sr-10q_20181231.htm

 

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q

(Mark One)

 

[ X ]

QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2018

 

or

[    ]

TRANSITION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to

 

Commission

File Number

 

Name of Registrant, Address of Principal

Executive Offices and Telephone Number

 

State of Incorporation

 

I.R.S. Employer Identification Number

 

 

 

 

 

 

 

1-16681

 

Spire Inc.

700 Market Street

St. Louis, MO 63101

314-342-0500

 

Missouri

 

74-2976504

 

 

 

 

 

 

 

1-1822

 

Spire Missouri Inc.
700 Market Street
St. Louis, MO 63101
314-342-0500

 

Missouri

 

43-0368139

 

 

 

 

 

 

 

2-38960

 

Spire Alabama Inc.

2101 6th Avenue North

Birmingham, AL 35203

205-326-8100

 

Alabama

 

63-0022000

 

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report) and (2) has been subject to such filing requirements for the past 90 days.

Spire Inc.

 

Yes [ X ]

 

No [    ]

Spire Missouri Inc.

 

Yes [ X ]

 

No [    ]

Spire Alabama Inc.

 

Yes [ X ]

 

No [    ]

 

Indicate by check mark whether each registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Spire Inc.

 

Yes [ X ]

 

No [    ]

Spire Missouri Inc.

 

Yes [ X ]

 

No [    ]

Spire Alabama Inc.

 

Yes [ X ]

 

No [    ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

Large

accelerated filer

 

Accelerated

filer

 

Non-

accelerated filer

 

Smaller

reporting company

 

Emerging growth company

Spire Inc.

 

X

 

 

 

 

 

 

 

 

Spire Missouri Inc.

 

 

 

 

 

X

 

 

 

 

Spire Alabama Inc.

 

 

 

 

 

X

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Spire Inc.

 

       [    ]

 

 

Spire Missouri Inc.

 

       [    ]

 

 

Spire Alabama Inc.

 

       [    ]

 

 

 

Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Spire Inc.

 

Yes [    ]

 

No [ X ]

Spire Missouri Inc.

 

Yes [    ]

 

No [ X ]

Spire Alabama Inc.

 

Yes [    ]

 

No [ X ]

 


The number of shares outstanding of each registrant’s common stock as of February 4, 2019, was as follows:

Spire Inc.

 

Common Stock, par value $1.00 per share

 

50,740,277

 

Spire Missouri Inc.

 

Common Stock, par value $1.00 per share (all owned by Spire Inc.)

 

24,577

 

Spire Alabama Inc.

 

Common Stock, par value $0.01 per share (all owned by Spire Inc.)

 

1,972,052

 

 

Spire Missouri Inc. and Spire Alabama Inc. meet the conditions set forth in General Instructions H(1)(a) and (b) to Form 10-Q and are therefore filing this Form 10-Q with the reduced disclosure format specified in General Instructions H(2) to Form 10-Q.

 

This combined Form 10-Q represents separate filings by Spire Inc., Spire Missouri Inc., and Spire Alabama Inc. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Each registrant makes no representation as to information relating to the other registrants, except that information relating to Spire Missouri Inc. and Spire Alabama Inc. are also attributed to Spire Inc.

 

 

 

 

 

 

 

 

 


 

TABLE OF CONTENTS

 

 

 

 

 

Page No.

 

 

 

GLOSSARY

2

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

Item 1

Financial Statements (Unaudited):

 

 

Spire Inc.

 

 

 

Condensed Consolidated Statements of Income

4

 

 

Condensed Consolidated Statements of Comprehensive Income

5

 

 

Condensed Consolidated Balance Sheets

6

 

 

Condensed Consolidated Statements of Shareholders’ Equity

8

 

 

Condensed Consolidated Statements of Cash Flows

9

 

Spire Missouri Inc.

 

 

 

Condensed Statements of Comprehensive Income

10

 

 

Condensed Balance Sheets

11

 

 

Condensed Statements of Shareholder’s Equity

13

 

 

Condensed Statements of Cash Flows

14

 

Spire Alabama Inc.

