10-QPeriod: Q1 FY2015

AMEREN CORP Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 11, 2015For Securities:AEE

Summary

Ameren Corporation's first quarter 2015 results showed a net income of $108 million, or $0.45 per diluted share, an increase from $97 million, or $0.40 per diluted share, in the same period of 2014. This improvement was driven by higher rates and increased rate base investments at Ameren Illinois and ATXI, lower operating expenses at Ameren Missouri, and reduced interest expenses at the parent company. These positive factors were partially offset by decreased energy demand due to milder weather, a provision for potential refunds related to FERC-regulated transmission service, and increased depreciation and financing costs. The company continues to strategically invest in its utility infrastructure, particularly in FERC-regulated electric transmission projects, with significant capital expenditures planned over the next five years. Regulatory developments are also noteworthy, including Ameren Missouri receiving an electric rate increase and Ameren Illinois extending its electric delivery service formula rate framework. The company is actively engaged in advocating for responsible energy policies and operational efficiencies to ensure competitive returns for shareholders.

Financial Highlights

46 data points
Beta

Revenue

$1.56B

Net Income

$108.00M

6.9% Net Margin

EPS (Diluted)

$0.45

Total Assets

$22.88B

Cash & Equivalents

$6.00M

Free Cash Flow

-$105.00M

Financial Statements
Beta
Revenue$1.56B
Operating Expenses$1.30B
Operating Income$256.00M
Interest Expense$88.00M
Net Income$108.00M
EPS (Basic)$0.45
EPS (Diluted)$0.45
Shares Outstanding (Basic)242.60M

Key Highlights

  • 1Net income increased by 11.3% to $108 million in Q1 2015 compared to $97 million in Q1 2014.
  • 2Earnings per share (basic) rose to $0.45 from $0.40 year-over-year.
  • 3Higher rates and increased rate base investment at Ameren Illinois and ATXI were key drivers of earnings growth.
  • 4Significant capital expenditures are planned, with over $9.3 billion expected between 2015 and 2019, focused on infrastructure and environmental compliance.
  • 5Ameren Missouri received regulatory approval for an electric rate increase of $122 million.
  • 6Ameren Illinois' electric delivery service formula rate framework was extended through 2019.
  • 7The company's balance sheet shows total assets of $22.88 billion and total liabilities and equity of $22.88 billion as of March 31, 2015.

Frequently Asked Questions

The increase in net income was primarily driven by higher rates and increased rate base investments at Ameren Illinois and ATXI electric transmission service, lower other operations and maintenance expenses at Ameren Missouri, and decreased interest expenses at the parent company. These factors were partially offset by decreased energy demand due to milder weather and a provision for potential refunds related to FERC-regulated transmission service.

Ameren expects to make significant capital expenditures, totaling up to $9.3 billion from 2015 through 2019. These investments are primarily aimed at improving utility infrastructure, complying with environmental regulations, and supporting electric transmission projects.

Key regulatory developments include Ameren Missouri receiving approval for an electric rate increase of $122 million, effective May 30, 2015, and Ameren Illinois having its electric delivery service formula rate framework extended until the end of 2019. Additionally, Ameren Illinois filed for a natural gas delivery service rate increase and Ameren Missouri is reviewing its energy efficiency plan.

Ameren's liquidity is supported by operating cash flows, available cash, and credit facilities. The company has access to $2.1 billion in credit capacity through its 2012 Credit Agreements. In April 2015, Ameren Missouri issued $250 million in senior secured notes to repay short-term debt. The company expects its cash used for capital expenditures and dividends to exceed cash provided by operating activities but does not anticipate the need for public equity issuances.