AVANGRID Reports Fourth Quarter and Full Year 2018 Earnings Results and Provides 2019 Earnings Outlook
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4Q ’18 consolidated U.S. GAAP net income of $119 million, or $0.38
per share; consolidated non-U.S. GAAP adjusted net income of $173
million, or $0.56 per share
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FY ’18 consolidated U.S. GAAP net income of $595 million, or $1.92
per share; consolidated non-U.S. GAAP adjusted net income of $684
million, or $2.21 per share
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2019 consolidated earnings per share outlook of $2.18-$2.33 on a
U.S. GAAP and $2.25-$2.40 on a non-U.S. GAAP adjusted basis
Today AVANGRID, Inc. (NYSE: AGR) reported consolidated U.S. GAAP net
income of $119 million, or $0.38 per share, for the fourth quarter ended
December 31, 2018, compared to a net loss of $77 million, or $0.25 per
share, for the same period in 2017. For the full year ended December 31,
2018, consolidated net income was $595 million, or $1.92 per share,
compared to $381 million, or $1.23 per share, for the full year in 2017.
Excluding the Gas Storage and Trading businesses and certain losses
related to its sale, restructuring charges, Tax Act-related adjustments,
mark-to-market adjustments, and other adjustments in Renewables,
non-U.S. GAAP consolidated adjusted net income was $173 million, or
$0.56 per share, for the quarter ended December 31, 2018, compared to
$188 million, or $0.61 per share, for the same period in 2017. For the
full year ended December 31, 2018, non-U.S. GAAP consolidated adjusted
net income was $684 million, or $2.21 per share, compared to $682
million, or $2.20 per share in 2017.
“2018 was an excellent year for AVANGRID in terms of executing on our
strategic plan, but challenging from an earnings perspective,” commented
James P. Torgerson, chief executive officer of AVANGRID. “Minor storms
and storm-related impacts, lower than expected wind resource and
start-up and transmission interruptions at two of our new wind farms
negatively affected our 2018 financial performance. We met these
challenges head-on by managing our operating costs to partially mitigate
earnings setbacks.”
“Our two New England clean energy strategic projects are advancing and
remain on track,” added Torgerson. “Vineyard Wind, our 800 MW offshore
wind farm in a joint-venture with Copenhagen Infrastructure Partners,
and the NECEC transmission project are both making progress on key
approvals and permits and we continue to expect to begin construction in
late 2019.”
“For 2019, we are looking to achieve our growth objectives, deliver
efficiencies in all areas of the company and address the issues that
impacted our results in 2018, ensuring we remain on the path to
achieving best-in-class service, safety, reliability and financial
performance and rank among the elite companies in our industry.”
Net income and earnings per share for the fourth quarter and full year
of 2018 and 2017 on a U.S. GAAP basis and a non-U.S. GAAP adjusted basis
are set forth below:
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GAAP Net Income (Loss) - $M
|
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Three Months ended December 31,
|
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Year ended December 31,
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|
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2018
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2017
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'18 vs '17
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2018
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|
2017
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'18 vs '17
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|
|
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|
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|
|
|
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Networks
|
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$
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103
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$
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124
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$
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(20
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)
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$
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478
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$
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496
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$
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(18
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)
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Renewables
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7
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218
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(210
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)
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148
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333
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(185
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)
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Corporate
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8
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53
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(46
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)
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(12
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)
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60
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(72
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)
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Gas Storage
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1
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(472
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)
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473
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(19
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)
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(508
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)
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489
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Net Income
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$
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119
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$
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(77
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)
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$
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196
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$
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595
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$
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381
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$
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214
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GAAP Earnings (Loss) Per Share
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Three Months ended December 31,
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Year ended December 31,
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2018
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2017
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'18 vs '17
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2018
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2017
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'18 vs '17
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Networks
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$
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0.33
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$
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0.40
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$
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(0.07
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)
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$
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1.54
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$
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1.60
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$
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(0.06
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)
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Renewables
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0.02
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0.70
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(0.68
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)
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0.48
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1.07
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(0.60
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)
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Corporate
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0.02
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0.17
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(0.15
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)
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(0.04
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)
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0.19
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(0.23
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)
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Gas Storage
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0.00
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(1.53
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)
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1.53
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(0.06
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)
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(1.64
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)
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1.58
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Earnings Per Share
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$
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0.38
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$
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(0.25
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)
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$
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0.63
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$
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1.92
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$
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1.23
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$
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0.69
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|
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|
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Weighted-avg # of Shares (M):