 

 

 

Condensed Statements of Income

15

 

 

Condensed Balance Sheets

16

 

 

Condensed Statements of Shareholder’s Equity

18

 

 

Condensed Statements of Cash Flows

19

 

Notes to Financial Statements

 

 

 

Note 1. Summary of Significant Accounting Policies

20

 

 

Note 2. Revenue Recognition

23

 

 

Note 3. Earnings Per Share

25

 

 

Note 4. Regulatory Matters

26

 

 

Note 5. Financing Arrangements and Long-term Debt

29

 

 

Note 6. Fair Value of Financial Instruments

30

 

 

Note 7. Fair Value Measurements

31

 

 

Note 8. Concentrations of Credit Risk

35

 

 

Note 9. Pension Plans and Other Postretirement Benefits

35

 

 

Note 10. Information by Operating Segment

38

 

 

Note 11. Commitments and Contingencies

39

 

 

Note 12. Income Taxes

43

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

44

 

 

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

57

 

 

 

 

 

Item 4

Controls and Procedures

57

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

Item 1

Legal Proceedings

58

 

 

 

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

58

 

 

 

Item 6

Exhibits

59

 

 

 

 

SIGNATURES

60

 

1


 

GLOSSARY OF KEY TERMS AND ABBREVIATIONS

 

AFUDC

Allowance for Funds Used During Construction

 

PGA

Purchased Gas Adjustment

APSC

Alabama Public Service Commission

 

RSE

Rate Stabilization and Equalization

ASC

Accounting Standards Codification

 

SEC

U.S. Securities and Exchange Commission

Company

Spire Inc.

 

Spire

Spire Inc.

Degree days

The average of a day’s high and low temperature below 65, subtracted from 65, multiplied by the number of days impacted

 

Spire Alabama

Spire Alabama Inc.

FASB

Financial Accounting Standards Board

 

Spire EnergySouth

Spire EnergySouth Inc., the parent of Spire Gulf and Spire Mississippi

FERC

Federal Energy Regulatory Commission

 

Spire Gulf

Spire Gulf Inc.

GAAP

Accounting principles generally accepted in the United States of America

 

Spire Marketing

Spire Marketing Inc.

Gas Marketing

Segment including Spire Marketing, which is engaged in the non-regulated marketing of natural gas and related activities

 

Spire Mississippi

Spire Mississippi Inc.

Gas Utility

Segment including the regulated operations of the Utilities

 

Spire Missouri

Spire Missouri Inc.

GSA

Gas Supply Adjustment

 

Spire Missouri East

Spire Missouri’s eastern service territory

ISRS

Infrastructure System Replacement Surcharge

 

Spire Missouri West

Spire Missouri’s western service territory

Missouri Utilities

Spire Missouri, including Spire Missouri East and Spire Missouri West, the utilities serving Missouri

 

Spire STL Pipeline

Spire STL Pipeline LLC

MMBtu

Million British thermal units

 

Spire Storage

Spire’s physical natural gas storage operations at two facilities in Wyoming

MoPSC

Missouri Public Service Commission

 

TCJA

The Tax Cuts and Jobs Act of 2017

MSPSC

Mississippi Public Service Commission

 

U.S.

United States

NYSE

New York Stock Exchange

 

Utilities

Spire Missouri, Spire Alabama and the subsidiaries of Spire EnergySouth

O&M

Operation and maintenance expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

PART I. FINANCIAL INFORMATION

The interim financial statements included herein have been prepared by three separate registrants — Spire Inc. (“Spire” or the “Company”), Spire Missouri Inc. (“Spire Missouri” or “Missouri Utilities”) and Spire Alabama Inc. (“Spire Alabama”) — without audit, pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the financial statements and the notes thereto included in the registrants’ combined Form 10-K for the fiscal year ended September 30, 2018.

The Financial Information in this Part I includes separate financial statements (i.e., balance sheets, statements of income and comprehensive income, statements of shareholders’ equity and statements of cash flows) for Spire, Spire Missouri and Spire Alabama. The Notes to Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations are also included and presented herein on a combined basis for Spire, Spire Missouri and Spire Alabama.

