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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 23, 2001
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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
State of Hawaii
(State or other jurisdiction of incorporation)
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900 Richards Street, Honolulu, Hawaii 96813
(Address of principal executive offices and zip code)
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Registrant's telephone number, including area code:
(808) 543-5662--Hawaiian Electric Industries, Inc. (HEI)
(808) 543-7771--Hawaiian Electric Company, Inc. (HECO)
----------------
None
(Former name or former address, if changed since last report.)
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Item 5. Other Events
News release
On April 23, 2001, HEI issued the following news release:
HAWAIIAN ELECTRIC INDUSTRIES, INC. REPORTS FIRST QUARTER 2001 EARNINGS
HONOLULU--Hawaiian Electric Industries, Inc. (NYSE--HE) today reported net
income for the three months ended March 31, 2001 of $27.7 million, or 84 cents
per share, compared with $29.0 million, or 90 cents per share, in the same
quarter of 2000.
"The company had a mixed first quarter, with earnings down 4.2%. Despite a
1.7% increase in kilowatthour sales, utility net income was down 9.7% as
purchased power and other operation and maintenance expenses at the utility
increased," said Robert F. Clarke, HEI chairman, president and chief executive
officer. "However, our savings bank had a good quarter with net income up
5.8%, mainly due to higher interest and fee income," said Clarke.
Electric utility net income in the first quarter was $21.4 million versus
$23.7 million in the same period last year. Higher kilowatthour sales were
largely a result of warmer weather. "However, purchased power and maintenance
expenses were higher in the first quarter of 2001 as compared with the same
period in 2000 due to the timing of overhauls by both the company and its
major independent power supplier on Oahu," said Clarke.
Savings bank net income in the first quarter was $11.9 million compared to
$11.2 million in the same period last year. Interest income increased 5.0% due
to an increase in interest earning assets of 1.9%. However, the bank's
interest rate spread--the difference between the yield on earning assets and
cost of funds--was lower at 3.01% in the recent quarter versus 3.28% for the
same period in 2000.
International power results were relatively flat for the quarter, excluding
a gain from a $1.5 million partial release of a loan guarantee that was
previously recorded. A $0.6 million tax benefit related to this reversal is
included in the other segment results.
HEI will hold its annual meeting tomorrow at 9:30 a.m. in Honolulu, Hawaii
to elect five directors and an independent auditor.
HEI is a diversified holding company. Its core businesses are electric
utilities, a savings bank and an international power subsidiary.
1
FORWARD-LOOKING STATEMENTS
This release may contain "forward-looking statements," that are subject to risks
and uncertainties. Forward looking statements are statements that are predictive
in nature, depend upon or refer to future events or conditions, and/or include
words such as "expects", "anticipates", "intends", "plans", "believes",
"estimates" or similar expressions. Forward-looking statements in this release
should be read in conjunction with "Forward-looking statements" set forth on
page vi of HEI's Form 10-K for the year ended December 31, 2000 (incorporated by
reference herein) that discusses important factors that could cause HEI's
results to differ materially from those anticipated in such statements. Forward-
looking statements speak only as of the date of this release.
2
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Quarters ended Twelve months ended
March 31, March 31,
------------------ ----------------------
2001 2000 2001 2000
-------- -------- ---------- ----------
(in thousands, except per share
amounts)
Revenues
Electric utility.................. $318,423 $289,405 $1,306,188 $1,106,818
Savings bank...................... 115,754 110,267 456,369 419,900
International power............... 1,969 1,665 (11,726) 5,137
Other............................. (1,279) 538 1,185 41,063
-------- -------- ---------- ----------
434,867 401,875 1,752,016 1,572,918
-------- -------- ---------- ----------
Expenses
Electric utility.................. 270,413 237,775 1,116,717 921,375
Savings bank...................... 95,605 91,077 385,369 355,489
International power............... 773 2,115 87,698 9,702
Other............................. 2,359 2,706 9,370 38,311
-------- -------- ---------- ----------
369,150 333,673 1,599,154 1,324,877
-------- -------- ---------- ----------
Operating income (loss)
Electric utility.................. 48,010 51,630 189,471 185,443
Savings bank...................... 20,149 19,190 71,000 64,411
International power............... 1,196 (450) (99,424) (4,565)
Other............................. (3,638) (2,168) (8,185) 2,752
-------- -------- ---------- ----------
65,717 68,202 152,862 248,041
-------- -------- ---------- ----------
Interest expense--other than sav-
ings bank........................ (20,005) (19,072) (79,554) (73,815)
Allowance for borrowed funds used
during construction.............. 676 691 2,907 2,627
Preferred stock dividends of sub-
sidiaries........................ (502) (498) (2,011) (2,006)
Preferred securities distributions
of trust subsidiaries............ (4,009) (4,009) (16,035) (16,035)
Allowance for equity funds used
during construction.............. 1,265 1,269 5,376 4,458
-------- -------- ---------- ----------
Income from continuing operations
before income taxes.............. 43,142 46,583 63,545 163,270
Income taxes...................... 15,397 17,607 19,032 62,154
-------- -------- ---------- ----------
Income from continuing opera-
tions............................ 27,745 28,976 44,513 101,116
Discontinued operations-gain on
disposal......................... -- -- -- 3,953
-------- -------- ---------- ----------
Net income................... $ 27,745 $ 28,976 $ 44,513 $ 105,069
======== ======== ========== ==========
Per common share
Basic earnings
Continuing operations.......... $ 0.84 $ 0.90 $ 1.36 $ 3.14
Discontinued operations........ -- -- -- 0.12
-------- -------- ---------- ----------
$ 0.84 $ 0.90 $ 1.36 $ 3.26
======== ======== ========== ==========
Diluted earnings
Continuing operations.......... $ 0.83 $ 0.90 $ 1.35 $ 3.13
Discontinued operations........ -- -- -- 0.12
-------- -------- ---------- ----------
$ 0.83 $ 0.90 $ 1.35 $ 3.25
======== ======== ========== ==========
Dividends........................ $ 0.62 $ 0.62 $ 2.48 $ 2.48
======== ======== ========== ==========
Weighted average number of common
shares outstanding............... 33,159 32,266 32,766 32,216
======== ======== ========== ==========
Adjusted weighted average shares.. 33,312 32,372 32,904 32,323
======== ======== ========== ==========
Income from continuing operations
by segment
Electric utility................. $ 21,425 $ 23,725 $ 84,986 $ 81,866
Savings bank..................... 11,875 11,221 41,284 38,108
International power.............. 434 (921) (102,231) (5,221)
Other............................ (5,989) (5,049) 20,474 (13,637)
-------- -------- ---------- ----------
Income from continuing opera-
tions............................ $ 27,745 $ 28,976 $ 44,513 $ 101,116
======== ======== ========== ==========
This information should be read in conjunction with the consolidated
financial statements and the notes thereto incorporated by reference in HEI's
Annual Report on SEC Form 10-K for the year ended December 31, 2000 and the
consolidated financial statements and the notes thereto in HEI's Quarterly
Report on SEC Form 10-Q for the quarter ended March 31, 2001 (when filed).