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309.5
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309.5
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309.5
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309.5
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Amounts may not add due to rounding
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Non-GAAP Adjusted Net Income (Loss) - $M
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Three Months ended December 31,
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Year ended December 31,
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Adjusted 2018
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Adjusted 2017
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Adjusted '18 vs '17
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Adjusted 2018
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Adjusted 2017
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Adjusted '18 vs '17
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Networks
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$
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110
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$
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133
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$
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(23
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)
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$
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486
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$
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507
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$
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(21
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)
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Renewables
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37
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6
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31
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185
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|
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120
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65
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Corporate
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26
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49
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(23
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)
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13
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55
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(42
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)
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Adjusted Net Income
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$
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173
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$
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188
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$
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(14
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)
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$
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684
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$
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682
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$
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2
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Non-GAAP Adjusted Earnings (Loss) Per Share
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Three Months ended December 31,
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Year ended December 31,
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Adjusted 2018
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Adjusted 2017
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Adjusted '18 vs '17
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Adjusted 2018
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Adjusted 2017
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Adjusted '18 vs '17
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Networks
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$
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0.35
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$
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0.43
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$
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(0.07
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)
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$
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1.57
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$
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1.64
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$
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(0.07
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)
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Renewables
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0.12
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0.02
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0.10
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0.60
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0.39
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0.21
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Corporate
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0.08
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0.16
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(0.07
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)
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0.04
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0.18
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(0.13
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)
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Adjusted Earnings Per Share
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$
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0.56
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$
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0.61
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$
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(0.05
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)
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$
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2.21
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$
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2.20
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$
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0.01
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|
|
|
|
|
|
|
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Weighted-avg # of Shares (M):
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309.5
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309.5
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|
|
|
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309.5
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|
|
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309.5
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|
|
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Amounts may not add due to rounding
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For additional information, see “Use of Non-U.S. GAAP Financial
Measures” and “Reconciliation of Non-U.S. GAAP Financial Measures” at
the end of the release.
The following results for AVANGRID’s business segments are reported in
U.S. GAAP.
Avangrid Networks
For the fourth quarter 2018, Avangrid Networks earned $103 million, or
$0.33 per share, compared to $124 million, or $0.40 per share, for the
same period in 2017. Earnings for the full year 2018 were $478 million,
or $1.54 per share, compared to $496 million, or $1.60 per share, for
the same period in 2017. Earnings for the fourth quarter and full year
2018 compared to 2017 benefited primarily from the implementation of the
multi-year rate plans and lower restructuring charges, which were more
than offset by non-deferrable storm-related costs (minor storms and
related impacts), increased depreciation expenses, the absence of
performance incentives which expired in 2017 and higher tax sharing
adjustments (partially offset in Corporate).
Networks adjusted earnings for the fourth quarter 2018 were $110
million, or $0.35 per share, compared to $133 million, or $0.43 per
share, for the same period in 2017. Adjusted earnings for the full year
2018 were $486 million, or $1.57 per share, compared to $507 million, or
$1.64 per share in 2017.
Avangrid Renewables
For the fourth quarter 2018, Avangrid Renewables earned $7 million, or
$0.02 per share, compared to $218 million, or $0.70 per share, for the
same period in 2017. Earnings for the full year 2018 were $148 million,
or $0.48 per share, compared to $333 million, or $1.07 per share, for
the same period in 2017. Earnings for the fourth quarter and full year
2017 compared to the same periods in 2018 reflect tax reform
measurements of a $301 million benefit and $16 million expense,
respectively. Earnings for the fourth quarter compared to the same
period in 2017 benefited from increased wind generation from new
capacity (although below expectations), and income from the sale of
projects in development and the absence of an impairment of an equity
method investment recorded in 2017, partially offset by expiring tax
credits. Adjusted earnings for the fourth quarter 2018 were $37 million,
or $0.12 per share, compared to $6 million or $0.02 per share, for the
same period in 2017.
Earnings for the full year 2018 benefited from increased wind generation
from new capacity (although below expectations), income from the
settlement of a counterparty bankruptcy proceeding, recovery of bad debt
and revenues from a disputed contract, the sale of transmission rights
and income from the sale of projects in development. These benefits were
partially offset by the impact of start-up issues at two new wind farms
during the second quarter 2018. Adjusted earnings for the full year 2018
were $185 million, or $0.60 per share, compared to $120 million, or
$0.39 per share in 2017.
Corporate
For the fourth quarter 2018, Corporate earned net income of $8 million,
or $0.02 per share, compared to $53 million, or $0.17 per share, for the
same period in 2017. For the full year 2018, Corporate incurred a net
loss of $12 million, or $0.04 per share, compared to net income of $60
million, or $0.19 per share, in 2017. Earnings for the fourth quarter
and full year 2018 compared to the same period in 2017 reflect tax
sharing adjustments (mentioned above in Networks), additional finance
expenses associated with new long-term debt issued in November 2017, the
elimination of intercompany interest income from the Gas Storage and
Trading Businesses in 2018 and the absence of a unitary tax benefit
driven by the sale of the Gas Storage and Trading Businesses recorded in
the fourth quarter 2017.
