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Previous: HATTERAS INCOME SECURITIES INC, NSAR-B, 1997-02-28 |
Next: AMERICAN HERITAGE FUND INC, 497, 1997-02-28 |
<PAGE>
Page 1 of 10
File No. 69-284
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-3A-2
Statement by Holding Company Claiming Exemption
Under Rule U-3A-2 from the Provisions of the
Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
HAWAIIAN ELECTRIC INDUSTRIES, INC. and
HAWAIIAN ELECTRIC COMPANY, INC.
each hereby files with the Securities and Exchange Commission, pursuant to Rule
2, its statement claiming exemption as a holding company from the provisions of
the Public Utility Holding Company Act of 1935 (PUHCA), and submits the
following information:
1. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt
wholesale generator (EWG) or foreign utility company in which
claimant directly or indirectly holds an interest.
Hawaiian Electric Industries, Inc., hereinafter referred to as "HEI,"
was incorporated under the laws of the State of Hawaii on July 20, 1981, for the
purpose of becoming the holding company of Hawaiian Electric Company, Inc.
(HECO) and its subsidiaries. Its principal executive office is located at 900
Richards Street, Honolulu, Hawaii 96813. The restructuring became effective on
July 1, 1983. HEI is a nonutility holding company which currently conducts no
business and owns no material assets other than the common stock of HECO, HEI
Investment Corp. (HEIIC), Malama Pacific Corp. (MPC), Hawaiian Tug & Barge Corp.
(HTB), HEI Diversified, Inc. (HEIDI), Pacific Energy Conservation Services, Inc.
(PECS) and HEI Power Corp. (HEIPC). HECO is the parent company of Hawaii
Electric Light Company, Inc. (HELCO) and Maui Electric Company, Limited (MECO).
MPC is the parent company of Malama Property
<PAGE>
Page 2 of 10
Investment Corp. (MPIC), Malama Waterfront Corp. (MWC), Malama Development Corp.
(MDC), Malama Realty Corp. (MRC), Malama Elua Corp. (MElC), Malama Hoaloha Corp.
(MHC), TMG Service Corp. (TMG) and Malama Mohala Corp. (MMoC). HTB is the parent
company of Young Brothers, Limited (YB). HEIDI is the parent company of American
Savings Bank, F.S.B. (ASB), which is the parent company of American Savings
Investment Services Corp. (ASISC), AdCommunications, Inc., American Savings
Mortgage Co., Inc. and ASB Service Corporation. HEIPC is the parent company of
HEI Power Corp. Guam (HPG) and HEI Power Corp. International, which is the
parent company of HEIPC Philippine Development, LLC, HEIPC Philippine Ventures,
HEIPC Lake Mainit Power, LLC, HEIPC Cambodia Ventures, HEIPC Phnom Penh Power
(General), LLC and HEIPC Phnom Penh Power (Limited), LLC.
HECO was incorporated under the laws of the Kingdom of Hawaii on
October 13, 1891, under the name of The Hawaiian Electric Company, Limited. Its
name was changed to Hawaiian Electric Company, Inc., on March 16, 1964. Its
principal executive office is located at 900 Richards Street, Honolulu, Hawaii
96813. It is a regulated operating electric public utility engaged in the
production, purchase, transmission, distribution and sale of electricity on the
island of Oahu, State of Hawaii. HELCO was incorporated under the laws of the
Republic of Hawaii on December 5, 1894. Its principal executive office is
located at 1200 Kilauea Avenue, Hilo, Hawaii 96720. It is a regulated operating
electric public utility engaged in the production, purchase, transmission,
distribution and sale of electricity on the island of Hawaii, State of Hawaii.
MECO was incorporated under the laws of the Territory of Hawaii on April 28,
1921, and purchased the franchise and certain assets of Island Electric Company,
Limited, which had been organized in 1911. Its principal executive office is
located at 210 Kamehameha Avenue, Kahului, Maui, Hawaii 96732. It is a regulated
operating electric public utility engaged in the production, purchase,
transmission, distribution and sale of electricity on the islands of Maui, Lanai
and Molokai, all located in the State of Hawaii.
