Integrys Energy Group, Inc.
) reported fourth-quarter 2013 pro forma earnings of 99 cents per
share, beating the Zacks Consensus Estimate of 95 cents by 4.2%.
Quarterly earnings also escalated 11.2% from the year-ago figure
due to growth at the utility business.
GAAP earnings were $1.63 per share in the reported quarter
compared with 86 cents per share in the fourth quarter of 2012.
The difference between quarterly GAAP and pro forma earnings was
due to a 64 cent per share gain from derivative and inventory
Integrys Energy's earnings of $3.53 per share in 2013 were
marginally above the Zacks Consensus Estimate of $3.50 and up
8.3% year over year. The upswing was primarily due to increased
rate at The Peoples Gas Light and Coke Company.
Integrys Energy's total revenue for the fourth quarter surged
42.9% year over year to $1.7 billion. Reported revenues also
surpassed the Zacks Consensus Estimate by 31.5%. The revenue
upturn reflects favorable returns from the company's regulated as
well as non-regulated business divisions.
Revenues of $5.6 billion in 2013 also surpassed the Zacks
Consensus Estimate by 9.7% and increased by a good leap of 33.8%
year over year.
Total retail throughput volumes from the regulated segment
improved to 760.0 therms from 614.6 therms in the year-ago
quarter. Retail electric sales volumes decreased to 3,924.9
Kilowatt-hours ("Kwh") from 3,943.2 Kwh in the prior-year period.
The decline was caused by lower sales in wholesale segment.
Cost continued to increase in the fourth quarter with operating
expenses rising nearly 40.0% year over year to $1.4 billion. All
the components of operating expenses rose with major expenses
arising from non-regulates sales and purchase of fuel, natural
gas and power.
Interest expense increased to $37.2 million during the quarter
from $30.2 million in the year-ago period due to rising debt
Integrys Energy's cash and cash equivalents were $22.3 million as
of Dec 31, 2013, compared with $27.4 million as of Dec 31, 2012.
As of Dec 31, 2013, long-term debt was nearly $3.0 billion
compared with $1.9 billion as of Dec 31, 2012.
Net cash generated from operating activities during the year was
$555.0 million compared with $569.0 million in 2012.
Capital expenditure in 2013 was $669.2 million versus $594.3
million 2012. Higher capital expenditure during the year led to a
negative free cash flow of $114.2 million.
Guidance for 2014
Integrys Energy's adjusted earnings expectation for 2014 lies in
the band of $3.50-$3.75 per share. The company provided a GAAP
earnings guidance for 2014 in the range of $4.10-$4.35 per share.
TECO Energy Inc.
) announced fourth-quarter 2013 operating earnings of 21 cents
per share, in line with the Zacks Consensus Estimate.
American Electric Power Co., Inc.
) posted fourth-quarter 2013 earnings from continuing operations
of 19 cents per share, beating the Zacks Consensus Estimate by
DTE Energy Company
) reported fourth-quarter 2013 operating earnings per share of
$1.01, beating the Zacks Consensus Estimate by 4.1%.
Integrys Energy currently holds a Zacks Rank #2 (Buy).
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INTEGRYS ENERGY (TEG): Free Stock Analysis
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