Exact Name of Registrant
|
Commission
|
I.R.S. Employer
|
as Specified in Its Charter
|
File Number
|
Identification No.
|
Hawaiian Electric Industries, Inc.
|
1-8503
|
99-0208097
|
Hawaiian Electric Company, Inc.
|
1-4955
|
99-0040500
|
Registrant
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Hawaiian Electric Industries, Inc.
|
Common Stock, Without Par Value
|
HE
|
New York Stock Exchange
|
Hawaiian Electric Industries, Inc.
|
☐
|
Hawaiian Electric Company, Inc.
|
☐
|
Hawaiian Electric Industries, Inc.
|
☐
|
Hawaiian Electric Company, Inc.
|
☐
|
(d) Exhibits
|
|
HEI Exhibit 99
|
News release, dated November 1, 2019, “HEI Reports Third Quarter 2019 Earnings”
|
HAWAIIAN ELECTRIC INDUSTRIES, INC.
|
HAWAIIAN ELECTRIC COMPANY, INC.
|
(Registrant)
|
(Registrant)
|
/s/ Gregory C. Hazelton
|
/s/ Tayne S. Y. Sekimura
|
Gregory C. Hazelton
|
Tayne S. Y. Sekimura
|
Executive Vice President, Chief Financial
|
Senior Vice President and
|
Officer and Treasurer
|
Chief Financial Officer
|
|
|
|
|
Date: November 1, 2019
|
Date: November 1, 2019
|
|
|
Exhibit No.
|
Description
|
News release, dated November 1, 2019, “HEI Reports Third Quarter 2019 Earnings”
|
Contact:
|
Julie R. Smolinski
|
Telephone: (808) 543-7300
|
|
Director, Investor Relations & Strategic Planning
|
E-mail: ir@hei.com
|
|
|
|
|
|
|
•
|
$6 million revenue increase resulting from rate increases and higher rate adjustment mechanism (RAM) revenues, including $2 million from Hawaiian Electric (Oahu), $3 million from Maui Electric (Maui County), and $1 million from Hawaii Electric Light (Hawaii Island);
|
•
|
$2 million revenue increase from recovery of the Schofield generation project under the major project interim recovery (MPIR) mechanism;
|
•
|
$2 million from higher AFUDC and lower interest expense; and
|
•
|
$1 million in revenues from pole attachment fees.
|
•
|
$8 million higher operations and maintenance expenses2 compared to the third quarter of 2018, primarily due to higher overhaul and maintenance expenses for generating facilities and higher vegetation management expenses;
|
•
|
$5 million in net income impact experienced in the third quarter of 2018 due to net favorable tax adjustments primarily related to differences between the 2017 year-end tax accrual and the filing of the 2017 tax return. There were no significant differences between the 2018 year-end tax accrual and the filing of the 2018 tax return that impacted net income in 2019; and
|
•
|
$2 million higher depreciation expense due to increasing investments for the integration of more renewable energy, improved customer reliability and greater system efficiency.
|
Hawaiian Electric Industries, Inc. (HEI) and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME DATA
(Unaudited)
|
||||||||||||||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
(in thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Electric utility
|
|
$
|
688,330
|
|
|
$
|
687,409
|
|
|
$
|
1,900,609
|
|
|
$
|
1,865,962
|
|
Bank
|
|
83,201
|
|
|
80,496
|
|
|
247,940
|
|
|
233,019
|
|
||||
Other
|
|
4
|
|
|
143
|
|
|
86
|
|
|
218
|
|
||||
Total revenues
|
|
771,535
|
|
|
768,048
|
|
|
2,148,635
|
|
|
2,099,199
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Electric utility
|
|
616,537
|
|
|
613,373
|
|
|
1,716,562
|
|
|
1,685,413