HEIIC was incorporated under the laws of the State of Hawaii on May
25, 1984. Its principal executive office is located at 900 Richards Street,
Honolulu, Hawaii 96813. It is a
<PAGE>
Page 3 of 10
nonutility company organized primarily to invest in corporate securities and
other long-term investments. HEIIC holds investments primarily in leveraged
leases.
On December 30, 1985, HEIIC acquired, as part of its investment
portfolio, a 15.1899% undivided interest (the "Undivided Interest") in Plant
Robert W. Scherer Unit No. 2, an 818 -megawatt (MW) coal-fired generating unit
located in Monroe County, Georgia ("Unit No. 2") in a sale and leaseback
transaction (the "Transaction") with Oglethorpe Power Corporation (An Electric
Membership Generation and Transmission Corporation). The Transaction is
described in Amendment No. 1 (filed December 30, 1985) to the 1984 Form U-3A-2
filed by HEI and HECO and is the subject of letters (dated December 16 and 24,
1985), from Mudge Rose Guthrie Alexander and Ferdon to the Commission, to which
a reply was sent by Mr. Lewis B. Reich, Special Counsel (Reference No. 85-1216E-
OPUR). The undersigned takes the position that the passive nature of the
ownership by HEIIC which results from its participation in the Transaction is
exactly comparable to the form of ownership which would qualify under Rule
7(d)(1) under PUHCA. Accordingly, although the information contained in the
aforesaid Amendment No. 1 was submitted, the undersigned and HEIIC reserve all
rights to claim (and do hereby claim) that by virtue of HEIIC's participation in
the Transaction, HEIIC has not acquired "ownership" of facilities used for the
generation, transmission or distribution of electric energy for sale so as to
result in HEIIC's becoming an "electric utility company" as defined in Section
2(a)(3) of the Act.
MPC was incorporated on December 5, 1985, MPIC and MWC were
incorporated on December 30, 1988, MDC was incorporated on December 15, 1989,
and MRC, MElC, MHC, TMG and MMoC were incorporated on August 21, 1990, all under
the laws of the State of Hawaii, with principal executive offices located at 915
Fort Street Mall, Honolulu, Hawaii 96813. MPC and its subsidiaries are
nonutility companies organized to invest in and develop real estate.
Dillingham Tug & Barge Corporation was incorporated under the laws of
the State of Hawaii on March 16, 1972, and its name was changed to Hawaiian Tug
& Barge Corp. on October 1, 1986 when HTB was acquired by HEI from Dillingham
Corporation. Its principal executive office is located at 705 N. Nimitz Highway,
Honolulu, Hawaii 96817. It is a nonutility
<PAGE>
Page 4 of 10
company organized to provide charter towing and harbor-assist services primarily
within the State of Hawaii.
YB was incorporated under the laws of the State of Hawaii on January
7, 1960. Its principal executive office is located at 705 N. Nimitz Highway,
Honolulu, Hawaii 96817. It is a regulated company organized to transport cargo
within the State of Hawaii and operates as the major authorized common carrier
under the Hawaii Water Carrier Act.
HEIDI was incorporated under the laws of the State of Hawaii on
January 6, 1988. Its principal executive office is located at 900 Richards
Street, Honolulu, Hawaii 96813. It is a nonutility holding company which
currently conducts no business and owns no material assets other than the common
stock of ASB. ASB was chartered by the Federal Home Loan Bank on January 23,
1987, and is qualified to do business in the State of Hawaii. Its wholly owned
subsidiaries were incorporated under the laws of the State of Hawaii. The
principal executive offices of ASB and its subsidiaries are located at 915 Fort
Street Mall, Honolulu, Hawaii 96813. ASB and its subsidiaries are nonutility
companies providing financial and related services. ASB was acquired on May 26,
1988. ASB's business consists primarily of attracting deposits from the general
public and using such deposits, together with borrowings and other funds, to
make residential and other real estate-related loans which enable borrowers to
purchase, refinance, construct or improve real estate; to invest in loans
secured by real estate and in mortgage-backed and other securities; and to make
various types of commercial and consumer loans. ASB Service Corporation is a
state-chartered corporation which holds real estate for use by ASB employees;
American Savings Mortgage Co., Inc. is a mortgage brokerage company;
AdCommunications, Inc. is an advertising agency; and ASISC markets insurance
products.
