Hawaiian Electric Industries Inc. (NYSE:HE) Q4 2017 Earnings Conference Call - Final Transcript
Feb 14, 2018 • 04:00 pm ET
Hello, everyone and welcome to the Hawaiian Electric Industries Fourth Quarter 2017 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Cliff Chen, Treasurer and Manager, Investor Relations. Please go ahead.
Thank you and welcome to HEI's 2017 fourth quarter and year-end earnings conference call. Joining me this morning are Connie Lau, HEI President and Chief Executive Officer and Chairman of the Boards of Hawaiian Electric Company and American Savings Bank; Greg Hazelton, HEI Executive Vice President and Chief Financial Officer; Alan Oshima, Hawaiian Electric Company President and Chief Executive Officer; and Rich Wacker, American Savings Bank President and Chief Executive Officer, as well as other members of senior management.
Connie will provide an overview, followed by Greg who will update you on Hawaii's economy, our results for the fourth quarter and year-end 2017 and our 2018 earnings guidance. Then, we will conclude with questions and answers. In today's presentation, management will be using non-GAAP financial measures to describe the Company's operating performance. Our press release and webcast presentation materials, which are posted on HEI's Investor Relations website, contain additional disclosures regarding these non-GAAP measures, including reconciliations to the equivalent GAAP measures.
Forward-looking statements will also be made on today's call. Actual results could differ materially from what is described in those statements. Please refer to the cautionary note regarding the forward-looking statements disclosure accompanying the webcast slides, which provides additional information on important factors that could cause results to differ. The Company undertakes no obligation to publicly update or revise any forward-looking statements, including without limitation EPS guidance, whether as a result of new information, future events or otherwise.
I will now ask our CEO, Connie Lau, to begin with an overview.
Thank you, Cliff and aloha to everyone. Hawaii's economy had a very strong year in 2017 and I am proud to say that our utility performed within guidance and our bank produced stronger than expected results. As with other companies, we were subject to some one-time impacts from the tax reform act in 2017, a net negative $14.2 million, which Greg will explain. Moving forward however, our bank subsidiary like other banks, will benefit from lower tax rates and that will have a net positive impact on the consolidated enterprise. Customers at our utility will also benefit as our utility is working with the Public Utilities Commission to return the net benefits of tax reform to utility customers.
Looking at Company developments. 2017 was a productive year. We had rate cases underway at all three utilities. And together with our Public Utilities Commission and other stakeholders, we continue to lay the foundation to meet Hawaii's 100% renewable goal by 2045.
In 2017, we also started construction on our bank's new Honolulu campus and look forward to its completion later this year. It will bring together approximately 600 teammates at one of the most innovative, collaborative and modern