Adjusted earnings for the fourth quarter 2018 were $26 million, or $0.08
per share, compared to $49 million, or $0.16 per share, for the same
period in 2017. For the full year 2018, adjusted earnings for were $13
million, or $0.04 per share, compared to $55 million, or $0.18 per share
in 2017.
Gas Storage and Trading
The sales of the Gas Storage and Trading and businesses were completed
on May 1 and March 1 2018, respectively. For the fourth quarter 2018,
Gas Storage and Trading reported net income of $1 million, compared to a
net loss of $472 million, or $1.53 per share, for the same period in
2017. For the full year 2018, Gas Storage and Trading incurred a net
loss of $19 million, or $0.06 per share, compared to net loss of $508
million, or $1.64 per share, compared to the full year 2017.
Outlook
AVANGRID’s U.S. GAAP consolidated earnings outlook and adjusted non-U.S.
GAAP consolidated earnings outlook for 2019 are projected to be
$2.18-$2.33 per share and $2.25-$2.40 per share, respectively. AVANGRID
believes the adjusted consolidated earnings outlook is useful in
understanding and evaluating actual and projected financial performance
of the company. Details of the earnings components of the outlook are
summarized as follows, including reconciliations to the U.S. GAAP
earnings outlook for 2019 to the adjusted non-U.S. GAAP consolidated
earnings outlook.
Details of the earnings components are as follows:
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Outlook - Estimated EPS
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U.S. GAAP(1)
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Non-U.S. GAAP Adjusted
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Networks
|
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$1.75 - $1.88
|
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$1.75 - $1.88
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Renewables
|
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$0.45 - $0.53
|
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$0.52 - $0.60
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Corporate
|
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($0.08) - ($0.02)
|
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($0.08) - ($0.02)
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EPS
|
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$2.18 - $2.33
|
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$2.25 - $2.40
|
|
|
|
|
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(1) Includes the MtM portion asset or liability that will be
realized in '19 & an estimate of
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accelerated depreciation on repowering
|
|
|
Amounts may not add due to rounding; Estimates are not expected
to be additive.
|
Assumes approx. 309.5 million shares outstanding
|
|
|
|
|
|
-
Earning allowed returns at the utilities through best practices & cost
management
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Addresses cost recovery mechanisms for minor storms in rate requests,
implementing operational improvements and investing in storm resiliency
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FERC ROE decision approving current proposal
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Revised wind forecast from 2011-2014 average to life-to-date average
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Potential sale and/or partnership sale of projects
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Conducting mid-period assessment of Forward 2020+ plan to achieve best
in class objectives
Webcast
AVANGRID will webcast an audio-only financial presentation in
conjunction with releasing fourth quarter and full year 2018 earnings
tomorrow, Wednesday, February 20th beginning at 9:00 A.M.
Eastern time. The webcast will feature a presentation from Avangrid’s
CEO, James P. Torgerson and other members of the executive team, and can
be accessed through the Investor Relations’ section of Avangrid’s
website at www.avangrid.com.
In addition, AVANGRID will host a meeting for the investor community on
Tuesday, February 26, 2019 in New York beginning at 9:00 A.M. Eastern
time. AVANGRID’s Executive team will present an update of AVANGRID’s
Long-term Outlook followed by a question and answer session. The
audio-webcast can also be accessed through the Investor Relations’
section of Avangrid’s website at www.avangrid.com
About AVANGRID: AVANGRID, Inc. (NYSE: AGR) is a leading,
sustainable energy company with approximately $32 billion in assets and
operations in 24 U.S. states. AVANGRID has two primary lines of
business: Avangrid Networks and Avangrid Renewables. Avangrid Networks
owns eight electric and natural gas utilities, serving 3.2 million
customers in New York and New England. Avangrid Renewables owns and
operates 7.2 gigawatts of electricity capacity, primarily through wind
power, with a presence in 22 states across the United States. AVANGRID
supports the achievement of the Sustainable Development Goals approved
by the member states of the United Nations, and earned the Compliance
Leader Verification, a third party verification of its ethics and
compliance program certification, from Ethisphere Institute.. AVANGRID
employs approximately 6,500 people. For more information, visit www.avangrid.com.