PECS was incorporated under the laws of the State of Hawaii on August
12, 1994. Its principal executive office is located at 900 Richards Street,
Honolulu, Hawaii 96813. PECS was formed as a nonutility service company to
promote energy conservation in Hawaii and the Pacific Basin, but had no
operations until December 1996. PECS is currently a contract services company
providing limited services to an affiliate.
<PAGE>
Page 5 of 10
HEIPC was incorporated under the laws of the State of Hawaii on March
24, 1995. Its principal executive office is located at 220 South King Street,
Honolulu, Hawaii 96813. It is a nonutility company formed to pursue independent
power projects and energy services projects in Asia and the Pacific. HEIPC will
directly or indirectly own or operate overseas projects through interests it
acquires in utility facilities or utility companies operating in foreign
countries. In September 1996, HEIPC's subsidiary, HPG, entered into an energy
conversion agreement with the Guam Power Authority, pursuant to which HPG will
rehabilitate, operate and maintain for approximately 20 years two oil-fired
26.5-MW steam turbine generators at Tanguisson, Guam. HEIPC's other direct and
indirect subsidiaries have been formed for the purposes of owning, acquiring an
interest in or operating utility facilities or utility companies in foreign
countries, but have not yet acquired any such interest.
Until December 23, 1996, HEI owned the stock of Lalamilo Ventures,
Inc. (LVI), which was incorporated under the laws of the State of Hawaii under
the name Lalamilo Ventures (Hawaii), Inc. on May 7, 1987. Its name was changed
to Lalamilo Ventures, Inc. on July 22, 1987. LVI was a utility company under
PUHCA, but was not a utility under Hawaii State law, and was organized to own
and operate alternate energy facilities within the State of Hawaii. On December
23, 1996, LVI was merged with and into HELCO, with HELCO being the surviving
corporation.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation,
transmission and distribution of electric energy for sale, or for
the production, transmission and distribution of natural or
manufactured gas, indicating the location of principal generating
plants, transmission lines, producing fields, gas manufacturing
plants and electric and gas distribution facilities, including all
such properties which are outside the State in which claimant and
its subsidiaries are organized and all transmission or pipelines
which deliver or receive electric energy or gas at the borders of
such State.
HEI is a nonutility holding company which currently conducts no
business and owns no material operating assets other than the common stock of
HECO, HEIIC, MPC, HTB, HEIDI, PECS and HEIPC. Currently, the consolidated
revenues of HEI are derived primarily from electric service, savings bank,
maritime freight transportation and real estate operations and investments.
<PAGE>
Page 6 of 10
HECO owns and operates three electric generating plants located on the
island of Oahu, with an aggregate generating capability of 1,263 megawatts as of
December 31, 1996. HECO's power purchase agreements with Kalaeloa Partners, L.P.
and AES Barbers Point, Inc. each provide for an additional 180 megawatts of firm
generating capability as of December 31, 1996. HECO's power purchase agreement
with Honolulu Resource Recovery Venture provides for an additional 46 megawatts
of firm generating capability as of December 31, 1996.
HELCO owns and operates electric generating equipment with an
aggregate generating capability of approximately 157 megawatts as of December
31, 1996. Its five power plants are located on the island of Hawaii. As of
December 31, 1996, HELCO had a power purchase agreement with Puna Geothermal
Ventures providing for an additional 30 megawatts of firm generating capability
and a power purchase agreement with Hilo Coast Processing Company (HCPC)
providing for an additional 22 megawatts of firm generating capability. On
December 23, 1996, LVI merged into HELCO and HELCO currently owns and operates
the former LVI windfarm on the island of Hawaii. The windfarm at Waikoloa
consists of 90 operating wind machines with a total operating capacity of 1.8
megawatts as of December 31, 1996.
