Hawaiian Electric Industries Inc. (NYSE:HE) Q2 2018 Earnings Conference Call - Final Transcript

Aug 03, 2018 • 04:00 pm ET


Hawaiian Electric Industries Inc. (NYSE:HE) Q2 2018 Earnings Conference Call - Final Transcript


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Good day and welcome to the Quarter Two 2018 Hawaiian Electric Industries Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

And I would now like to turn the conference over to Julie Smolinski, Manager of Investor Relations. Please go ahead.

Julie Smolinski

Thank you and welcome to Hawaiian Electric Industries second quarter 2018 earnings conference call. Joining me today 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 second quarter and our outlook for the remainder of the year. Then, we will conclude with questions and answers. During today's call, we will be using non-GAAP financial measures to describe our operating performance. Our press release and webcast presentation are posted on HEI's Investor Relations website and contain reconciliations of these measures to the equivalent GAAP measures.

Forward-looking statements will also be made on today's call. Factors that could cause actual results to differ materially from expectations can be found in our webcast slides, our filings with the SEC and on the HEI website.

I will now ask our CEO, Connie Lau to begin with an overview.

Connie Lau

Thanks, Julie and aloha to everyone. In the second quarter, we continued to make significant progress on our strategies across the enterprise and delivered solid results in line with our full year expectation with consolidated net income of $46 million and consolidated earnings per share of $0.42. Our utilities made major strides on their strategies in the quarter, paving the way for more renewable and more choices for customers, while enhancing system resilience and reliability.

Regulatory progress continued at a rapid pace with our Commission issuing several key decisions that helped keep the momentum toward achieving our state's renewable goals. American continues to perform well, achieving its second consecutive quarter of record net income, as it remains focused on making banking easier for customers and deepening relationships with them. We are reaffirming our 2018 earnings guidance and Greg will go over that in more detail later.

At our utilities, key milestones were reached in our transition back to the triennial rate case cycle with final commission visions in June in our Hawaiian Electric Oahu 2017 test year rate case and our Hawaii Electric Light 2016 test year rate case and the filing of a settlement for our Maui Electric 2018 test year rate case. An interim decision for Maui is expected this month. As part of state policy to reduce fossil fuels and increase renewable energy, the Hawaiian Electric rate case decision