Forward Looking Statements
Forward Looking Statements: This news release contains a number of
forward-looking statements. Forward-looking statements may be identified
by the use of forward-looking terms such as “may,” “will,” “should,”
“can,” “expects,” “future,” “would,” “could,” “can,” “expect(s,)”
“believe(s),” “anticipate(s),” “intend(s),” “plan(s),” “estimate(s),”
“project(s),”“assume(s),” “guide(s),” “target(s),” “forecast(s),” “are
(is) confident that” and “seek(s)”“can,” “expects,” “believes,”
“anticipates,” “intends,” “plans,” “estimates,” “projects,” “assumes,”
“guides,” “targets,” “forecasts,” “is confident that” and “seeks” or the
negative of such terms or other variations on such terms or comparable
terminology. Such forward-looking statements include, but are not
limited to, statements about our plans, objectives and intentions,
outlooks or expectations for earnings, revenues, expenses or other
future financial or business performance, strategies or expectations, or
the impact of legal or regulatory matters on business, results of
operations or financial condition of the business and other statements
that are not historical facts. Such statements are based upon the
reasonable current beliefs, expectations, and assumptions of our
management and are subject to significant risks and uncertainties that
could cause actual outcomes and results to differ materially. Important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements include, without
limitation: our future financial performance, anticipated liquidity and
capital expenditures; actions or inactions of local, state or federal
regulatory agencies; success in retaining or recruiting our officers,
key employees or directors; changes in levels or timing of capital
expenditures; adverse developments in general market, business,
economic, labor, regulatory and political conditions; fluctuations in
weather patterns; technological developments; the impact of any
cyber-breaches, grid disturbances, acts of war or terrorism or natural
disasters; the impact of any change to applicable laws and regulations
affecting operations, including those relating to environmental and
climate change, taxes, price controls, regulatory approvals and
permitting; and other presently unknown or unforeseen factors.
Additional risks and uncertainties are set forth under the “Risk
Factors” in the AVANGRID, Inc. Annual Report on Form 10-K for the year
ended December 31, 2017, and the AVANGRID, Inc. Quarterly Report on Form
10-Q for the nine months ended September 30, 2018, which are on file
with the U.S. Securities and Exchange Commission. Should one or more of
these risks or uncertainties materialize, or should any of the
underlying assumptions prove incorrect, actual results may vary in
material respects from those expressed or implied by these
forward-looking statements. You should not place undue reliance on these
forward-looking statements. We do not undertake any obligation to update
or revise any forward-looking statements to reflect events or
circumstances after the date of this press release, whether as a result
of new information, future events or otherwise, except as may be
required under applicable securities laws.
Use of Non-U.S. GAAP Financial Measures
To supplement our consolidated financial statements presented in
accordance with U.S. GAAP, AVANGRID considers certain non-GAAP financial
measures that are not prepared in accordance with U.S. GAAP, including
adjusted net income and EPS. The non-GAAP financial measures we use are
specific to AVANGRID and the non-GAAP financial measures of other
companies may not be calculated in the same manner. We use these
non-GAAP financial measures, in addition to U.S. GAAP measures, to
establish operating budgets and operational goals to manage and monitor
our business, evaluate our operating and financial performance and to
compare such performance to prior periods and to the performance of our
competitors. We believe that presenting such non-GAAP financial measures
is useful because such measures can be used to analyze and compare
profitability between companies and industries because it eliminates the
impact of financing and certain non-cash charges as well as allow for an
evaluation of AVANGRID with a focus on the performance of its core
operations. In addition, we present non-GAAP financial measures because
we believe that they and other similar measures are widely used by
certain investors, securities analysts and other interested parties as
supplemental measures of performance.
We provide adjusted net income and adjusted earnings per share, which
are adjusted to reflect the effect of mark-to-market changes in the fair
value of derivative instruments used by AVANGRID to economically hedge
market price fluctuations in related underlying physical transactions
for the purchase and sale of electricity, adjustments for the non-core
Gas Storage and Trading businesses including certain losses related to
the sale of such businesses, restructuring charges primarily associated
with reorganizing to better align our people resources with business
demands and priorities as part of the Forward 2020+ program, impact from
measurement of deferred income tax balances as a result of the Tax Act
enacted by the U.S. federal government on December 22, 2017, impact of
accelerated depreciation on the repowering of certain Renewables assets
and the impairment of equity method investments. We believe that
presenting these non-GAAP financial measures is useful in understanding
and evaluating actual and projected financial performance and
contribution of AVANGRID core lines of business and to more fully
compare and explain our results. The most directly comparable U.S. GAAP
measure to adjusted net income is net income. We also provide adjusted
EPS, which is adjusted net income converted to an earnings per share
amount.
