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Alliant Energy Annual Report, Year Ended Dec 31, 2004

Filing Date
Filed March 4, 2005
Period End
December 31, 2004
Security
LNT
In the record · 2016–202610-K1110-Q338-K136

LNT filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 136 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Mar ’22Mar ’22
  4. Leadership change8-K · Jan ’26Jan ’26

01—Abstract

Summary

Summary of the 10-K filed March 4, 2005. Cited figures are marked; the original filing is the authoritative source.

Alliant Energy Corporation (filed as Alliant Energy Corporation, NYSE: LNT) reports consolidated 2004 operating revenues of $2,958.7 milliona and net income of $145.5 million, or $1.28 diluted EPS, versus $183.5 million ($1.81) in 2003.

Income from continuing operations rose to $210.8 millionb ($1.85 per diluted share) from $156.0 million ($1.54), while the loss from discontinued operations of $65.3 million ($0.57 per share) drove the decline in reported net income. The company describes its domestic utility business (IPL and WPL) as its core business and primary source of earnings and cash flows; domestic utility income from continuing operations was $221.4 million in 2004 versus $197.2 million in 2003, aided by rate increases, a lower effective tax rate and weather-normalized sales growth, offset in part by extremely mild weather that management estimates reduced after-tax earnings by $22 to $25 million. The company is pursuing a strategy to streamline its portfolio: it is selling its nuclear interests (WPL's 41% of Kewaunee and IPL's 70% of Duane Arnold Energy Center), Illinois utility properties, and several non-regulated businesses, with proceeds expected for debt reduction.

Alliant Energy's debt-to-total capitalization ratio was 48% at year-end, compared with 61% in early 2003, and its planned 1,600 MW domestic generation build-out by 2010 is in progress, including a 300 MW Sheboygan Falls facility expected to cost about $150 millionc. Risks highlighted in the filing include the outcome of an IRS Technical Advice Memorandum on exchangeable note interest deductions, Brazilian arbitration, China coal cost increases, and a Ottumwa Generating Station outage and Kewaunee shutdown in early 2005.

02—Key points

Key Highlights

  1. Net income fell to $145.5 million ($1.28 diluted EPS) from $183.5 million ($1.81) in 2003, reflecting a $65.3 million loss from discontinued operations.
  2. Income from continuing operations increased to $210.8 million ($1.85 diluted EPS) from $156.0 million ($1.54), with domestic utility income from continuing operations at $221.4 million versus $197.2 million.
  3. Consolidated operating revenues were $2,958.7 million in 2004 compared with $2,866.8 million in 2003.
  4. Debt-to-total capitalization improved to 48% at year-end 2004 from 61% in early 2003, and the company repaid debt using asset sale proceeds.
  5. Planned divestitures include WPL's 41% interest in Kewaunee, IPL's 70% interest in DAEC, Illinois utility properties, and several non-regulated businesses; the Kewaunee sale is pending a PSCW decision expected in March 2005.
  6. Management estimated that mild 2004 weather reduced after-tax earnings by $22 to $25 million.
  7. Possible adverse outcome of an IRS Technical Advice Memorandum could affect results if interest deductions on Resources' exchangeable senior notes must be capitalized.

03—Questions

Frequently Asked Questions

  1. How did Alliant Energy perform in 2004 compared with 2003?

    Net income was $145.5 million, or $1.28 per diluted share, compared with $183.5 million, or $1.81 per diluted share, in 2003. Income from continuing operations increased to $210.8 million ($1.85 per diluted share) from $156.0 million ($1.54), but a $65.3 million loss from discontinued operations reduced reported net income.

  2. What drove the improvement in domestic utility earnings?

    The filing attributes higher domestic utility earnings to rate increases, a lower effective income tax rate and weather-normalized sales growth, partly offset by higher other operating expenses. Domestic utility income from continuing operations was $221.4 million in 2004 versus $197.2 million in 2003.

  3. What asset sales and divestitures is the company pursuing?

    The company is selling its nuclear interests in Kewaunee (WPL's 41%) and Duane Arnold Energy Center (IPL's 70%), its Illinois electric and gas utility properties, and several non-regulated businesses including its energy services business and oil and gas gathering pipelines. Proceeds are expected to be used for debt reduction and general corporate purposes.

  4. What are the main risks identified in the filing?

    Key risks include a possible adverse IRS Technical Advice Memorandum on interest deductions tied to Resources' exchangeable senior notes, unresolved arbitration and cash-flow issues in Brazil, rising coal and transportation costs at its China facilities, and the Ottumwa Generating Station and Kewaunee outages in early 2005. The filing also notes that credit ratings could be downgraded, which would raise borrowing costs.

  5. What is the company's domestic generation plan?

    In 2003 Alliant Energy announced a plan to add 1,600 megawatts of domestic utility generating capacity by 2010. Progress includes the 565 MW Emery facility placed in service in May 2004 and a 300 MW simple-cycle gas plant under construction near Sheboygan Falls, Wisconsin, expected to cost about $150 million and be completed by summer 2005.

04—Continue

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