Exact Name of Registrant as
Specified in Its Charter |
Commission File Number |
I.R.S. Employer Identification
No. | ||
Hawaiian Electric Industries, Inc. |
1-8503 |
99-0208097 | ||
Hawaiian Electric Company, Inc. |
1-4955 |
99-0040500 |
Three months ended September 30, |
Nine months ended September 30, |
Twelve months ended September 30, |
||||||||||||||||||||||
2002 |
2001 |
2002 |
2001 |
2002 |
2001 |
|||||||||||||||||||
(in thousands, except per share amounts) |
||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||
Electric utility |
$ |
333,636 |
|
$ |
341,386 |
|
$ |
919,643 |
|
$ |
973,460 |
|
$ |
1,235,487 |
|
$ |
1,316,056 |
| ||||||
Bank |
|
99,722 |
|
|
108,034 |
|
|
300,633 |
|
|
336,038 |
|
|
409,197 |
|
|
453,654 |
| ||||||
Other |
|
(1,798 |
) |
|
(2,128 |
) |
|
(2,278 |
) |
|
(1,530 |
) |
|
(7,377 |
) |
|
851 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
431,560 |
|
|
447,292 |
|
|
1,217,998 |
|
|
1,307,968 |
|
|
1,637,307 |
|
|
1,770,561 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Expenses |
||||||||||||||||||||||||
Electric utility |
|
280,047 |
|
|
287,064 |
|
|
769,497 |
|
|
821,100 |
|
|
1,043,756 |
|
|
1,127,143 |
| ||||||
Bank |
|
75,156 |
|
|
88,546 |
|
|
229,527 |
|
|
278,829 |
|
|
313,201 |
|
|
378,888 |
| ||||||
Other |
|
4,650 |
|
|
2,631 |
|
|
13,913 |
|
|
9,354 |
|
|
17,801 |
|
|
12,502 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
359,853 |
|
|
378,241 |
|
|
1,012,937 |
|
|
1,109,283 |
|
|
1,374,758 |
|
|
1,518,533 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Operating income (loss) |
||||||||||||||||||||||||
Electric utility |
|
53,589 |
|
|
54,322 |
|
|
150,146 |
|
|
152,360 |
|
|
191,731 |
|
|
188,913 |
| ||||||
Bank |
|
24,566 |
|
|
19,488 |
|
|
71,106 |
|
|
57,209 |
|
|
95,996 |
|
|
74,766 |
| ||||||
Other |
|
(6,448 |
) |
|
(4,759 |
) |
|
(16,191 |
) |
|
(10,884 |
) |
|
(25,178 |
) |
|
(11,651 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
71,707 |
|
|
69,051 |
|
|
205,061 |
|
|
198,685 |
|
|
262,549 |
|
|
252,028 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest expenseother than bank |
|
(17,751 |
) |
|
(19,937 |
) |
|
(54,618 |
) |
|
(59,461 |
) |
|
(73,883 |
) |
|
(79,172 |
) | ||||||
Allowance for borrowed funds used during construction |
|
549 |
|
|
524 |
|
|
1,392 |
|
|
1,711 |
|
|
1,939 |
|
|
2,413 |
| ||||||
Preferred stock dividends of subsidiaries |
|
(501 |
) |
|
(501 |
) |
|
(1,504 |
) |
|
(1,504 |
) |
|
(2,006 |
) |
|
(2,006 |
) | ||||||
Preferred securities distributions of trust subsidiaries |
|
(4,008 |
) |
|
(4,008 |
) |
|
(12,026 |
) |
|
(12,026 |
) |
|
(16,035 |
) |
|
(16,035 |
) | ||||||
Allowance for equity funds used during construction |
|
1,162 |
|
|
998 |
|
|
2,977 |
|
|
3,218 |
|
|
3,998 |
|
|
4,496 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income from continuing operations before income taxes |
|
51,158 |
|
|
46,127 |
|
|
141,282 |
|
|
130,623 |
|
|
176,562 |
|
|
161,724 |
| ||||||
Income taxes |
|
18,381 |
|
|
17,461 |
|
|
50,602 |
|
|
48,081 |
|
|
60,678 |
|
|
57,768 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income from continuing operations |
|
32,777 |
|
|
28,666 |
|
|
90,680 |
|
|
82,542 |
|
|
115,884 |
|
|
103,956 |
| ||||||
Discontinued operations, net of income taxes |
||||||||||||||||||||||||
Loss from operations |
|
|
|
|
(711 |
) |
|
|
|
|
(1,254 |
) |
|
|
|
|
(47,045 |
) | ||||||
Net loss on disposals |
|
|
|
|
(20,821 |
) |
|
|
|
|
(20,821 |
) |
|
(1,966 |
) |
|
(20,821 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Loss from discontinued operations |
|
|
|
|
(21,532 |
) |
|
|
|
|
(22,075 |
) |
|
(1,966 |
) |
|
(67,866 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net income |