|
|
||||
Bank
|
|
54,240
|
|
|
53,232
|
|
|
171,605
|
|
|
153,951
|
|
||||
Other
|
|
3,450
|
|
|
3,379
|
|
|
12,589
|
|
|
11,083
|
|
||||
Total expenses
|
|
674,227
|
|
|
669,984
|
|
|
1,900,756
|
|
|
1,850,447
|
|
||||
Operating income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Electric utility
|
|
71,793
|
|
|
74,036
|
|
|
184,047
|
|
|
180,549
|
|
||||
Bank
|
|
28,961
|
|
|
27,264
|
|
|
76,335
|
|
|
79,068
|
|
||||
Other
|
|
(3,446
|
)
|
|
(3,236
|
)
|
|
(12,503
|
)
|
|
(10,865
|
)
|
||||
Total operating income
|
|
97,308
|
|
|
98,064
|
|
|
247,879
|
|
|
248,752
|
|
||||
Retirement defined benefits expense—other than service costs
|
|
(648
|
)
|
|
(1,276
|
)
|
|
(2,172
|
)
|
|
(4,673
|
)
|
||||
Interest expense, net—other than on deposit liabilities and other bank borrowings
|
|
(22,425
|
)
|
|
(22,523
|
)
|
|
(69,081
|
)
|
|
(66,042
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
1,208
|
|
|
1,006
|
|
|
3,465
|
|
|
3,815
|
|
||||
Allowance for equity funds used during construction
|
|
3,250
|
|
|
1,962
|
|
|
9,335
|
|
|
8,239
|
|
||||
Income before income taxes
|
|
78,693
|
|
|
77,233
|
|
|
189,426
|
|
|
190,091
|
|
||||
Income taxes
|
|
14,803
|
|
|
10,862
|
|
|
36,390
|
|
|
36,473
|
|
||||
Net income
|
|
63,890
|
|
|
66,371
|
|
|
153,036
|
|
|
153,618
|
|
||||
Preferred stock dividends of subsidiaries
|
|
471
|
|
|
471
|
|
|
1,417
|
|
|
1,417
|
|
||||
Net income for common stock
|
|
$
|
63,419
|
|
|
$
|
65,900
|
|
|
$
|
151,619
|
|
|
$
|
152,201
|
|
Basic earnings per common share
|
|
$
|
0.58
|
|
|
$
|
0.61
|
|
|
$
|
1.39
|
|
|
$
|
1.40
|
|
Diluted earnings per common share
|
|
$
|
0.58
|
|
|
$
|
0.60
|
|
|
$
|
1.39
|
|
|
$
|
1.40
|
|
Dividends declared per common share
|
|
$
|
0.32
|
|
|
$
|
0.31
|
|
|
$
|
0.96
|
|
|
$
|
0.93
|
|
Weighted-average number of common shares outstanding
|
|
108,973
|
|
|
108,879
|
|
|
108,941
|
|
|
108,847
|
|
||||
Weighted-average shares assuming dilution
|
|
109,363
|
|
|
109,055
|
|
|
109,378
|
|
|
109,090
|
|
||||
Net income (loss) for common stock by segment
|
|
|
|
|
|
|
|
|
||||||||
Electric utility
|
|
$
|
46,779
|
|
|
$
|
49,712
|
|
|
$
|
111,479
|
|
|
$
|
108,356
|
|
Bank
|
|
22,888
|
|
|
21,221
|
|
|
60,743
|
|
|
60,742
|
|
||||
Other
|
|
(6,248
|
)
|
|
(5,033
|
)
|
|
(20,603
|
)
|
|
(16,897
|
)
|
||||
Net income for common stock
|
|
$
|
63,419
|
|
|
$
|
65,900
|
|
|
$
|
151,619
|
|
|
$
|
152,201
|
|
Comprehensive income attributable to Hawaiian Electric Industries, Inc.
|
|
$
|
66,716
|
|
|
$
|
61,311
|
|
|
$
|
177,856
|
|
|
$
|
131,014
|
|
Return on average common equity (twelve months ended)1
|
|
|
|
|
|
9.2
|
%
|
|
8.7
|
%
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
($ in thousands, except per barrel amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
$
|
688,330
|
|
|
$
|
687,409
|
|
|
$
|
1,900,609
|
|
|
$
|
1,865,962
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
||||||
Fuel oil
|
|
199,093
|
|
|
206,551
|
|
|
541,322
|
|
|
545,236
|
|
||||
Purchased power
|
|
175,037
|
|
|
177,590
|
|
|
472,336
|
|
|
478,238
|
|
||||
Other operation and maintenance
|
|
124,415
|
|
|
113,553
|
|
|
361,805
|
|
|
333,805
|
|
||||
Depreciation
|
|
53,935
|
|
|
50,983
|
|
|
161,795
|
|
|
151,810
|
|
||||
Taxes, other than income taxes
|
|
64,057
|
|
|
64,696
|
|
|