The use of non-GAAP financial measures is not intended to be
considered in isolation or as a substitute for, or superior to,
AVANGRID’s U.S. GAAP financial information, and investors are cautioned
that the non-GAAP financial measures are limited in their usefulness,
may be unique to AVANGRID, and should be considered only as a supplement
to AVANGRID’s U.S. GAAP financial measures. The non-GAAP financial
measures may not be comparable to other similarly titled measures of
other companies and have limitations as analytical tools. Non-GAAP
financial measures are not primary measurements of our performance under
U.S. GAAP and should not be considered as alternatives to operating
income, net income or any other performance measures determined in
accordance with U.S. GAAP.
|
Avangrid, Inc.
|
Condensed Consolidated Statements of Income
|
(In Millions except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
December 31,
|
|
December 31,
|
($M)
|
|
2018
|
2017
|
|
2018
|
2017
|
Operating Revenues
|
|
$
|
1,665
|
|
$
|
1,533
|
|
|
$
|
6,478
|
|
$
|
5,963
|
|
Operating Expenses
|
|
|
|
|
|
|
Purchased power, natural gas and fuel used
|
|
|
456
|
|
|
381
|
|
|
|
1,653
|
|
|
1,338
|
|
Loss from assets held for sale
|
|
|
-
|
|
|
642
|
|
|
|
16
|
|
|
642
|
|
Operations and maintenance
|
|
|
614
|
|
|
545
|
|
|
|
2,248
|
|
|
2,091
|
|
Depreciation and amortization
|
|
|
211
|
|
|
216
|
|
|
|
855
|
|
|
824
|
|
Taxes other than income taxes
|
|
|
135
|
|
|
141
|
|
|
|
579
|
|
|
563
|
|
Total Operating Expenses
|
|
|
1,416
|
|
|
1,925
|
|
|
|
5,351
|
|
|
5,458
|
|
Operating Income
|
|
|
249
|
|
|
(392
|
)
|
|
|
1,127
|
|
|
505
|
|
Other Income and (Expense)
|
|
|
|
|
|
|
Other expense
|
|
|
(9
|
)
|
|
(10
|
)
|
|
|
(66
|
)
|
|
(62
|
)
|
Earnings from equity method investments
|
|
|
2
|
|
|
(43
|
)
|
|
|
10
|
|
|
(40
|
)
|
Interest expense, net of capitalization
|
|
|
(84
|
)
|
|
(70
|
)
|
|
|
(303
|
)
|
|
(280
|
)
|
Income Before Income Tax
|
|
|
158
|
|
|
(515
|
)
|
|
|
768
|
|
|
123
|
|
Income tax expense
|
|
|
42
|
|
|
(438
|
)
|
|
|
170
|
|
|
(259
|
)
|
Net Income
|
|
|
116
|
|
|
(77
|
)
|
|
|
598
|
|
|
382
|
|
Less: Net (loss) income attributable to noncontrolling interests
|
|
|
(3
|
)
|
|
-
|
|
|
|
3
|
|
|
1
|
|
Net Income Attributable to Avangrid, Inc.
|
|
$
|
119
|
|
$
|
(77
|
)
|
|
$
|
595
|
|
$
|
381
|
|
|
|
|
|
|
|
|
Earnings per Common Share, Basic:
|
|
$
|
0.79
|
|
$
|
(0.25
|
)
|
|
$
|
1.92
|
|
$
|
1.23
|
|
Earnings per Common Share, Diluted:
|
|
$
|
0.79
|
|
$
|
(0.25
|
)
|
|
$
|
1.92
|
|
$
|
1.23
|
|
Weighted-average Number of Common Shares Outstanding (M):
|
|
|
|
|
|
Basic
|
|
|
309.5
|
|
|
309.5
|
|
|
|
309.5
|
|
|
309.5
|
|
Diluted
|
|
|
309.7
|
|
|
309.7
|
|
|
|
309.7
|
|
|
309.7
|
|
|
|
|
|
|
|
|
Amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avangrid, Inc.
