New Jersey Resources (NJR) Q4 2015 earnings summary

Executive summary

• FY2015 net income was $181.0 million versus $142.0 million; adjusted net financial earnings (NFE) were $151.5 million versus $176.9 million, or $1.78 versus $2.10 per basic share.

• Shareowners earned a 22.8% total return with dividends reinvested; the annual dividend rose 6.7% for the 20th consecutive year, and the year-end share price was a record $30.03.

Financial highlights

• Operating revenue was $2.734 billion versus $3.738 billion; operating income increased to $248.5 million from $201.2 million, while lower natural gas prices reduced reported revenue.

• Basic EPS was $2.12 versus $1.69; diluted EPS was $2.10 versus $1.67. Dividends declared per share were $0.915 versus $0.855, on a split-adjusted basis.

• Operating cash flow increased to $387.9 million from $356.8 million; investing cash outflow was $321.7 million and financing cash outflow was $63.4 million.

Outlook and guidance

• FY2016 NFE contribution targets: regulated natural gas distribution 60–70%; energy services 5–15%, with market-dependent upside; clean energy ventures 10–20%; midstream 5–10%; home services 1–3%.

• Forecast 16,000–18,000 new utility customers over FY2016–FY2017, expected to add $4.4 million in annual utility gross margin.

• FY2016 capital expenditure estimates: regulated utility $291.1 million; solar $80–$100 million; wind $90–$110 million; PennEast investment $40–$50 million.

• A discretionary $30 million pension contribution was planned for Q1 FY2016; no further pension contributions were expected over the following two fiscal years based on current actuarial assumptions.