisition of EnergySouth
3.8

 

Other
1.1

 
(1.5
)
Net cash used in investing activities
(293.7
)
 
(196.8
)
Financing Activities:
 
 
 
Issuance of long-term debt
250.0

 
80.0

Repayment of long-term debt
(393.8
)
 
(80.0
)
Issuance (repayment) of short-term debt - net
52.0

 
(240.4
)
Issuance of common stock
146.4

 
136.1

Dividends paid
(70.9
)
 
(62.9
)
Other
(7.6
)
 
(1.8
)
Net cash used in financing activities
(23.9
)
 
(169.0
)
Net Increase (Decrease) in Cash and Cash Equivalents
3.1

 
(8.9
)
Cash and Cash Equivalents at Beginning of Period
5.2

 
13.8

Cash and Cash Equivalents at End of Period
$
8.3

 
$
4.9

 
 
 
 
Supplemental disclosure of cash (paid) refunded for:
 
 
 
Interest
$
(54.5
)
 
$
(48.2
)
Income taxes
(0.7
)
 
3.9

 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 

9





LACLEDE GAS COMPANY
CONDENSED STATEMENTS OF INCOME
(UNAUDITED)

 
Three Months Ended June 30,
 
Nine Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Operating Revenues:
 

 
 
 
 

 
 

Utility
$
198.5

 
$
179.3

 
$
1,009.3

 
$
943.2

Total Operating Revenues
198.5

 
179.3

 
1,009.3

 
943.2

Operating Expenses:
 
 
 
 
 
 
 
Utility
 
 
 
 
 
 
 
Natural and propane gas
61.9

 
48.0

 
494.4

 
440.6

Operation and maintenance
61.2

 
58.4

 
179.2

 
178.7

Depreciation and amortization
23.2

 
22.3

 
68.9

 
66.0

Taxes, other than income taxes
21.7

 
21.2

 
81.6

 
76.4

Total Operating Expenses
168.0

 
149.9

 
824.1

 
761.7

Operating Income
30.5

 
29.4

 
185.2

 
181.5

Other Income
0.7

 
1.0

 
2.7

 
2.2

Interest Charges:
 
 
 
 
 
 
 
Interest on long-term debt
8.0

 
8.1

 
24.5

 
24.7

Other interest charges
1.5

 
1.0

 
4.4

 
3.2

Total Interest Charges
9.5

 
9.1

 
28.9

 
27.9

Income Before Income Taxes
21.7

 
21.3

 
159.0

 
155.8

Income Tax Expense
6.2

 
7.4

 
48.5

 
48.2

Net Income
$
15.5

 
$
13.9

 
$
110.5

 
$
107.6

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


10




LACLEDE GAS COMPANY
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

 
Three Months Ended June 30,
 
Nine Months Ended June 30,
(In millions)
2017
 
2016
 
2017
 
2016
Net Income
$
15.5

 
$
13.9

 
$
110.5

 
$
107.6

Other Comprehensive Income, Net of Tax

 
0.1

 

 
0.3

Comprehensive Income
$
15.5

 
$
14.0

 
$
110.5

 
$
107.9

 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 


11




LACLEDE GAS COMPANY
CONDENSED BALANCE SHEETS
(UNAUDITED)

 
June 30,
 
September 30,
 
June 30,
(Dollars in millions, except per share amounts)
2017
 
2016
 
2016
ASSETS
 
 
 
 
 
Utility Plant
$
2,914.1

 
$
2,718.5

 
$
2,659.7

Less: Accumulated depreciation and amortization
670.3

 
604.5

 
595.4

Net Utility Plant
2,243.8

 
2,114.0

 
2,064.3

Goodwill
210.2

 
210.2

 
210.2

Other Property and Investments
58.9

 
57.3

 
56.5

Total Other Property and Investments
269.1

 
267.5

 
266.7

Current Assets:
 
 
 
 
 
Cash and cash equivalents
2.6

 
2.1

 
1.5

Accounts receivable:
 
 
 
 
 
Utility
94.4

 
87.9

 
101.0

Associated companies
1.7

 
2.2

 
1.3

Other
13.8

 
11.4

 
10.5

Allowance for doubtful accounts
(13.4
)
 
(16.1
)
 
(16.5
)
Delayed customer billings
7.0

 
1.6

 
3.5

Inventories:
 
 
 
 
 
Natural gas
93.6

 
127.3

 
78.2

Propane gas
12.0

 
12.0

 
12.0

Materials and supplies
11.3

 
9.2

 
9.2

Derivative instrument assets
0.7

 
4.9

 
5.1

Unamortized purchased gas adjustments
29.0

 
43.1

 
0.6

Other regulatory assets
38.2

 
23.9

 
23.7

Prepayments and other
21.3

 
14.5

 
20.4

Total Current Assets
312.2

 
324.0

 
250.5

Deferred Charges:
 
 
 
 
 
Regulatory assets
583.4

 
589.8

 
562.6

Other
3.1

 
1.1

 
5.0

Total Deferred Charges
586.5

 
590.9

 
567.6

Total Assets
$
3,411.6

 
$
3,296.4

 
$
3,149.1

 
 