|
Condensed Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
December 31,
|
|
($M)
|
|
2018
|
|
2017
|
|
ASSETS
|
|
|
|
|
|
Current assets
|
|
$
|
1,963
|
|
|
$
|
2,260
|
|
|
Net property, plant & equipment in service
|
|
|
21,849
|
|
|
|
21,244
|
|
|
Total property, plant & equipment
|
|
|
23,459
|
|
|
|
22,669
|
|
|
Regulatory assets
|
|
|
2,646
|
|
|
|
2,738
|
|
|
Goodwill
|
|
|
3,127
|
|
|
|
3,127
|
|
|
Other assets
|
|
|
972
|
|
|
|
877
|
|
|
Total Assets
|
|
$
|
32,167
|
|
|
$
|
31,671
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities
|
|
|
3,004
|
|
|
|
3,114
|
|
|
Regulatory liabilities
|
|
|
3,223
|
|
|
|
3,252
|
|
|
Other non-current liabilities
|
|
|
5,169
|
|
|
|
5,013
|
|
|
Non-current debt
|
|
|
5,368
|
|
|
|
5,196
|
|
|
Total Liabilities
|
|
|
16,764
|
|
|
|
16,575
|
|
|
EQUITY
|
|
|
|
|
|
Common stock
|
|
|
3
|
|
|
|
3
|
|
|
Additional paid-in-capital
|
|
|
13,657
|
|
|
|
13,653
|
|
|
Treasury stock
|
|
|
(12
|
)
|
|
|
(8
|
)
|
|
Retained earnings
|
|
|
1,528
|
|
|
|
1,475
|
|
|
Accumulated other comprehensive loss
|
|
|
(72
|
)
|
|
|
(46
|
)
|
|
Total Stockholders' Equity
|
|
|
15,104
|
|
|
|
15,077
|
|
|
Noncontrolling interests
|
|
|
299
|
|
|
|
19
|
|
|
Total Equity
|
|
|
15,403
|
|
|
|
15,096
|
|
|
Total Liabilities & Equity
|
|
$
|
32,167
|
|
|
$
|
31,671
|
|
|
|
|
|
|
|
Amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
Avangrid, Inc.
|
Condensed Consolidated Statement of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
AVANGRID CONS
|
|
|
Year ended
|
|
|
December 31,
|
$M
|
|
2018
|
|
2017
|
Cash Flow from Operating Activities:
|
|
|
|
|
Net income
|
|
$
|
598
|
|
|
$
|
382
|
|
Net Cash Provided by Operating Activities
|
|
|
1,791
|
|
|
|
1,763
|
|
Cash Flow from Investing Activities:
|
|
|
|
|
Capital expenditures
|
|
|
(1,787
|
)
|
|
|
(2,416
|
)
|
Contributions in aid of construction
|
|
|
60
|
|
|
|
57
|
|
Proceeds from sale of assets
|
|
|
186
|
|
|
|
12
|
|
Proceeds from sale of property, plant and equipment
|
|
|
18
|
|
|
|
—
|
|
Cash distribution from equity method investments
|
|
|
4
|
|
|
|
4
|
|
Receipts from (payments to) affiliates
|
|
|
—
|
|
|
|
—
|
|
Other investments and equity method investments, net
|
|
|
(45
|
)
|
|
|
2
|
|
Net Cash Used in Investing Activities
|
|
|
(1,564
|
)
|
|
|
(2,341
|
)
|
Cash Flow from Financing Activities:
|
|
|
|
|
Contribution from parent
|
|
|
—
|
|
|
|
—
|
|
Non-current note issuance
|
|
|
597
|
|
|
|
888
|
|
Repayments of non-current debt
|
|
|
(217
|
)
|
|
|
(305
|
)
|
(Repayments) receipts of other short-term debt, net
|
|
|
(201
|
)
|
|
|
625
|
|
Payments on tax equity financing arrangements
|
|
|
—
|
|
|
|
(113
|
)
|
Repayments of capital leases
|
|
|
(13
|
)
|
|
|
(33
|
)
|
Repurchase of common stock
|
|
|
(4
|
)
|
|
|
(3
|
)
|
Issuance of common stock
|
|
|
(2
|
)
|
|
|
(1
|
)
|
Distributions to noncontrolling interests
|
|
|
(76
|
)
|
|
|
—
|
|
Contributions from noncontrolling interests
|
|
|
223
|
|
|
|
5
|
|
Dividends paid
|
|
|
(537
|
)
|
|
|
(535
|
)
|
Net Cash (Used in) Provided by Financing Activities
|
|
|
(230
|
)
|
|
|
528
|
|
Net Decrease in Cash, Cash Equivalents and Restricted Cash
|
|
|
(3
|
)
|
|
|
(50
|
)
|
Cash, Cash Equivalents and Restricted Cash, beginning of period
|
|
|
46
|
|
|
|
96
|
|
Cash, Cash Equivalents and Restricted Cash, end of period
|
|
$
|
43
|
|
|
$
|
46
|
|
|
|
|
|
|
Amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial
Measures
|
|
Avangrid, Inc.