179,304
|
|
|
176,324
|
|
||||
Total expenses
|
|
616,537
|
|
|
613,373
|
|
|
1,716,562
|
|
|
1,685,413
|
|
||||
Operating income
|
|
71,793
|
|
|
74,036
|
|
|
184,047
|
|
|
180,549
|
|
||||
Allowance for equity funds used during construction
|
|
3,250
|
|
|
1,962
|
|
|
9,335
|
|
|
8,239
|
|
||||
Retirement defined benefits expense—other than service costs
|
|
(723
|
)
|
|
(682
|
)
|
|
(2,127
|
)
|
|
(2,934
|
)
|
||||
Interest expense and other charges, net
|
|
(17,429
|
)
|
|
(18,968
|
)
|
|
(53,945
|
)
|
|
(54,822
|
)
|
||||
Allowance for borrowed funds used during construction
|
|
1,208
|
|
|
1,006
|
|
|
3,465
|
|
|
3,815
|
|
||||
Income before income taxes
|
|
58,099
|
|
|
57,354
|
|
|
140,775
|
|
|
134,847
|
|
||||
Income taxes
|
|
10,822
|
|
|
7,144
|
|
|
27,800
|
|
|
24,995
|
|
||||
Net income
|
|
47,277
|
|
|
50,210
|
|
|
112,975
|
|
|
109,852
|
|
||||
Preferred stock dividends of subsidiaries
|
|
228
|
|
|
228
|
|
|
686
|
|
|
686
|
|
||||
Net income attributable to Hawaiian Electric
|
|
47,049
|
|
|
49,982
|
|
|
112,289
|
|
|
109,166
|
|
||||
Preferred stock dividends of Hawaiian Electric
|
|
270
|
|
|
270
|
|
|
810
|
|
|
810
|
|
||||
Net income for common stock
|
|
$
|
46,779
|
|
|
$
|
49,712
|
|
|
$
|
111,479
|
|
|
$
|
108,356
|
|
Comprehensive income attributable to Hawaiian Electric
|
|
$
|
46,805
|
|
|
$
|
49,740
|
|
|
$
|
111,552
|
|
|
$
|
108,441
|
|
OTHER ELECTRIC UTILITY INFORMATION
|
|
|
|
|
|
|
|
|
||||||||
Kilowatthour sales (millions)
|
|
|
|
|
|
|
|
|
||||||||
Hawaiian Electric
|
|
1,823
|
|
|
1,761
|
|
|
4,840
|
|
|
4,855
|
|
||||
Hawaii Electric Light
|
|
279
|
|
|
277
|
|
|
777
|
|
|
796
|
|
||||
Maui Electric
|
|
312
|
|
|
291
|
|
|
832
|
|
|
818
|
|
||||
|
|
2,414
|
|
|
2,329
|
|
|
6,449
|
|
|
6,469
|
|
||||
Average fuel oil cost per barrel
|
|
$
|
82.30
|
|
|
$
|
90.93
|
|
|
$
|
83.64
|
|
|
$
|
84.67
|
|
Return on average common equity (twelve months ended)1
|
|
|
|
|
|
7.6
|
%
|
|
7.2
|
%
|
|
|
Three months ended
|
|
Nine months ended September 30
|
||||||||||||||||
($ in thousands)
|
|
September 30, 2019
|
|
June 30, 2019
|
|
September 30, 2018
|
|
2019
|
|
2018
|
||||||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest and fees on loans
|
|
$
|
59,260
|
|
|
$
|
58,620
|
|
|
$
|
55,885
|
|
|
$
|
175,740
|
|
|
$
|
163,318
|
|
Interest and dividends on investment securities
|
|
7,599
|
|
|
7,535
|
|
|
9,300
|
|
|
25,762
|
|
|
27,130
|
|
|||||
Total interest and dividend income
|
|
66,859
|
|
|
66,155
|
|
|
65,185
|
|
|
201,502
|
|
|
190,448
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest on deposit liabilities
|
|
4,384
|
|
|
4,287
|
|
|
3,635
|
|
|
12,923
|
|
|
9,876
|
|
|||||
Interest on other borrowings
|
|
422
|
|
|
411
|
|
|
404
|
|
|
1,361
|
|
|
1,293
|
|
|||||
Total interest expense
|
|
4,806
|
|
|
4,698
|
|
|
4,039
|
|
|
14,284
|
|
|
11,169
|
|
|||||
Net interest income
|
|
62,053
|
|
|
61,457
|
|
|
61,146
|
|
|
187,218
|
|
|
179,279
|
|
|||||
Provision for loan losses
|
|
3,315
|
|
|
7,688
|
|
|
6,033
|
|
|
17,873
|
|
|
12,337
|
|
|||||
Net interest income after provision for loan losses
|
|
58,738
|
|
|
53,769
|
|
|
55,113
|
|
|
169,345
|
|
|
166,942
|
|
|||||
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Fees from other financial services
|
|
5,085
|
|
|
4,798
|
|
|
4,543
|
|
|