$ |
32,777 |
|
$ |
7,134 |
|
$ |
90,680 |
|
$ |
60,467 |
|
$ |
113,918 |
|
$ |
36,090 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Per common share |
||||||||||||||||||||||||
Basic earnings (loss) |
||||||||||||||||||||||||
Continuing operations |
$ |
0.90 |
|
$ |
0.85 |
|
$ |
2.51 |
|
$ |
2.47 |
|
$ |
3.24 |
|
$ |
3.12 |
| ||||||
Discontinued operations |
|
|
|
|
(0.64 |
) |
|
|
|
|
(0.66 |
) |
|
(0.06 |
) |
|
(2.04 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
$ |
0.90 |
|
$ |
0.21 |
|
$ |
2.51 |
|
$ |
1.81 |
|
$ |
3.18 |
|
$ |
1.08 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Diluted earnings (loss) |
||||||||||||||||||||||||
Continuing operations |
$ |
0.89 |
|
$ |
0.84 |
|
$ |
2.49 |
|
$ |
2.46 |
|
$ |
3.22 |
|
$ |
3.11 |
| ||||||
Discontinued operations |
|
|
|
|
(0.63 |
) |
|
|
|
|
(0.66 |
) |
|
(0.05 |
) |
|
(2.03 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
$ |
0.89 |
|
$ |
0.21 |
|
$ |
2.49 |
|
$ |
1.80 |
|
$ |
3.17 |
|
$ |
1.08 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Dividends |
$ |
0.62 |
|
$ |
0.62 |
|
$ |
1.86 |
|
$ |
1.86 |
|
$ |
2.48 |
|
$ |
2.48 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Weighted-average number of common shares outstanding |
|
36,435 |
|
|
33,716 |
|
|
36,150 |
|
|
33,454 |
|
|
35,770 |
|
|
33,305 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjusted weighted-average shares |
|
36,627 |
|
|
33,925 |
|
|
36,350 |
|
|
33,634 |
|
|
35,957 |
|
|
33,471 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income (loss) from continuing operations by segment |
||||||||||||||||||||||||
Electric utility |
$ |
25,610 |
|
$ |
25,695 |
|
$ |
69,819 |
|
$ |
69,836 |
|
$ |
88,283 |
|
$ |
84,363 |
| ||||||
Bank |
|
14,652 |
|
|
11,072 |
|
|
42,815 |
|
|
33,154 |
|
|
58,192 |
|
|
43,352 |
| ||||||
Other |
|
(7,485 |
) |
|
(8,101 |
) |
|
(21,954 |
) |
|
(20,448 |
) |
|
(30,591 |
) |
|
(23,759 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income from continuing operations |
$ |
32,777 |
|
$ |
28,666 |
|
$ |
90,680 |
|
$ |
82,542 |
|
$ |
115,884 |
|
$ |
103,956 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September
30, |
Nine months ended September
30, |
Twelve months ended September
30, | ||||||||||||||||
2002 |
2001 |
2002 |
2001 |
2002 |
2001 | |||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||
Consolidated |
||||||||||||||||||
Reported net income |
$ |
32,777 |
$ |
7,134 |
$ |
90,680 |
$ |
60,467 |
$ |
113,918 |
$ |
36,090 | ||||||
Goodwill amortization, net of tax benefits |
|
|
|
961 |
|
|
|
2,877 |
|
968 |
|
3,831 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjusted net income |
$ |
32,777 |
$ |
8,095 |
$ |
90,680 |
$ |
63,344 |
$ |
114,886 |
$ |
39,921 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Per common share |
||||||||||||||||||
Reported basic earnings |
$ |
0.90 |
$ |
0.21 |
$ |
2.51 |
$ |
1.81 |
$ |
3.18 |
$ |
1.08 | ||||||
Goodwill amortization, net of tax benefits |
|
|
|
0.03 |
|
|
|
0.08 |
|
0.03 |
|
0.12 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjusted basic earnings |
$ |
0.90 |
$ |
0.24 |
$ |
2.51 |
$ |
1.89 |
$ |
3.21 |
$ |
1.20 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Per common share |
||||||||||||||||||
Reported diluted earnings |
$ |
0.89 |
$ |
0.21 |
$ |
2.49 |
$ |
1.80 |
$ |
3.17 |
$ |
1.08 | ||||||
Goodwill amortization, net of tax benefits |
|
|
|
0.03 |
|
|
|
0.08 |
|
0.03 |
|
0.11 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjusted diluted earnings |
$ |
0.89 |
$ |
0.24 |
$ |
2.49 |
$ |
1.88 |
$ |
3.20 |
$ |
1.19 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Bank |
||||||||||||||||||
Reported net income |