3


 

Item 1. Financial Statements

SPIRE INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

 

 

Three Months Ended

December 31,

 

(In millions, except per share amounts)

 

2018

 

 

2017

 

Operating Revenues:

 

 

 

 

 

 

 

 

Gas Utility

 

$

573.8

 

 

$

541.9

 

Gas Marketing and other

 

 

28.2

 

 

 

19.9

 

Total Operating Revenues

 

 

602.0

 

 

 

561.8

 

Operating Expenses:

 

 

 

 

 

 

 

 

Gas Utility

 

 

 

 

 

 

 

 

Natural and propane gas

 

 

251.7

 

 

 

240.8

 

Operation and maintenance

 

 

102.5

 

 

 

99.0

 

Depreciation and amortization

 

 

43.7

 

 

 

40.3

 

Taxes, other than income taxes

 

 

39.2

 

 

 

36.7

 

Total Gas Utility Operating Expenses

 

 

437.1

 

 

 

416.8

 

Gas Marketing and other

 

 

59.8

 

 

 

41.0

 

Total Operating Expenses

 

 

496.9

 

 

 

457.8

 

Operating Income

 

 

105.1

 

 

 

104.0

 

Other Income, Net

 

 

2.8

 

 

 

3.3

 

Interest Charges:

 

 

 

 

 

 

 

 

Interest on long-term debt

 

 

20.4

 

 

 

20.7

 

Other interest charges

 

 

5.5

 

 

 

3.7

 

Total Interest Charges

 

 

25.9

 

 

 

24.4

 

Income Before Income Taxes

 

 

82.0

 

 

 

82.9

 

Income Tax Expense (Benefit)

 

 

14.7

 

 

 

(33.1

)

Net Income

 

$

67.3

 

 

$

116.0

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Shares Outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

50.6

 

 

 

48.2

 

Diluted

 

 

50.8

 

 

 

48.4

 

Basic Earnings Per Share

 

$

1.33

 

 

$

2.40

 

Diluted Earnings Per Share

 

$

1.32

 

 

$

2.39

 

 

 

See the accompanying Notes to Financial Statements.

4


 

SPIRE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

 

 

 

Three Months Ended

December 31,

 

(In millions)

 

2018

 

 

2017

 

Net Income

 

$

67.3

 

 

$

116.0

 

Other Comprehensive Loss, Before Tax:

 

 

 

 

 

 

 

 

Cash flow hedging derivative instruments:

 

 

 

 

 

 

 

 

Net hedging (loss) gain arising during the period

 

 

(10.4

)

 

 

0.1

 

Reclassification adjustment for income included in net income

 

 

(0.3

)

 

 

(0.4

)

Net unrealized loss on cash flow hedging derivative

   instruments

 

 

(10.7

)

 

 

(0.3

)

Net gain on defined benefit pension and other postretirement plans

 

 

 

 

 

0.1

 

Net unrealized loss on available for sale securities

 

 

 

 

 

(0.1

)

Other Comprehensive Loss, Before Tax

 

 

(10.7

)

 

 

(0.3

)

Income Tax Benefit Related to Items of Other Comprehensive Loss

 

 

(2.5

)

 

 

(0.1

)

Other Comprehensive Loss, Net of Tax

 

 

(8.2

)

 

 

(0.2

)

Comprehensive Income

 

$

59.1

 

 

$

115.8

 

 

See the accompanying Notes to Financial Statements.

5


 

SPIRE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(Dollars in millions, except per share amounts)

 

2018

 

 

2018

 

 

2017

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Utility Plant

 

$

5,754.8

 

 

$

5,653.3

 

 

$

5,351.7

 

Less: Accumulated depreciation and amortization

 

 

1,709.5

 

 

 

1,682.8

 

 

 

1,641.0

 

Net Utility Plant

 

 

4,045.3

 

 

 

3,970.5

 

 

 

3,710.7

 

Non-utility Property (net of accumulated depreciation and

   amortization of $11.1, $10.4 and $8.6 at December 31, 2018,

   September 30, 2018, and December 31, 2017, respectively)

 

 

254.5

 

 

 

174.5

 

 

 

105.3

 