14,445
|
|
|
13,941
|
|
|||||
Fee income on deposit liabilities
|
|
5,320
|
|
|
5,004
|
|
|
5,454
|
|
|
15,402
|
|
|
15,781
|
|
|||||
Fee income on other financial products
|
|
1,706
|
|
|
1,830
|
|
|
1,746
|
|
|
5,129
|
|
|
5,075
|
|
|||||
Bank-owned life insurance
|
|
1,660
|
|
|
2,390
|
|
|
2,663
|
|
|
6,309
|
|
|
4,667
|
|
|||||
Mortgage banking income
|
|
1,490
|
|
|
976
|
|
|
169
|
|
|
3,080
|
|
|
1,399
|
|
|||||
Gains on sale of investment securities, net
|
|
653
|
|
|
—
|
|
|
—
|
|
|
653
|
|
|
—
|
|
|||||
Other income, net
|
|
428
|
|
|
534
|
|
|
736
|
|
|
1,420
|
|
|
1,708
|
|
|||||
Total noninterest income
|
|
16,342
|
|
|
15,532
|
|
|
15,311
|
|
|
46,438
|
|
|
42,571
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Compensation and employee benefits
|
|
25,364
|
|
|
25,750
|
|
|
23,952
|
|
|
76,626
|
|
|
72,047
|
|
|||||
Occupancy
|
|
5,694
|
|
|
5,479
|
|
|
4,363
|
|
|
15,843
|
|
|
12,837
|
|
|||||
Data processing
|
|
3,763
|
|
|
3,852
|
|
|
3,583
|
|
|
11,353
|
|
|
10,587
|
|
|||||
Services
|
|
2,829
|
|
|
2,606
|
|
|
2,485
|
|
|
7,861
|
|
|
8,560
|
|
|||||
Equipment
|
|
2,163
|
|
|
2,189
|
|
|
1,783
|
|
|
6,416
|
|
|
5,385
|
|
|||||
Office supplies, printing and postage
|
|
1,297
|
|
|
1,663
|
|
|
1,556
|
|
|
4,320
|
|
|
4,554
|
|
|||||
Marketing
|
|
1,142
|
|
|
1,323
|
|
|
993
|
|
|
3,455
|
|
|
2,723
|
|
|||||
FDIC insurance
|
|
(5
|
)
|
|
628
|
|
|
638
|
|
|
1,249
|
|
|
2,078
|
|
|||||
Other expense
|
|
3,676
|
|
|
4,519
|
|
|
4,240
|
|
|
12,049
|
|
|
12,897
|
|
|||||
Total noninterest expense
|
|
45,923
|
|
|
48,009
|
|
|
43,593
|
|
|
139,172
|
|
|
131,668
|
|
|||||
Income before income taxes
|
|
29,157
|
|
|
21,292
|
|
|
26,831
|
|
|
76,611
|
|
|
77,845
|
|
|||||
Income taxes
|
|
6,269
|
|
|
4,276
|
|
|
5,610
|
|
|
15,868
|
|
|
17,103
|
|
|||||
Net income
|
|
$
|
22,888
|
|
|
$
|
17,016
|
|
|
$
|
21,221
|
|
|
$
|
60,743
|
|
|
$
|
60,742
|
|
Comprehensive income
|
|
$
|
26,697
|
|
|
$
|
31,291
|
|
|
$
|
16,480
|
|
|
$
|
85,079
|
|
|
$
|
39,944
|
|
OTHER BANK INFORMATION (annualized %, except as of period end)
|
|
|
|
|
|
|
|
|
||||||||||||
Return on average assets
|
|
1.29
|
|
|
0.96
|
|
|
1.22
|
|
|
1.14
|
|
|
1.18
|
|
|||||
Return on average equity
|
|
13.75
|
|
|
10.46
|
|
|
13.80
|
|
|
12.44
|
|
|
13.32
|
|
|||||
Return on average tangible common equity
|
|
15.68
|
|
|
11.97
|
|
|
15.93
|
|
|
14.23
|
|
|
15.40
|
|
|||||
Net interest margin
|
|
3.82
|
|
|
3.82
|
|
|
3.81
|
|
|
3.87
|
|
|
3.78
|
|
|||||
Efficiency ratio
|
|
58.58
|
|
|
62.36
|
|
|
57.02
|
|
|
59.56
|
|
|
59.35
|
|
|||||
Net charge-offs to average loans outstanding
|
|
0.69
|
|
|
0.29
|
|
|
0.40
|
|
|
0.46
|
|
|
0.33
|
|
|||||
As of period end
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual loans to loans receivable held for investment
|
|
0.63
|
|
|
0.79
|
|
|
0.59
|
|
|
|
|
|
|||||||
Allowance for loan losses to loans outstanding
|
|
1.04
|
|
|
1.17
|
|
|
1.14
|
|
|
|
|
|
|||||||
Tangible common equity to tangible assets
|
|
8.4
|
|
|
8.2
|
|
|
7.7
|
|
|
|
|
|
|||||||
Tier-1 leverage ratio
|
|
8.8
|
|
|
8.7
|
|
|
8.6
|
|
|
|
|
|
|||||||
Total capital ratio
|
|
14.0
|
|
|
14.0
|
|
|
13.8
|
|
|
|
|
|
|||||||
Dividend paid to HEI (via ASB Hawaii, Inc.) ($ in millions)
|
|
$
|
14.0
|
|
|
$
|
15.0
|
|
|
$
|
14.0
|
|
|
$
|
47.0
|
|
|
$
|
36.0
|
|