Integrys Energy Group, Inc. (TEG) reported fourth-quarter 2013 pro forma earnings of 99 cents per share, beating the Zacks Consensus Estimate of 95 cents by 4.2%. Quarterly earnings also escalated 11.2% from the year-ago figure due to growth at the utility business.
GAAP earnings were $1.63 per share in the reported quarter compared with 86 cents per share in the fourth quarter of 2012. The difference between quarterly GAAP and pro forma earnings was due to a 64 cent per share gain from derivative and inventory accounting activities.
Integrys Energy’s earnings of $3.53 per share in 2013 were marginally above the Zacks Consensus Estimate of $3.50 and up 8.3% year over year. The upswing was primarily due to increased rate at The Peoples Gas Light and Coke Company.
Integrys Energy's total revenue for the fourth quarter surged 42.9% year over year to $1.7 billion. Reported revenues also surpassed the Zacks Consensus Estimate by 31.5%. The revenue upturn reflects favorable returns from the company’s regulated as well as non-regulated business divisions.
Revenues of $5.6 billion in 2013 also surpassed the Zacks Consensus Estimate by 9.7% and increased by a good leap of 33.8% year over year.
Total retail throughput volumes from the regulated segment improved to 760.0 therms from 614.6 therms in the year-ago quarter. Retail electric sales volumes decreased to 3,924.9 Kilowatt-hours (“Kwh”) from 3,943.2 Kwh in the prior-year period. The decline was caused by lower sales in wholesale segment.
Cost continued to increase in the fourth quarter with operating expenses rising nearly 40.0% year over year to $1.4 billion. All the components of operating expenses rose with major expenses arising from non-regulates sales and purchase of fuel, natural gas and power.
Interest expense increased to $37.2 million during the quarter from $30.2 million in the year-ago period due to rising debt levels.
Integrys Energy’s cash and cash equivalents were $22.3 million as of Dec 31, 2013, compared with $27.4 million as of Dec 31, 2012. As of Dec 31, 2013, long-term debt was nearly $3.0 billion compared with $1.9 billion as of Dec 31, 2012.
Net cash generated from operating activities during the year was $555.0 million compared with $569.0 million in 2012.
Capital expenditure in 2013 was $669.2 million versus $594.3 million 2012. Higher capital expenditure during the year led to a negative free cash flow of $114.2 million.
Guidance for 2014
Integrys Energy’s adjusted earnings expectation for 2014 lies in the band of $3.50–$3.75 per share. The company provided a GAAP earnings guidance for 2014 in the range of $4.10–$4.35 per share.
TECO Energy Inc. (TE) announced fourth-quarter 2013 operating earnings of 21 cents per share, in line with the Zacks Consensus Estimate.
American Electric Power Co., Inc. (AEP) posted fourth-quarter 2013 earnings from continuing operations of 19 cents per share, beating the Zacks Consensus Estimate by 58.3%.
DTE Energy Company (DTE) reported fourth-quarter 2013 operating earnings per share of $1.01, beating the Zacks Consensus Estimate by 4.1%.
Integrys Energy currently holds a Zacks Rank #2 (Buy).
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