01—Abstract
Summary
Summary of the 10-Q filed November 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Alliant Energy Corporation's Form 10-Q for the quarter ended September 30, 2024 reports consolidated net income attributable to common shareowners of $295 milliona, or $1.15 diluted EPS, for the three months, up from $259 million, or $1.02, a year earlier.
For the nine months, net income was $540 millionb, or $2.10 diluted EPS, compared with $582 million, or $2.31, in 2023. The nine-month decline reflects a $60 million pre-tax non-cash asset valuation charge for IPL's Lansing Generating Station and a $20 million pre-tax ARO charge for IPL's steam business, both recorded in the second quarter of 2024. Results also reflect higher interest expense and depreciation, partly offset by higher revenue requirements from WPL's capital investments.
Total revenues were $3.01 billionc for the nine months versus $3.07 billion a year earlier. Key developments include IUC approval in September 2024 of a partial settlement for IPL's retail electric and gas rate review, with annual base rate increases of $185 million for electric and $10 million for gas effective October 1, 2024, and a retail electric base rate moratorium through September 2029. The revised CCR Rule led to additional AROs of $355 million for Alliant Energy in the second quarter of 2024.
Total assets were $22.83 billiond at September 30, 2024, and cash and cash equivalents rose to $827 million from $62 million at year-end 2023, while long-term debt increased to $9.25 billion from $8.23 billion. The filing also discloses a planned fourth-quarter 2024 restructuring with pre-tax charges of $25 million to $30 million, a 6% increase in the targeted 2025 annual common stock dividend to $2.03 per share, and expected 2025 financings including up to $600 million of IPL long-term debt. WPL's approximately 1,100 MW of new solar generation is expected to exceed prior cost estimates by about $195 million, though the company concluded no probable disallowance existed as of September 30, 2024.
02—Key points
Key Highlights
- Q3 2024 net income attributable to common shareowners was $295 million ($1.15 diluted EPS), up from $259 million ($1.02) in Q3 2023.
- Nine-month net income was $540 million ($2.10 diluted EPS), down from $582 million ($2.31), including a $60 million pre-tax Lansing Generating Station asset valuation charge.
- IUC approved IPL rate review order in September 2024: $185 million annual retail electric base rate increase, $10 million retail gas increase, effective October 1, 2024, and a base rate moratorium through September 2029.
- Revised CCR Rule drove additional AROs of $355 million for Alliant Energy in Q2 2024, subject to future adjustment.
- WPL's approximately 1,100 MW of solar generation is expected to exceed PSCW-approved cost estimates by about $195 million; no probable disallowance was concluded as of September 30, 2024.
- Cash and cash equivalents were $827 million at September 30, 2024, versus $62 million at December 31, 2023; long-term debt rose to $9.25 billion from $8.23 billion.
- Common stock dividend target for 2025 increased 6% to $2.03 per share, and a Q4 2024 restructuring is expected to produce pre-tax charges of $25 million to $30 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Alliant Energy kept $0.27.
- Revenue$1.08B100.0%
- Cost of revenue−$165.0M15.3%
- Gross profit$916.0M84.7%
- Operating costs−$603.0M55.8%
- Operating income$313.0M29.0%
- Interest, other & tax−$18.0M1.7%
- Net income$295.0M27.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 1, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.08B$1.08B | +0.4% |
| Cost of Revenue | $165.00M$154.00M | +7.1% |
| Gross Profit | $916.00M$923.00M | −0.8% |
| Operating Expenses | $768.00M$755.00M | +1.7% |
| Operating Income | $313.00M$322.00M | −2.8% |
| Interest Expense | $114.00M$99.00M | +15.2% |
| Net Income | $295.00M$259.00M | +13.9% |
| EPS (Basic) | $1.15$1.02 | +12.7% |
| EPS (Diluted) | $1.15$1.02 | +12.7% |
| Shares Outstanding (Basic) | 256.60M253.50M | +1.2% |
| Shares Outstanding (Diluted) | 256.90M253.80M | +1.2% |
05—Questions
Frequently Asked Questions
Why did Alliant Energy's earnings decline for the nine months ended September 30, 2024?
Nine-month net income fell to $540 million ($2.10 diluted EPS) from $582 million ($2.31) in 2023. The filing attributes the decline primarily to the $60 million pre-tax asset valuation charge for IPL's Lansing Generating Station and the $20 million pre-tax ARO charge for IPL's steam business, both recorded in the second quarter of 2024. Higher interest expense and depreciation also weighed on results, partially offset by higher revenue requirements at WPL.
What did the IPL rate review order approved in September 2024 provide?
The IUC order authorized annual base rate increases of $185 million for IPL's retail electric customers and $10 million for retail gas customers for the October 2024 through September 2025 Test Period, effective October 1, 2024. It also established a retail electric base rate moratorium through September 2029, a 9.65% return on common equity for assets without advance ratemaking principles, and an electric earnings sharing mechanism beginning in 2025.
What is the financial impact of the revised CCR Rule?
Substantially due to the revised CCR Rule enacted in May 2024, Alliant Energy recorded additional AROs of $355 million, IPL recorded $102 million and WPL recorded $253 million in the second quarter of 2024. The filing states these amounts may be adjusted as site closure plans are refined and could result in a material change to recorded amounts.
What are the key capital and financing plans investors should note?
The filing shows anticipated construction and acquisition expenditures for 2024 through 2028 of $2.03 billion in 2024 rising to $3.02 billion in 2027 for Alliant Energy. For 2025, IPL expects to issue up to $600 million of long-term debt, AEF and/or the parent expect up to $600 million in aggregate, and Alliant Energy expects to issue up to $25 million of common stock through its Shareowner Direct Plan.
06—Continue