|
Reconciliation of Non-GAAP Adjusted Net Income (Loss) - $M
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended December 31,
|
|
Year ended December 31,
|
|
|
2018
|
|
|
2017
|
|
'18 vs '17
|
|
2018
|
|
2017
|
|
'18 vs '17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Networks
|
|
$
|
103
|
|
|
$
|
124
|
|
|
$
|
(20
|
)
|
|
$
|
478
|
|
|
$
|
496
|
|
|
$
|
(18
|
)
|
Renewables
|
|
|
7
|
|
|
|
218
|
|
|
|
(210
|
)
|
|
|
148
|
|
|
|
333
|
|
|
|
(185
|
)
|
Corporate
|
|
|
8
|
|
|
|
53
|
|
|
|
(46
|
)
|
|
|
(12
|
)
|
|
|
60
|
|
|
|
(72
|
)
|
Gas Storage
|
|
|
1
|
|
|
|
(472
|
)
|
|
|
473
|
|
|
|
(19
|
)
|
|
|
(508
|
)
|
|
|
489
|
|
Net Income
|
|
$
|
119
|
|
|
$
|
(77
|
)
|
|
$
|
196
|
|
|
$
|
595
|
|
|
$
|
381
|
|
|
$
|
214
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
2
|
|
|
|
18
|
|
|
|
(16
|
)
|
|
|
4
|
|
|
|
20
|
|
|
|
(16
|
)
|
Mark-to-market adjustments - Renewables
|
|
|
16
|
|
|
|
17
|
|
|
|
(1
|
)
|
|
|
25
|
|
|
|
15
|
|
|
|
10
|
|
Loss from held for sale measurement
|
|
|
-
|
|
|
|
642
|
|
|
|
(642
|
)
|
|
|
16
|
|
|
|
642
|
|
|
|
(627
|
)
|
Accelerated depreciation from repowering
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
|
|
3
|
|
|
|
-
|
|
|
|
3
|
|
Impairment of equity method investment
|
|
|
-
|
|
|
|
49
|
|
|
|
(49
|
)
|
|
|
-
|
|
|
|
49
|
|
|
|
(49
|
)
|
Impact of the Tax Act
|
|
|
40
|
|
|
|
(328
|
)
|
|
|
367
|
|
|
|
46
|
|
|
|
(328
|
)
|
|
|
374
|
|
Income tax impact of adjustments*
|
|
|
(5
|
)
|
|
|
(162
|
)
|
|
|
157
|
|
|
|
6
|
|
|
|
(162
|
)
|
|
|
169
|
|
Gas Storage, net of tax
|
|
|
(1
|
)
|
|
|
29
|
|
|
|
(29
|
)
|
|
|
(11
|
)
|
|
|
64
|
|
|
|
(75
|
)
|
Adjusted Net Income
|
|
$
|
173
|
|
|
$
|
188
|
|
|
$
|
(14
|
)
|
|
$
|
684
|
|
|
$
|
682
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 2018: Income tax impact of adjustments: $(6.6)M from
mark-to-market (MtM) adjustment and $(0.7)M from accelerated
depreciation - Renewables, $(1.1)M from restructuring charges -
Networks, $14.4M from loss from held for sale measurement - Gas.
|
* 2017: Income tax impact of adjustments: $(5)M from
mark-to-market adjustment, $(13)M from other than temporary
impairment (OTTI) on equity method investment - Renewables, $(8)M
from restructuring charges - Networks, $(179)M from loss from held
for sale measurement - Gas, $43 million from adjustment to unitary
income taxes at Renewables as a result of expected future sale of
Gas.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted Net Income (Loss) - $M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended December 31,
|
|
Year ended December 31,
|
|
|
Adjusted 2018
|
Adjusted 2017
|
|
Adjusted '18 vs '17
|
|
Adjusted 2018
|
|
Adjusted 2017
|
|
Adjusted '18 vs '17
|
Networks
|
|
$
|
110
|
|
|
$
|
133
|
|
|
$
|
(23
|
)
|
|
$
|
486
|
|
|
$
|
507
|
|
|
$
|
(21
|
)
|
Renewables
|
|
|
37
|
|
|
|
6
|
|
|
|
31
|
|
|
|
185
|
|
|
|
120
|
|
|
|
65
|
|
Corporate
|
|
|
26
|
|
|
|
49
|
|
|
|
(23
|
)
|
|
|
13
|
|
|
|
55
|
|
|
|
(42
|
)
|
Adjusted Net Income
|
|
$
|
173
|
|
|
$
|
188
|
|
|
$
|
(14
|
)
|
|
$
|
684
|
|
|
$
|
682
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avangrid, Inc.