Goodwill

 

 

1,171.6

 

 

 

1,171.6

 

 

 

1,171.6

 

Other Investments

 

 

69.5

 

 

 

68.7

 

 

 

66.3

 

Total Other Property and Investments

 

 

1,495.6

 

 

 

1,414.8

 

 

 

1,343.2

 

Current Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

8.4

 

 

 

4.4

 

 

 

6.7

 

Accounts receivable:

 

 

 

 

 

 

 

 

 

 

 

 

Utility

 

 

339.2

 

 

 

151.9

 

 

 

333.6

 

Other

 

 

242.1

 

 

 

167.3

 

 

 

135.3

 

Allowance for doubtful accounts

 

 

(24.6

)

 

 

(22.4

)

 

 

(21.3

)

Delayed customer billings

 

 

10.9

 

 

 

6.9

 

 

 

7.5

 

Inventories:

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas

 

 

176.2

 

 

 

175.2

 

 

 

171.6

 

Propane gas

 

 

12.0

 

 

 

12.0

 

 

 

12.0

 

Materials and supplies

 

 

24.5

 

 

 

23.1

 

 

 

21.3

 

Natural gas receivable

 

 

2.2

 

 

 

1.8

 

 

 

3.5

 

Derivative instrument assets

 

 

19.7

 

 

 

13.3

 

 

 

4.7

 

Unamortized purchased gas adjustments

 

 

3.0

 

 

 

8.2

 

 

 

77.9

 

Other regulatory assets

 

 

60.4

 

 

 

64.6

 

 

 

71.4

 

Prepayments

 

 

25.7

 

 

 

31.0

 

 

 

24.6

 

Other

 

 

5.6

 

 

 

22.3

 

 

 

3.7

 

Total Current Assets

 

 

905.3

 

 

 

659.6

 

 

 

852.5

 

Deferred Charges and Other Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory assets

 

 

655.1

 

 

 

669.8

 

 

 

716.6

 

Other

 

 

130.9

 

 

 

128.9

 

 

 

78.1

 

Total Deferred Charges and Other Assets

 

 

786.0

 

 

 

798.7

 

 

 

794.7

 

Total Assets

 

$

7,232.2

 

 

$

6,843.6

 

 

$

6,701.1

 

 

6


 

SPIRE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(UNAUDITED)

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2018

 

 

2018

 

 

2017

 

CAPITALIZATION AND LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Capitalization:

 

 

 

 

 

 

 

 

 

 

 

 

Common stock (par value $1.00 per share; 70.0 million

   shares authorized; 50.7 million, 50.7 million and

   48.3 million shares issued and outstanding at

   December 31, 2018, September 30, 2018 and

   December 31, 2017, respectively)

 

$

50.7

 

 

$

50.7

 

 

$

48.3

 

Paid-in capital

 

 

1,482.8

 

 

 

1,482.7

 

 

 

1,324.9

 

Retained earnings

 

 

752.9

 

 

 

715.6

 

 

 

703.0

 

Accumulated other comprehensive (loss) income

 

 

(1.8

)

 

 

6.4

 

 

 

3.0

 

Total Shareholders' Equity

 

 

2,284.6

 

 

 

2,255.4

 

 

 

2,079.2

 

Redeemable noncontrolling interest

 

 

 

 

 

7.9

 

 

 

6.5

 

Long-term debt (less current portion)

 

 

1,992.0

 

 

 

1,900.1

 

 

 

2,030.0

 

Total Capitalization

 

 

4,276.6

 

 

 

4,163.4

 

 

 

4,115.7

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

 

175.0

 

 

 

175.5

 

 

 

105.5

 

Notes payable

 

 

626.1

 

 

 

553.6

 

 

 

583.6

 

Accounts payable

 

 

430.9

 

 

 

290.1

 

 

 

245.6

 

Advance customer billings

 

 

19.8

 

 

 

22.7

 

 

 

27.3

 

Wages and compensation accrued

 

 

32.8

 

 

 

39.7

 

 

 

29.6

 

Dividends payable

 

 

31.3

 

 

 

30.0

 

 

 

28.1

 

