Hawaiian Electric Industries Inc. (NYSE:HE) Q3 2019 Earnings Conference Call Transcript

Nov 01, 2019 • 04:15 pm ET

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Hawaiian Electric Industries Inc. (NYSE:HE) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day everyone, and welcome to the Q3 2019 Hawaiian Electric Industries Inc. Earnings Conference Call. [Operator Instructions] Please note that today's event is being recorded.

At this time, I'd like to turn the conference call over to Julie Smolinski, Director of Investor Relations and Strategic Planning. Please go ahead.

Executive
Julie R. Smolinski

Thank you, Jamie, and welcome everyone to Hawaiian Electric Industries third quarter 2019 earnings conference call. Joining me today are Connie Lau, HEI President and Chief Executive Officer; Greg Hazelton, HEI Executive Vice President, Chief Financial Officer and Treasurer; 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 third quarter and our outlook for the remainder of the year. Then we'll conclude with questions-and-answers.

During today's call, we'll 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'll now ask our CEO, Connie Lau to begin with an overview.

Executive
Constance H. Lau

Thanks, Julie, and hello to everyone. In the third quarter, we continued to execute well on key initiatives across our enterprise, and our subsidiaries delivered solid results. Consolidated net income was $63.4 million and EPS was $0.58 compared to $66 million and $0.60 in the same quarter last year. Excluding a one-time tax adjustment at our utility in the third quarter of 2018, our third quarter 2019 results would have been about 4% higher than the prior year quarter. Overall, we continue to track in line with our 2019 plan. We're reaffirming our consolidated earnings guidance range for the year with some updates to underlying drivers that Greg will address shortly.

In our utility, we continue to work together with our communities and stakeholders to find the best ways to achieve a clean energy future that's affordable, resilient and reliable. As we've often said, this will take our whole community. It's what we call in Hawaii [Foreign Speech]. Community acceptance, the ability of the competitive market to propose cost effective projects, land availability and customer participation are all key to how fast we can move forward as a state. Our utility team has worked hard to ensure that for our part, we can fully support the integration of renewable projects, distributed energy resources, electrification of transportation and more to reach our state's aggressive clean energy goals.

We're on track for our next renewable portfolio milestone of 30% by 2020 and our record Stage 2 renewable storage and grid services procurement launched earlier this year, will help us make further strides. Request