MECO owns and operates electric generating equipment located on the
islands of Maui, Lanai and Molokai, with an aggregate generating capability of
approximately 231 megawatts as of December 31, 1996. A power purchase agreement
between MECO and a sugar company provided for an additional 16 megawatts of firm
generating capability as of December 31, 1996.
3. The following information for the last calendar year with respect
to claimant and each of its subsidiary public utility companies:
(a) Number of kwh. of electric energy sold (at retail or wholesale),
and Mcf. of natural or manufactured gas distributed at retail.
In 1996, HEI sold no kilowatthours of electric energy, HECO sold at retail
7,091,147,130 kwh. of electric energy, HELCO sold at retail 875,746,565 kwh. of
electric energy, and MECO sold at retail 1,024,330,861 kwh. of electric energy.
Prior to December 23, 1996, LVI sold 6,679,200 kwh. of electric energy, of which
789,600 kwh. was sold at wholesale to HELCO at rates approved by the PUC and
5,889,600 kwh. was sold at a discounted rate to the Hawaii County Department of
Water Supply, LVI's sole customer other than HELCO.
<PAGE>
Page 7 of 10
(b) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which
each such company is organized.
None.
(c) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in which each
such company is organized, or at the State line.
None.
(d) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas purchased outside the State in which each such
company is organized or at the State line.
None.
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in an
EWG or a foreign utility company, stating monetary amounts in
United States dollars:
(a) Name, location, business address and description of the facilities
used by the EWG or foreign utility company for the generation,
transmission and distribution of electric energy for sale or for
the distribution at retail of natural or manufactured gas.
HPG was incorporated under the laws of the State of Hawaii on August
13, 1996. Its principal executive offices are located at Tanguisson power plant,
NCS Dededo, Guam 96921 and 220 South King Street, Honolulu, Hawaii 96813. It is
a foreign utility company organized primarily to assume operational control of
Guam Power Authority's (GPA) Tanguisson power plant. In September 1996, HPG
entered into an energy conversion agreement with the GPA, pursuant to which HPG
will rehabilitate, operate and maintain for approximately 20 years two oil-fired
26.5-MW steam turbine generators at Tanguisson, Guam. On October 30, 1996, HEI
filed with the SEC a "Notification of Foreign Utility Company Status" on Form U-
57, stating that HPG will assume operational control of the Tanguisson facility
by November 24, 1996. On November 11, 1996, HPG assumed operational control of
the Tanguisson facility. Other than the Tanguisson power plant, HPG neither owns
nor operates any other facilities used for the generation, transmission or
distribution of electric energy for sale or the distribution at retail of
natural or manufactured gas.
<PAGE>
Page 8 of 10
(b) Name of each system company that holds an interest in such EWG or
foreign utility company and description of the interest held.
HEIPC owns all of the issued and outstanding shares of common stock of
HPG. HEI owns all of the issued and outstanding shares of common stock of HEIPC.
(c) Type and amount of capital invested, directly or indirectly, by
the holding company claiming exemption; any direct or indirect
guarantee of the security of the EWG or foreign utility company by
the holding company claiming exemption; and any debt or other
financial obligation for which there is recourse, directly or
indirectly, to the holding company claiming exemption or another
system company, other than the EWG or foreign utility company.
As of December 31, 1996, HEI had invested, directly or indirectly (in
addition to retained earnings), $168,000 of capital in HPG. Also as of December
31, 1996, there were short-term intercompany borrowings by HPG from HEIPC of
$100,000 and no other borrowings. As of December 31, 1996, HEI has not directly
or indirectly guaranteed the securities of HPG.
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
As of December 31, 1996, HPG's capitalization (i.e., common stock
equity) was $230,000. For the year ended December 31, 1996, HPG's net income was
$62,000.
(e) Identify any service, sales or construction contract(s) between
the EWG or foreign utility company and a system company, and
describe the services to be rendered or goods sold and fees or
revenues under such agreement(s).
None.
<PAGE>
Page 9 of 10
EXHIBIT A
Unaudited consolidating statements of income and retained earnings of
Hawaiian Electric Industries, Inc. and its subsidiary companies for the calendar
year 1996, together with an unaudited consolidating balance sheet of Hawaiian
Electric Industries, Inc. and its subsidiary companies as of December 31, 1996,
is attached hereto as Exhibit A.