|
Reconciliation of Adjusted Non-GAAP Earnings (Loss) Per Share
(EPS)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended December 31,
|
|
Year ended December 31,
|
|
|
2018
|
|
2017
|
|
'18 vs '17
|
|
2018
|
|
2017
|
|
'18 vs '17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Networks
|
|
$
|
0.33
|
|
|
$
|
0.40
|
|
|
$
|
(0.07
|
)
|
|
$
|
1.54
|
|
|
$
|
1.60
|
|
|
$
|
(0.06
|
)
|
Renewables
|
|
|
0.02
|
|
|
|
0.70
|
|
|
|
(0.68
|
)
|
|
|
0.48
|
|
|
|
1.07
|
|
|
|
(0.60
|
)
|
Corporate
|
|
|
0.02
|
|
|
|
0.17
|
|
|
|
(0.15
|
)
|
|
|
(0.04
|
)
|
|
|
0.19
|
|
|
|
(0.23
|
)
|
Gas Storage
|
|
|
0.00
|
|
|
|
(1.53
|
)
|
|
|
1.53
|
|
|
|
(0.06
|
)
|
|
|
(1.64
|
)
|
|
|
1.58
|
|
Earnings Per Share
|
|
$
|
0.38
|
|
|
$
|
(0.25
|
)
|
|
$
|
0.63
|
|
|
$
|
1.92
|
|
|
$
|
1.23
|
|
|
$
|
0.69
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
|
0.01
|
|
|
|
0.06
|
|
|
|
(0.05
|
)
|
|
|
0.01
|
|
|
|
0.07
|
|
|
|
(0.05
|
)
|
Mark-to-market adjustments - Renewables
|
|
|
0.05
|
|
|
|
0.05
|
|
|
|
(0.00
|
)
|
|
|
0.08
|
|
|
|
0.05
|
|
|
|
0.03
|
|
Loss from held for sale measurement
|
|
|
-
|
|
|
|
2.08
|
|
|
|
(2.08
|
)
|
|
|
0.05
|
|
|
|
2.08
|
|
|
|
(2.02
|
)
|
Accelerated depreciation from repowering
|
|
|
0.01
|
|
|
|
-
|
|
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
Impairment of equity method investment
|
|
|
-
|
|
|
|
0.16
|
|
|
|
(0.16
|
)
|
|
|
-
|
|
|
|
0.16
|
|
|
|
(0.16
|
)
|
Impact of the Tax Act
|
|
|
0.13
|
|
|
|
(1.06
|
)
|
|
|
1.19
|
|
|
|
0.15
|
|
|
|
(1.06
|
)
|
|
|
1.21
|
|
Income tax impact of adjustments*
|
|
|
(0.02
|
)
|
|
|
(0.52
|
)
|
|
|
0.51
|
|
|
|
0.02
|
|
|
|
(0.52
|
)
|
|
|
0.54
|
|
Gas Storage, net of tax
|
|
|
(0.00
|
)
|
|
|
0.09
|
|
|
|
(0.09
|
)
|
|
|
(0.04
|
)
|
|
|
0.21
|
|
|
|
(0.24
|
)
|
Adjusted Earnings Per Share
|
|
$
|
0.56
|
|
|
$
|
0.61
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.21
|
|
|
$
|
2.20
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-avg # of Shares (M):
|
|
|
309.5
|
|
|
|
309.5
|
|
|
|
|
|
309.5
|
|
|
|
309.5
|
|
|
|
Amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* 2018: EPS Income tax impact of adjustments: $(0.02) from
mark-to-market (MtM) adjustment - Renewables, $(0.01) from
restructuring charges - Networks, $0.05 from loss from held for sale
measurement.
|
* 2017: EPS Income tax impact of adjustments: $(0.01) from
mark-to-market adjustment, $(0.04) from other than temporary
impairment (OTTI) on equity method investment - Renewables and
$(0.03) from restructuring charges - Networks, $(0.58) from loss
from held for sale measurement, $0.14 from adjustment to unitary
income taxes at Renewables as a result of expected future sale of
Gas.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Adjusted Earnings (Loss) Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months ended December 31,
|
|
Year ended December 31,
|
|
|
Adjusted 2018
|
Adjusted 2017
|
|
Adjusted '18 vs '17
|
|
Adjusted 2018
|
|
Adjusted 2017
|
|
Adjusted '18 vs '17
|
Networks
|
|
$
|
0.35
|
|
|
$
|
0.43
|
|
|
$
|
(0.07
|
)
|
|
$
|
1.57
|
|
|
$
|
1.64
|
|
|
$
|
(0.07
|
)
|
Renewables
|
|
|
0.12
|
|
|
|
0.02
|
|
|
|
0.10
|
|
|
|
0.60
|
|
|
|
0.39
|
|
|
|
0.21
|
|
Corporate
|
|
|
0.08
|
|
|
|
0.16
|
|
|
|
(0.07
|
)
|
|
|
0.04
|
|
|
|
0.18
|
|
|
|
(0.13
|
)
|
Adjusted Earnings Per Share
|
|
$
|
0.56
|
|
|
$
|
0.61
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.21
|
|
|
$
|
2.20
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-avg # of Shares (M):
|
|
|
309.5
|
|
|
|
309.5
|
|
|
|
|
|
309.5
|
|
|
|
309.5
|
|
|
|
Amounts may not add due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190219005950/en/
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