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$TE 1Q15 10-Q: Effective tax rate increased approx. 1% to 38.48% vs. 37.55% in 1Q14. At March 31, 2015, total long-term debt had a carrying amount of $3,627.7MM and an estimated fair market value of $4,035.8MM. At Dec. 31, 2014, total long-term debt had a carrying amount of $3,628.5MM and an estimated fair market value of $3,987.8MM.
$TE said Rob Bennett will serve as its COO. Bennett is president and CEO of Emera U.S., the holding company for Emera's U.S. assets. Sarah MacDonald, who now leads Emera's Caribbean operations, has been appointed as new president of TECO Services, effective Sept. 1. Gordon Gillette will continue as president of Tampa Electric and TECO Peoples Gas.
$TE said that its President & CEO John Ramil stated his intention to retire on Aug. 31, 2016 after the closing of the purchase of the company by Emera, Inc. Emera announced that Ramil will serve on its BoD upon his retirement. After the deal closes on or about July 1, the subsidiaries that currently report to Ramil will report to separate boards.
$TE said its BoD declared a dividend of $0.002527 per share per day that will accrue from May 16, until and including day prior to effective merger day or until next scheduled record date of Aug. 15, whichever occurs first. In event closing has not occurred on or before Aug. 15, dividend will be paid on Aug. 26 to holders of record on Aug. 15.
Energy company $TE, along with Emera Inc., said the New Mexico Public Regulation Commission has approved Emera's proposed acquisition of $TE and the indirect acquisition of New Mexico Gas Company Inc. The filing of the NMPRC's written order will complete the final required regulatory approval. The deal is expected to close on or about July 1, 2016.
$TE's net cash provided by operating activities for 1Q16 increased to $231.6MM from $147MM in the previous year quarter, and net cash used in investing activities rose to $168.2MM from $156.4MM last year. Net cash used in financing activities was $41.1MM compared to cash provided by financing activities of $16.8MM a year ago.
$TE's New Mexico Gas Co. reported net income of $15.2MM for 1Q16, up from $13.9MM last year. Results reflected the benefit of heating degree days that were almost 3% higher than 2015, but nearly 7% below normal. Growth in the average number of customers in 1Q16 was 0.6%.
$TE's Tampa Electric Natural Gas Division reported net income of $13.1MM for 1Q16, down from $14.6MM last year. Results reflected non-fuel operations and maintenance expense $1MM higher than in 2015, driven by higher operating and compliance costs, partially offset by lower employee-related costs.
During 1Q16, $TE's Tampa Electric division reported a rise in its net income to $50.2MM vs. $48.2MM during 1Q15. This increase reflects a 1.7% higher average number of customers, and higher energy sales primarily due to the higher number of customers. Revenue dropped to $424.5MM during the quarter.
Energy company $TE reported a rise in its 1Q16 earnings, helped by $5.8MM tax benefit. $TE said its net income during the quarter increased to $73.8MM, or $0.31 per share compared to $58MM, or $0.25 per share during 1Q15. Revenue dropped 5% to $656.3MM. Excluding items, $TE earned $0.31 per share during 1Q15.
Emera and $TE said the New Mexico Public Regulation Commission Hearing Examiner has issued an order moving the hearing date for Emera's acquisition of $TE and the indirect acquisition of New Mexico Gas Co. from May 23, 2016 to May 2, 2016. The TECO Energy acquisition remains on track to close in mid-2016.
Energy companies $TE and $EMA said that the New Mexico Public Regulation Commission (NMPRC) hearing examiner has issued an order moving the hearing date for $EMA's acquisition of $TE and the indirect acquisition of New Mexico Gas Co. from May 23, 2016 to May 2, 2016. The $TE acquisition is expected to close in mid-2016.
In 2015, $TE's consolidated cash flow from operations was $610MM. Investing activities in 2015 resulted in a net use of cash of $740MM, which reflects capital expenditures. Financing activities in 2015 resulted in net cash generation of $129MM. At Dec. 31, 2015, the company's consolidated liquidity was $675MM.
In 2015, $TE's net income was $173.5MM or $0.74 per share. In 2015, net income from continuing operations was $241.2MM or $1.03 per share. The $67.7MM loss from discontinued operations in 2015 includes the operating results from TECO Coal, impairment charges totaling $50.8MM and the $7.7MM charge related to black lung liabilities.
On Sept. 21, 2015, $TE entered into an agreement and completed the sale of all of its ownership interest in TECO Coal to Cambrian. TECO Coal, formerly a wholly owned subsidiary of $TE, had subsidiaries operating surface and underground mines as well as coal processing facilities in eastern Kentucky, Tennessee and southwestern Virginia.