 


 
 

12




LACLEDE GAS COMPANY
CONDENSED BALANCE SHEETS (Continued)
(UNAUDITED)
 
 
June 30,
 
September 30,
 
June 30,
 
2017
 
2016
 
2016
CAPITALIZATION AND LIABILITIES
 
 
 
 
 
Capitalization:
 
 
 
 
 
Paid-in capital and common stock (par value $1.00 per share;
50,000 authorized; 24,577 shares issued and outstanding)
$
755.3

 
$
752.0

 
$
750.9

Retained earnings
414.0

 
318.3

 
333.9

Accumulated other comprehensive loss
(1.8
)
 
(1.8
)
 
(1.4
)
Total Common Stock Equity
1,167.5

 
1,068.5

 
1,083.4

Long-term debt 
804.5

 
804.1

 
803.9

Total Capitalization
1,972.0

 
1,872.6

 
1,887.3

Current Liabilities:
 
 
 
 
 
Notes payable

 
243.7

 
97.6

Notes payable – associated companies
260.2

 

 
38.8

Accounts payable
54.0

 
67.6

 
49.7

Accounts payable – associated companies
5.4

 
5.4

 
4.1

Advance customer billings
0.7

 
49.1

 
35.2

Wages and compensation accrued
29.4

 
29.9

 
28.7

Dividends payable

 
14.0

 
22.4

Customer deposits
13.2

 
13.5

 
13.3

Interest accrued
9.5

 
7.7

 
9.4

Taxes accrued
28.3

 
29.1

 
21.0

Regulatory liabilities
2.7

 
1.3

 
1.3

Other
7.5

 
9.9

 
9.1

Total Current Liabilities
410.9

 
471.2

 
330.6

Deferred Credits and Other Liabilities:
 
 
 
 
 
Deferred income taxes
620.9

 
556.9

 
548.8

Pension and postretirement benefit costs
204.2

 
211.8

 
191.9

Asset retirement obligations
77.9

 
75.2

 
75.0

Regulatory liabilities
83.6

 
67.3

 
65.7

Other
42.1

 
41.4

 
49.8

Total Deferred Credits and Other Liabilities
1,028.7

 
952.6

 
931.2

Commitments and Contingencies (Note 10)

 

 

Total Capitalization and Liabilities
$
3,411.6

 
$
3,296.4

 
$
3,149.1

 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 



13




LACLEDE GAS COMPANY
CONDENSED STATEMENTS OF COMMON SHAREHOLDER’S EQUITY
(UNAUDITED)

 
Common Stock Outstanding
 
Paid-in Capital
 
Retained Earnings
 
AOCI*
 
 
(Dollars in millions)
Shares
 
Amount
 
 
 
 
Total
Balance at September 30, 2015
24,577

 
$
0.1

 
$
748.2

 
$
291.2

 
$
(1.7
)
 
$
1,037.8

Net income

 

 

 
107.6

 

 
107.6

Stock-based compensation costs

 

 
2.6

 

 

 
2.6

Dividends declared

 

 

 
(64.9
)
 

 
(64.9
)
Other comprehensive income, net of tax

 

 

 

 
0.3

 
0.3

Balance at June 30, 2016
24,577

 
$
0.1

 
$
750.8

 
$
333.9

 
$
(1.4
)
 
$
1,083.4

 
 
 
 
 
 
 
 
 
 
 
 
Balance at September 30, 2016
24,577

 
$
0.1

 
$
751.9

 
$
318.3

 
$
(1.8
)
 
$
1,068.5

Net income

 

 

 
110.5

 

 
110.5

Stock-based compensation costs

 

 
3.3

 

 

 
3.3

Dividends declared

 

 

 
(14.8
)
 

 
(14.8
)
Balance at June 30, 2017
24,577

 
$
0.1

 
$
755.2

 
$
414.0

 
$
(1.8
)
 
$
1,167.5

 
 
 
 
 
 
 
 
 
 
 
 
* Accumulated other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See the accompanying Notes to Financial Statements.
 
 
 
 
 
 
 
 
 
 


14




LACLEDE GAS COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 
Nine Months Ended June 30,
(In millions)
2017
 
2016
Operating Activities:
 
 
 
Net Income
$
110.5

 
$
107.6

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
68.9

 
66.0

Deferred income taxes and investment tax credits
48.5

 
48.2

Changes in assets and liabilities:
 
 
 
Accounts receivable
(11.0
)
 
24.6

Unamortized purchased gas adjustments
12.8

 
21.7

Accounts payable
(6.2
)
 
(7.3
)
Delayed/advance customer billings – net
(53.8
)
 
9.1

Taxes accrued
(0.7
)
 
(4.5
)
Inventories
31.6

 
60.1

Other assets and liabilities
0.5

 
(29.4
)
Other
1.4

 
0.7

Net cash provided by operating activities
202.5

 
296.8

Investing Activities:
 
 
 
Capital expenditures
(189.5
)
 
(138.8
)