$ |
14,652 |
$ |
11,072 |
$ |
42,815 |
$ |
33,154 |
$ |
58,192 |
$ |
43,352 | ||||||
Goodwill amortization, net of tax benefits |
|
|
|
961 |
|
|
|
2,877 |
|
968 |
|
3,831 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Adjusted net income |
$ |
14,652 |
$ |
12,033 |
$ |
42,815 |
$ |
36,031 |
$ |
59,160 |
$ |
47,183 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September
30, |
Nine months ended September
30, |
|||||||||||||||
2002 |
2001 |
2002 |
2001 |
|||||||||||||
(in thousands) |
||||||||||||||||
Operating revenues |
$ |
332,453 |
|
$ |
340,231 |
|
$ |
916,402 |
|
$ |
969,979 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
||||||||||||||||
Fuel oil |
|
85,311 |
|
|
96,665 |
|
|
218,901 |
|
|
266,995 |
| ||||
Purchased power |
|
87,123 |
|
|
87,670 |
|
|
240,744 |
|
|
253,067 |
| ||||
Other operation |
|
33,888 |
|
|
30,729 |
|
|
95,573 |
|
|
90,599 |
| ||||
Maintenance |
|
15,705 |
|
|
14,540 |
|
|
45,727 |
|
|
42,752 |
| ||||
Depreciation |
|
26,340 |
|
|
25,363 |
|
|
79,063 |
|
|
75,335 |
| ||||
Taxes, other than income taxes |
|
31,287 |
|
|
31,494 |
|
|
88,769 |
|
|
91,411 |
| ||||
Income taxes |
|
16,287 |
|
|
16,244 |
|
|
44,110 |
|
|
44,210 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
295,941 |
|
|
302,705 |
|
|
812,887 |
|
|
864,369 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
|
36,512 |
|
|
37,526 |
|
|
103,515 |
|
|
105,610 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income |
||||||||||||||||
Allowance for equity funds used during construction |
|
1,162 |
|
|
998 |
|
|
2,977 |
|
|
3,218 |
| ||||
Other, net |
|
858 |
|
|
530 |
|
|
2,435 |
|
|
2,467 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
2,020 |
|
|
1,528 |
|
|
5,412 |
|
|
5,685 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income before interest and other charges |
|
38,532 |
|
|
39,054 |
|
|
108,927 |
|
|
111,295 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest and other charges |
||||||||||||||||
Interest on long-term debt |
|
10,127 |
|
|
10,126 |
|
|
30,430 |
|
|
30,127 |
| ||||
Amortization of net bond premium and expense |
|
498 |
|
|
509 |
|
|
1,505 |
|
|
1,546 |
| ||||
Other interest charges |
|
430 |
|
|
832 |
|
|
1,313 |
|
|
4,245 |
| ||||
Allowance for borrowed funds used during construction |
|
(549 |
) |
|
(524 |
) |
|
(1,392 |
) |
|
(1,711 |
) | ||||
Preferred stock dividends of subsidiaries |
|
228 |
|
|
228 |
|
|
686 |
|
|
686 |
| ||||
Preferred securities distributions of trust subsidiaries |
|
1,918 |
|
|
1,918 |
|
|
5,756 |
|
|
5,756 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
12,652 |
|
|
13,089 |
|
|
38,298 |
|
|
40,649 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income before preferred stock dividends of HECO |
|
25,880 |
|
|
25,965 |
|
|
70,629 |
|
|
70,646 |
| ||||
Preferred stock dividends of HECO |
|
270 |
|
|
270 |
|
|
810 |
|
|
810 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income for common stock |
$ |
25,610 |
|
$ |
25,695 |
|
$ |
69,819 |
|
$ |
69,836 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
OTHER ELECTRIC UTILITY INFORMATION |
||||||||||||||||
Kilowatthour sales (millions) |
|
2,515 |
|
|
2,471 |
|
|
7,117 |
|
|
7,010 |
| ||||
Cooling degree days (Oahu) |
|
1,539 |
|
|
1,578 |
|
|
3,611 |
|
|
3,711 |
|
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
2002 |
2001 |
2002 |
2001 |
|||||||||||||
(in thousands) |
||||||||||||||||
Interest and dividend income: |
||||||||||||||||
Interest and fees on loans |
$ |
50,210 |
|
$ |
53,760 |
|
$ |
152,300 |
|
$ |
178,665 |
| ||||
Interest on mortgage-related securities |
|
35,503 |
|
|
39,136 |
|
|
103,634 |
|
|
115,331 |
| ||||
Interest and dividends on investment securities |