Customer deposits

 

 

36.1

 

 

 

35.5

 

 

 

35.9

 

Interest accrued

 

 

27.2

 

 

 

15.2

 

 

 

26.3

 

Taxes accrued

 

 

44.6

 

 

 

65.4

 

 

 

36.0

 

Unamortized purchased gas adjustments

 

 

6.1

 

 

 

2.9

 

 

 

1.0

 

Other regulatory liabilities

 

 

30.9

 

 

 

32.8

 

 

 

20.5

 

Other

 

 

102.6

 

 

 

58.3

 

 

 

71.9

 

Total Current Liabilities

 

 

1,563.4

 

 

 

1,321.7

 

 

 

1,211.3

 

Deferred Credits and Other Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

453.2

 

 

 

435.8

 

 

 

441.0

 

Pension and postretirement benefit costs

 

 

182.1

 

 

 

180.2

 

 

 

233.6

 

Asset retirement obligations

 

 

324.5

 

 

 

321.1

 

 

 

299.7

 

Regulatory liabilities

 

 

363.4

 

 

 

354.6

 

 

 

335.1

 

Other

 

 

69.0

 

 

 

66.8

 

 

 

64.7

 

Total Deferred Credits and Other Liabilities

 

 

1,392.2

 

 

 

1,358.5

 

 

 

1,374.1

 

Commitments and Contingencies (Note 11)

 

 

 

 

 

 

 

 

 

 

 

 

Total Capitalization and Liabilities

 

$

7,232.2

 

 

$

6,843.6

 

 

$

6,701.1

 

See the accompanying Notes to Financial Statements.

7


 

SPIRE INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(UNAUDITED)

 

 

 

Common Stock

Outstanding

 

 

Paid-in

 

 

Retained

 

 

 

 

 

 

 

 

 

(Dollars in millions)

 

Shares

 

 

Par

 

 

Capital

 

 

Earnings

 

 

AOCI*

 

 

Total

 

Balance at September 30, 2017

 

 

48,263,243

 

 

$

48.3

 

 

$

1,325.6

 

 

$

614.2

 

 

$

3.2

 

 

$

1,991.3

 

Net income

 

 

 

 

 

 

 

 

 

 

 

116.0

 

 

 

 

 

 

116.0

 

Dividend reinvestment plan

 

 

4,618

 

 

 

 

 

 

0.3

 

 

 

 

 

 

 

 

 

0.3

 

Stock-based compensation costs

 

 

 

 

 

 

 

 

1.9

 

 

 

 

 

 

 

 

 

1.9

 

Stock issued under stock-based compensation

   plans

 

 

105,434

 

 

 

0.1

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

Employees’ tax withholding for stock-based

   compensation

 

 

(33,581

)

 

 

(0.1

)

 

 

(2.8

)

 

 

 

 

 

 

 

 

(2.9

)

Dividends declared ($0.5625 per share)

 

 

 

 

 

 

 

 

 

 

 

(27.2

)

 

 

 

 

 

(27.2

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.2

)

 

 

(0.2

)

Balance at December 31, 2017

 

 

48,339,714

 

 

$

48.3

 

 

$

1,324.9

 

 

$

703.0

 

 

$

3.0

 

 

$

2,079.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2018

 

 

50,671,903

 

 

$

50.7

 

 

$

1,482.7

 

 

$

715.6

 

 

$

6.4

 

 

$

2,255.4

 

Net income

 

 

 

 

 

 

 

 

 

 

 

67.3

 

 

 

 

 

 

67.3

 

Dividend reinvestment plan

 

 

5,063

 

 

 

 

 

 

0.4

 

 

 

 

 

 

 

 

 

0.4

 

Stock-based compensation costs

 

 

 

 

 

 

 

 

2.0

 

 

 

 

 

 

 

 

 

2.0

 

Stock issued under stock-based compensation

   plans

 

 

74,835

 

 

 

0.1

 

 

 

(0.1

)

 

 

 

 

 

 

 

 

 

Employees’ tax withholding for stock-based

   compensation

 

 

(27,633

)

 

 

(0.1

)

 

 

(2.2

)

 

 

 

 

 

 

 

 

(2.3

)

Dividends declared ($0.5925 per share)

 

 

 

 

 

 

 

 

 

 

 

(30.0

)

 

 

 

 

 

(30.0

)

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8.2

)

 

 

(8.2

)

Balance at December 31, 2018

 

 

50,724,168

 

 

$

50.7

 

 

$

1,482.8

 

 

$

752.9

 

 

$

(1.8

)

 

$

2,284.6

 

 

* Accumulated other comprehensive income (loss)

See the accompanying Notes to Financial Statements.

