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Jun 30, 2020
Spire Q3 2020 Earnings Report
Spire's financial performance was impacted by non-cash impairment charges, while gas utilities showed improved contribution.
Key Takeaways
Spire Inc. reported a net loss of $92.3 million, or $1.87 per diluted share, for the fiscal third quarter ended June 30, 2020, which included non-cash, pre-tax impairment charges of $148.6 million. Net economic earnings (NEE) were $7.3 million, or $0.07 per share. The company expects FY20 NEE to be $3.70 - $3.75 per share and targets long-term NEE per share growth at 4-7%.
Net loss of $92.3 million, or $1.87 per diluted share, impacted by $148.6 million in non-cash, pre-tax impairment charges.
Net economic earnings (NEE) of $7.3 million, with NEE per share of $0.07.
Gas Utility segment benefited from higher ISRS revenues and customer growth, combined with lower operation and maintenance (O&M) expenses.
FY20 NEE expected to be $3.70 - $3.75 per share; long-term NEE per share growth targeted at 4-7%.
Spire
Spire
Spire Revenue by Segment
Revenue by Segment
Gas Utility Revenue
CapyFin.comGas Marketing Revenue
CapyFin.com Forward Guidance
Spire expects NEE per share for fiscal 2020 to be $3.70 - $3.75. The company affirms its annual long-term NEE per share growth target of 4-7%, based on growth in its utility rate base of 7-8%.
Positive Outlook
- Year-to-date results and greater clarity regarding ISRS.
- Annual long-term NEE per share growth target of 4-7%.
- Utility rate base growth of 7-8%.
- Coronavirus impacts to be approximately $0.09 per share.
- Impact of the ISRS refund on NEE is $0.04 per share in fiscal 2020.
Challenges Ahead
- Coronavirus impacts expected to be approximately $0.09 per share.
- Lower commercial demand and fees due to COVID-19.
- Higher bad debt costs due to COVID-19.
- Impact of the ISRS refund on NEE is $0.04 per share in fiscal 2020.
- Unspecified risks and uncertainties that may affect future operating results
Revenue & Expenses
Visualization of income flow from segment revenue to net income