Unaudited consolidating income and retained earnings information for
the calendar year 1996 for Hawaiian Electric Company, Inc. and its subsidiary
companies, for HEI Diversified, Inc. and its subsidiary company, for American
Savings Bank, F.S.B. and its subsidiary companies, for Hawaiian Tug & Barge
Corp. and its subsidiary company, for Malama Pacific Corp. and its subsidiary
companies, for HEI Power Corp. and its subsidiary companies and for HEI Power
Corp. International and its subsidiary companies, together with unaudited
consolidating balance sheet information for said companies and their respective
subsidiaries as of December 31, 1996, are attached hereto as Exhibits A-1
through A-7.
EXHIBIT B
The unaudited financial data schedules for HEI and its subsidiaries
and for HECO and its subsidiaries are attached hereto as Exhibit B.
EXHIBIT C
Not applicable.
<PAGE>
Page 10 of 10
Each of the above-named claimants has caused this statement to be duly
executed on its behalf by its duly authorized officers on this twenty-fifth day
of February 1997.
HAWAIIAN ELECTRIC INDUSTRIES, INC.
Claimant
By /s/ Robert F. Clarke
--------------------------------
Robert F. Clarke
President and
ATTEST: Chief Executive Officer
/s/ Betty Ann M. Splinter By /s/ Robert F. Mougeot
- ----------------------------- --------------------------------
Betty Ann M. Splinter Robert F. Mougeot
Secretary Financial Vice President and
Chief Financial Officer
HAWAIIAN ELECTRIC COMPANY, INC.
Claimant
By /s/ T. Michael May
--------------------------------
T. Michael May
ATTEST: President and
Chief Executive Officer
/s/ Molly M. Egged By /s/ Jackie M. Erickson
- ---------------------------- --------------------------------
Molly M. Egged Jackie M. Erickson
Secretary Vice President - General Counsel
and Government Relations
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Peter C. Lewis
Vice President-Administration
Hawaiian Electric Industries, Inc.
P. O. Box 730
Honolulu, Hawaii 96808-0730
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Balance Sheet (Page 1 of 2) Page 1 of 5
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaiian Hawaiian
Hawaiian Tug & Malama Electric
Electric Barge HEI Pacific Company,
Industries, Corp. and Investment Corp. and Inc. and
ASSETS Inc. subsidiary Corp. subsidiaries subsidiaries
- ------ --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 1,161 776 -- 304 $ 823
Notes receivable from
affiliated companies 40,455 -- -- -- --
Accounts receivable and
unbilled revenues, net 2,135 5,829 -- 92 124,483
Inventories, at average cost -- 1,313 -- -- 47,432
Real estate developments -- -- -- 33,210 --
Investment and mortgage-backed
securities -- -- -- -- --
Other investments 810 6 59,761 12,032 --
Loans receivable, net -- -- -- -- --
Property, plant and equipment, net 3,177 45,724 -- 47 1,845,502
Regulatory assets -- 2,424 -- -- 98,380
Other 2,933 2,649 -- 6,892 48,926
Goodwill and other intangibles -- -- -- -- --
Investment in wholly owned
subsidiaries, at equity 1,021,115 -- -- -- --
---------- ------ ------ ------ ----------
$1,071,786 58,721 59,761 52,577 $2,165,546
========== ====== ====== ====== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
- --------------------
LIABILITIES
Accounts payable $ 7,231 2,343 22 1,020 $ 78,496
Deposit liabilities -- -- -- -- --
Short-term borrowings 87,600 4,300 -- 27,631 125,920
Securities sold under agreements
to repurchase -- -- -- -- --
Advances from
Federal Home Loan Bank -- -- -- -- --
Long-term debt 191,500 15,400 -- 7,954 602,226
Deferred income taxes 3,055 6,035 43,702 221 119,613
Unamortized tax credits 30 1,192 -- -- 47,634
Contributions in aid of construction -- -- -- -- 197,805
Other 9,518 8,359 999 387 155,293
---------- ------ ------ ------ ----------
298,934 37,629 44,723 37,213 1,326,987
---------- ------ ------ ------ ----------
PREFERRED STOCK OF ELECTRIC
UTILITY SUBSIDIARIES
Subject to mandatory
redemption -- -- -- -- 38,955
Not subject to
mandatory redemption -- -- -- -- 48,293
---------- ------ ------ ------ ----------
-- -- -- -- 87,248
---------- ------ ------ ------ ----------
STOCKHOLDERS' EQUITY
Preferred stock -- -- -- -- --
Common stock 622,945 13,229 22,166 29,975 383,541
Retained earnings (deficit) 149,907 7,863 (7,128) (14,611) 367,770
---------- ------ ------ ------ ----------
772,852 21,092 15,038 15,364 751,311
---------- ------ ------ ------ ----------
$1,071,786 58,721 59,761 52,577 $2,165,546
========== ====== ====== ====== ==========
Continued on next page.