Results of operations for interim periods are not necessarily indicative of
results to be expected for future interim periods or the full year.
Net income for the quarter and the twelve months ended March 31, 2000 does
not include equity in net losses of EPHE Philippines Energy Company, Inc.
(EPHE, owner of approximately 91.7% of the common shares of East Asia Power
Resources Corporation). An indirect subsidiary of HEI Power Corp. (HEIPC)
acquired a 50% interest in EPHE on March 7, 2000. The accounts of HEIPC and
subsidiaries are consolidated on a one month lag due to the time needed to
consolidate the subsidiaries.
3
HAWAIIAN ELECTRIC INDUSTRIES, INC.
SUPPLEMENTAL DATA TO 1ST QUARTER 2001 EARNING RELEASE
(Unaudited)
Hawaiian Electric Company, Inc. (HECO) and subsidiaries Three months
Consolidated Statements of Income ended March 31,
------------------------------------------------------- ------------------
2001 2000
-------- --------
(in thousands)
Operating revenues............................................ $317,293 $288,421
-------- --------
Operating expenses
Fuel oil.................................................... 88,245 75,155
Purchased power............................................. 81,916 70,226
Other operation............................................. 29,774 27,741
Maintenance................................................. 15,197 12,533
Depreciation................................................ 24,609 24,334
Taxes, other than income taxes.............................. 30,491 27,361
Income taxes................................................ 13,604 15,193
-------- --------
283,836 252,543
-------- --------
Operating income.............................................. 33,457 35,878
-------- --------
Other income
Allowance for equity funds used during construction......... 1,265 1,269
Other, net.................................................. 977 575
-------- --------
2,242 1,844
-------- --------
Income before interest and other charges...................... 35,699 37,722
-------- --------
Interest and other charges
Interest on long-term debt.................................. 9,929 9,932
Amortization of net bond premium and expense................ 530 442
Other interest charges...................................... 2,073 1,897
Allowance for borrowed funds used during construction....... (676) (691)
Preferred stock dividends of subsidiaries................... 229 228
Preferred securities distributions of trust subsidiaries.... 1,919 1,919
-------- --------
14,004 13,727
-------- --------
Income before preferred stock dividends of HECO............... 21,695 23,995
Preferred stock dividends of HECO............................. 270 270
-------- --------
Net income for common stock................................... $ 21,425 $ 23,725
======== ========
Other electric utility information
Kilowatthour sales (millions)................................. 2,241 2,203
Cooling degree days (Oahu).................................... 910 828
4
American Savings Bank, F.S.B. and subsidiaries Three months
Consolidated Income statement data ended March 31,
----------------------------------------------------------- ------------------
2001 2000
-------- --------
Interest income............................................... $107,601 $102,508
Interest expense.............................................. 60,500 55,718
-------- --------
Net interest income....................................... 47,101 46,790
Provision for loan losses..................................... (3,000) (3,000)
Other income.................................................. 8,153 7,759
Operating, administrative and general expenses................ (32,105) (32,359)
-------- --------
Operating income.......................................... 20,149 19,190
Minority interest............................................. 59 57
Income taxes.................................................. 6,862 6,562
-------- --------
Income before preferred stock dividends....................... 13,228 12,571
Preferred stock dividends..................................... 1,353 1,350
-------- --------
Net income................................................ $ 11,875 $ 11,221
======== ========
(End of news release)
5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized. The signature of the undersigned
companies shall be deemed to relate only to matters having reference to such
companies and any subsidiaries thereof.
HAWAIIAN ELECTRIC INDUSTRIES, INC. HAWAIIAN ELECTRIC COMPANY, INC.
(Registrant) (Registrant)
/s/ Robert F. Mougeot /s/ Richard A. von Gnechten
__________________________ __________________________
Robert F. Mougeot Richard A. von Gnechten
Financial Vice President, Treasurer Financial Vice President
and Chief Financial Officer (Principal Financial Officer of
(Principal Financial Officer of HEI) HECO)
Date: April 23, 2001 Date: April 23, 2001
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