American Electric Power Company, Inc. · NASDAQ:AEP
American Electric Power — Q2 2012 Earnings Presentation
18 slides from American Electric Power's earnings presentation, Jul 20, 2012
Slide 1: 2Q12 Earnings Release Presentation
2Q12 Earnings Release Presentation July 20, 2012
Slide 2: Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are
Slide 3: Second Quarter 2012 Highlights
Second Quarter 2012 Highlights 2nd Quarter Financial Performance $1.00 $0.75 $0.77 Delivered GAAP and Operating earnings of $0.73 $0.73 $0.80 $0.75 and $0.77 per share, respectively, for the second quarter and $1.55 and $1.57 per share, respectively, for the six month YTD period $0.60 GAAP EPS
Slide 4: 2Q12 Performance
2Q12 Performance Second Quarter Reconciliation 2Q12 Performance Drivers Weather was unfavorable by $2M vs. prior year, favorable $46M vs. normal Operating Earnings Gross Customer Switching up $56M from EPS ($ in millions) prior year 2Q11 $ 0.73 $352 Loss of POLR revenues $35M Customer Switchin
Slide 5: June YTD 2012 Performance
June YTD 2012 Performance June YTD Reconciliation YTD 2012 Performance Drivers Weather was unfavorable by $89M vs. Operating prior year, unfavorable $21M vs. normal Earnings Gross Customer Switching up $99M from EPS ($ in millions) prior year. As of June 2012, 34% of total 2011 $ 1.55 $744 AEP O
Slide 6: Normalized Load Trends
Normalized Load Trends AEP Residential Normalized GWh Sales AEP Commercial Normalized GWh Sales %Change vs. Prior Year %Change vs. Prior Year 15% 15% 10% 10% 4.4% 5% 5% 1.6% 0.3% 0.5% -0.1% 0.6% 0% 0% -2.8% -1.9% -1.5% -1.0% -0.4% -2.4% -5% -5% 2Q11 3Q11 4Q11 1Q12 2Q12 YTD12 2Q11 3Q11 4Q11 1Q12 2Q12
Slide 7: Industrial Sales Volumes
Industrial Sales Volumes AEP Industrial GWh by Sector GWh 2,000 Primary Metal Manuf acturing These 5 sectors account for approximately Chemical Manuf acturing 60% of AEP's total Industrial Sales. Petroleum and Coal Products Manuf acturing 1,800 Mining (except Oil & Gas) Paper Manuf acturing Industry
Slide 8: Coal to Gas Switching
Coal to Gas Switching 2nd Quarter 12 vs. 11 Capacity Factor YTD 12 vs. 11 Capacity Factor East West East West 90.0% 90.0% 81.5% 80.2% 80.0% 2Q11 2Q12 YTD11 YTD12 80.0% 72.9% 70.0% 69.9% 70.0% 70.0% 62.4% 55.1% 58.1% 60.0% 60.0% 44.8% 45.9% 50.0% 50.0% 38.4% 42.7% 40.0% 40.0% 28.6% 30.7% 25.3% 30.0%
Slide 9: Capitalization & Liquidity
Capitalization & Liquidity Total Debt / Total Capitalization Credit Statistics 70.0% 62.5% 57.2% Actual Target 60.0% 57.0% 55.3% 55.3% 55.2% FFO Interest Coverage 4.7 >3.6x FFO To Total Debt 19.9% 15%- 20% 50.0% Note: Credit statistics represent the trailing 12 months as of 06/30/2012 40.0% 30.0% 20
Slide 10: Remaining 2012 Outlook
Remaining 2012 Outlook Mixed retail load outlook Storm-related impacts Ohio regulatory outcomes O&M discipline 10
Slide 11: Questions
Questions 11
Slide 12: Reconciliation of GAAP to Operating Earnings
Reconciliation of GAAP to Operating Earnings $ millions Earnings Per Share 2nd Qtr 2nd Qtr 2nd Qtr 2nd Qtr 2011 2012 Change 2011 2012 Change Reported Earnings (GAAP) $ 352 $ 362 $ 10 $ 0.73 $ 0.75 $ 0.02 Special Items: Cost Restructuring Program - 8 8 0.00 0.02 0.02 AEP Operating Earnings 352 370 18
Slide 13: Quarterly Performance Comparison
Quarterly Performance Comparison American Electric Power Financial Results for 2nd Quarter 2012 Actual vs 2nd Quarter 2011 Actual 2011 GAAP 2011 Operating 2012 GAAP 2012 Operating 2011 Volumes Earnings Adjustments Earnings 2012 Volumes Earnings Adjustments Earnings (GWh) ($ millions) ($ millions) ($
Slide 14: YTD Performance Comparison
YTD Performance Comparison American Electric Power Financial Results for YTD June 2012 Actual vs YTD June 2011 Actual 2011 GAAP 2011 Operating 2012 GAAP 2012 Operating 2011 Volumes Earnings Adjustments Earnings 2012 Volumes Earnings Adjustments Earnings (GWh) ($ millions) ($ millions) ($ millions) (
Slide 15: Retail Rate Performance
Retail Rate Performance Rate Changes, net of Rate Changes, net of trackers (in millions) trackers (in millions) 2Q12 vs. 2Q11 YTD12 vs. YTD11 East Regulated East Regulated ($13) Integrated $13 Integrated Utilities Utilities Ohio Companies ($29) Ohio Companies ($32) West Regulated West Regulated $0 I
Slide 16: 2Q12 Retail Performance
2Q12 Retail Performance Retail Load* Weather Impact (weather normalized) (in millions) 2Q12 vs. 2Q11 2Q12 vs. 2Q11 East Regulated East Regulated 0.6% Integrated ($1) Integrated Utilities Utilities Ohio Companies (2.4%) Ohio Companies $10 West Regulated West Regulated 1.7% Integrated ($6) Integrated
Slide 17: YTD 2012 Retail Performance
YTD 2012 Retail Performance Retail Load* Weather Impact (weather normalized) (in millions) YTD12 vs. YTD11 YTD12 vs. YTD11 East Regulated East Regulated (0.8%) Integrated ($46) Integrated Utilities Utilities Ohio Companies (1.5%) Ohio Companies ($14) West Regulated West Regulated 1.0% Integrated ($1
Slide 18: Off System Sales Gross Margin Detail
Off System Sales Gross Margin Detail Second Quarter 2011 2012 Physical off-system sales margins ($millions) ($millions) increased from last year by $3M OSS Physical Sales $ 95 $ 98 Marketing/Trading $ 34 $ 20 AEP/Dayton Hub pricing: 28% Pre-Sharing Gross Margin $ 129 $ 118 decrease in liquidatio
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