On November 16, 2023, Spire Inc (SR, Financial) released its 8-K filing, announcing the financial results for the fiscal year ended September 30, 2023. The company reported a net income of $217.5 million, or $3.85 per diluted share, a slight decrease from $220.8 million, or $3.95 per share, in the previous fiscal year. However, Spire's Net Economic Earnings (NEE), a non-GAAP measure, improved to $228.1 million, or $4.05 per share, compared to $216.3 million, or $3.86 per share, in fiscal 2022.
Financial Performance Breakdown
The Gas Utility segment's NEE was $200.5 million, slightly down from $202.7 million in the previous year, due to higher operating expenses despite an increase in contribution margin. The Gas Marketing segment experienced a significant increase in NEE to $47.6 million, up from $27.0 million, benefiting from favorable market conditions. The Midstream segment also saw an improvement in NEE, reporting $14.1 million compared to $11.1 million in the prior year.
Operational Highlights and Challenges
Spire's fiscal year faced challenges, including increased operation and maintenance expenses, which rose by $48.5 million. However, the company managed to increase its contribution margin by $88.1 million, reflecting the impact of new rates at Spire Missouri and Spire Alabama, partially offset by warmer weather effects. Taxes other than income taxes also increased due to higher gross receipts taxes and property taxes from continued infrastructure build-out.
Capital Investment and Future Outlook
Looking ahead, Spire expects fiscal 2024 NEE per share to be in the range of $4.25 to $4.45, with a long-term NEE per share growth target of 5-7%. The company's 10-year capital investment target of $7.2 billion through fiscal 2033 is primarily focused on infrastructure upgrades and new business at the Gas Utilities, accounting for 97% of capital investment. For fiscal 2024, capital expenditures are expected to be $765 million, including $100 million for the Spire Storage West expansion.
Fourth Quarter Insights
In the fiscal fourth quarter, Spire reported a consolidated net loss of $31.1 million, or $0.66 per share, compared to a net loss of $7.1 million, or $0.20 per share, in the same quarter of the previous year. The Gas Utility segment's NEE loss improved slightly, while the Gas Marketing segment's NEE decreased due to lower margins. The Midstream segment's NEE increased, reflecting optimization of withdrawal commitments at Spire Storage West.
Balance Sheet and Cash Flow Statements
Spire's balance sheet as of September 30, 2023, shows total assets of $10.3 billion, with net utility plant assets accounting for the majority. The company's capitalization includes $2.9 billion in shareholders' equity and $3.5 billion in long-term debt. Current liabilities stood at $1.7 billion. The cash flow statements detail the company's operating, investing, and financing activities over the fiscal year.
Spire Inc (SR, Financial) remains committed to its strategy of growth and operational excellence, as evidenced by its solid financial and operating performance in fiscal 2023. The company's focus on capital investment and infrastructure upgrades positions it well for continued success in the coming years.
For more detailed information, investors and interested parties can access the full earnings report and listen to the conference call and webcast hosted by Spire to discuss the fiscal 2023 results.
Explore the complete 8-K earnings release (here) from Spire Inc for further details.