8


 

SPIRE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

Three Months Ended

December 31,

 

(In millions)

 

2018

 

 

2017

 

Operating Activities:

 

 

 

 

 

 

 

 

Net Income

 

$

67.3

 

 

$

116.0

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

44.2

 

 

 

40.4

 

Deferred income taxes and investment tax credits

 

 

12.7

 

 

 

(33.6

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(260.5

)

 

 

(176.7

)

Inventories

 

 

(2.5

)

 

 

20.9

 

Unamortized purchased gas adjustments

 

 

20.5

 

 

 

34.6

 

Accounts payable

 

 

158.0

 

 

 

(2.1

)

Delayed/advance customer billings, net

 

 

(6.9

)

 

 

(8.7

)

Taxes accrued

 

 

(19.1

)

 

 

(25.0

)

Other assets and liabilities

 

 

57.1

 

 

 

50.3

 

Other

 

 

(0.4

)

 

 

1.8

 

Net cash provided by operating activities

 

 

70.4

 

 

 

17.9

 

Investing Activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(206.8

)

 

 

(110.8

)

Business acquisitions

 

 

(7.9

)

 

 

(16.0

)

Other

 

 

(1.5

)

 

 

0.1

 

Net cash used in investing activities

 

 

(216.2

)

 

 

(126.7

)

Financing Activities:

 

 

 

 

 

 

 

 

Issuance of long-term debt

 

 

100.0

 

 

 

30.0

 

Repayment of long-term debt

 

 

(9.1

)

 

 

 

Issuance of short-term debt, net

 

 

72.5

 

 

 

106.3

 

Issuance of common stock

 

 

0.4

 

 

 

0.3

 

Dividends paid

 

 

(28.8

)

 

 

(25.8

)

Other

 

 

(2.2

)

 

 

(2.7

)

Net cash provided by financing activities

 

 

132.8

 

 

 

108.1

 

Net Decrease in Cash, Cash Equivalents, and Restricted Cash

 

 

(13.0

)

 

 

(0.7

)

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period

 

 

21.4

 

 

 

7.4

 

Cash and Cash Equivalents at End of Period

 

$

8.4

 

 

$

6.7

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash paid for:

 

 

 

 

 

 

 

 

Interest, net of amounts capitalized

 

$

(13.9

)

 

$

(13.3

)

Income taxes

 

 

 

 

 

 

 

See the accompanying Notes to Financial Statements.

9


 

SPIRE MISSOURI INC.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

 

 

Three Months Ended

December 31,

 

(In millions)

 

2018

 

 

2017

 

Operating Revenues:

 

 

 

 

 

 

 

 

Utility

 

$

413.2

 

 

$

392.3

 

Total Operating Revenues

 

 

413.2

 

 

 

392.3

 

Operating Expenses:

 

 

 

 

 

 

 

 

Utility

 

 

 

 

 

 

 

 

Natural and propane gas

 

 

223.4

 

 

 

206.2

 

Operation and maintenance

 

 

63.1

 

 

 

60.1

 

Depreciation and amortization

 

 

27.2

 

 

 

24.8

 

Taxes, other than income taxes

 

 

28.1

 

 

 

26.2

 

Total Operating Expenses

 

 

341.8

 

 

 

317.3

 

Operating Income

 

 

71.4

 

 

 

75.0

 

Other (Expense) Income, Net

 

 

(0.7

)

 

 

1.0

 

Interest Charges:

 

 

 

 

 

 

 

 

Interest on long-term debt

 

 

9.4

 

 

 

9.9

 

Other interest charges