|
1,880 |
|
|
4,071 |
|
|
5,979 |
|
|
13,163 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest and dividend income |
|
87,593 |
|
|
96,967 |
|
|
261,913 |
|
|
307,159 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest expense: |
||||||||||||||||
Interest on deposit liabilities |
|
17,833 |
|
|
29,015 |
|
|
57,331 |
|
|
92,241 |
| ||||
Interest on Federal Home Loan Bank advances |
|
14,905 |
|
|
16,540 |
|
|
43,327 |
|
|
54,267 |
| ||||
Interest on securities sold under repurchase agreements |
|
5,683 |
|
|
6,563 |
|
|
15,256 |
|
|
22,922 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest expense |
|
38,421 |
|
|
52,118 |
|
|
115,914 |
|
|
169,430 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income |
|
49,172 |
|
|
44,849 |
|
|
145,999 |
|
|
137,729 |
| ||||
Provision for loan losses |
|
1,500 |
|
|
3,000 |
|
|
8,000 |
|
|
9,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net interest income after provision for loan losses |
|
47,672 |
|
|
41,849 |
|
|
137,999 |
|
|
128,729 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income: |
||||||||||||||||
Fees from other financial services |
|
5,416 |
|
|
4,512 |
|
|
15,381 |
|
|
12,594 |
| ||||
Fees from deposit liabilities |
|
4,091 |
|
|
2,309 |
|
|
11,717 |
|
|
6,713 |
| ||||
Fee income on other financial products |
|
2,592 |
|
|
2,282 |
|
|
7,647 |
|
|
5,850 |
| ||||
Fee income on loans serviced by others, net |
|
(882 |
) |
|
663 |
|
|
(369 |
) |
|
1,794 |
| ||||
Gain (loss) on sale of securities |
|
(913 |
) |
|
(268 |
) |
|
(640 |
) |
|
3,731 |
| ||||
Loss on investments |
|
|
|
|
|
|
|
|
|
|
(6,164 |
) | ||||
Other income |
|
1,825 |
|
|
1,569 |
|
|
4,984 |
|
|
4,361 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total other income |
|
12,129 |
|
|
11,067 |
|
|
38,720 |
|
|
28,879 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
General and administrative expenses: |
||||||||||||||||
Compensation and employee benefits |
|
14,753 |
|
|
13,090 |
|
|
44,046 |
|
|
38,647 |
| ||||
Occupancy and equipment |
|
7,896 |
|
|
7,225 |
|
|
22,387 |
|
|
21,324 |
| ||||
Data processing |
|
2,579 |
|
|
2,416 |
|
|
8,228 |
|
|
7,515 |
| ||||
Consulting |
|
1,582 |
|
|
671 |
|
|
4,374 |
|
|
2,298 |
| ||||
Amortization of goodwill and core deposit intangibles |
|
433 |
|
|
1,676 |
|
|
1,298 |
|
|
5,021 |
| ||||
Other |
|
7,992 |
|
|
8,350 |
|
|
25,280 |
|
|
25,594 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total general and administrative expenses |
|
35,235 |
|
|
33,428 |
|
|
105,613 |
|
|
100,399 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income before minority interest and income taxes |
|
24,566 |
|
|
19,488 |
|
|
71,106 |
|
|
57,209 |
| ||||
Minority interests |
|
42 |
|
|
48 |
|
|
131 |
|
|
162 |
| ||||
Income taxes |
|
8,519 |
|
|
7,015 |
|
|
24,102 |
|
|
19,835 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income before preferred stock dividends |
|
16,005 |
|
|
12,425 |
|
|
46,873 |
|
|
37,212 |
| ||||
Preferred stock dividends |
|
1,353 |
|
|
1,353 |
|
|
4,058 |
|
|
4,058 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income for common stock |
$ |
14,652 |
|
$ |
11,072 |
|
$ |
42,815 |
|
$ |
33,154 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest rate spread (%) |
|
3.28 |
|
|
3.08 |
|
|
3.28 |
|
|
3.10 |
|
HAWAIIAN ELECTRIC INDUSTRIES,INC.
(Registrant) |
HAWAIIAN ELECTRIC COMPANY, INC. (Registrant) | |||
/s/ CURTIS Y. HARADA
|
/s/ ERNEST T. SHIRAKI
| |||
Curtis Y. Harada |
Ernest T. Shiraki | |||
Controller |
Controller | |||
(Principal Accounting Officer of HEI) |
(Principal Accounting Officer of HECO) | |||
Date: October 21, 2002 |
Date: October 21, 2002 |