</TABLE>
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Balance Sheet (Page 2 of 2) Page 2 of 5
December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEI Reclassifi-
HEI Pacific Power cations
Diversified, Energy Corp. and
Inc. and Conservation and Eliminations
ASSETS subsidiary Services, Inc. subsidiaries Dr. (Cr.) Consolidated
- ------ ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 93,905 101 347 -- $ 97,417
Notes receivable from
affiliated companies -- -- -- (40,455) --
Accounts receivable and
unbilled revenues, net 23,635 23 615 (5,954) 150,858
Inventories, at average cost -- -- -- -- 48,745
Real estate developments -- -- -- -- 33,210
Investment and mortgage-backed
securities 1,377,591 -- -- -- 1,377,591
Other investments -- -- -- -- 72,609
Loans receivable, net 2,002,028 -- -- -- 2,002,028
Property, plant and 47,045 -- 272 -- 1,941,767
equipment, net
Regulatory assets -- -- -- -- 100,804
Other 12,350 -- 26 -- 73,776
Goodwill and other 37,035 -- -- -- 37,035
intangibles
Investment in wholly owned
subsidiaries, at equity -- -- -- (1,021,115) --
---------- ---- ------ ----------- ----------
$3,593,589 124 1,260 (1,067,524) $5,935,840
========== ==== ====== =========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
- --------------------
LIABILITIES
Accounts payable $ 24,687 -- 51 5,954 $ 107,896
Deposit liabilities 2,150,370 -- -- -- 2,150,370
Short-term borrowings -- -- 4,547 33,455 216,543
Securities sold under agreements
to repurchase 479,742 -- -- -- 479,742
Advances from
Federal Home Loan Bank 684,274 -- -- -- 684,274
Long-term debt -- -- -- 7,000 810,080
Deferred income taxes 13,012 -- (29) -- 185,609
Unamortized tax credits 1 -- -- -- 48,857
Contributions in aid of
construction -- -- -- -- 197,805
Other 19,349 32 627 -- 194,564
---------- ---- ------ ----------- ----------
3,371,435 32 5,196 46,409 5,075,740
---------- ---- ------ ----------- ----------
PREFERRED STOCK OF ELECTRIC
UTILITY SUBSIDIARIES
Subject to mandatory
redemption -- -- -- -- 38,955
Not subject to
mandatory redemption -- -- -- -- 48,293
---------- ---- ------ ----------- ----------
-- -- -- -- 87,248
---------- ---- ------ ----------- ----------
STOCKHOLDERS' EQUITY
Preferred stock -- -- -- -- --
Common stock 166,169 220 500 615,800 622,945
Retained earnings (deficit) 55,985 (128) (4,436) 405,315 149,907
---------- ---- ------ ----------- ----------
222,154 92 (3,936) 1,021,115 772,852
---------- ---- ------ ----------- ----------
$3,593,589 124 1,260 1,067,524 $5,935,840
========== ==== ====== =========== ==========
</TABLE>
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Income (Page 1 of 2) Page 3 of 5
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaiian
Hawaiian Hawaiian Malama Electric
Electric Tug & Barge HEI Pacific Company,
Industries, Corp. and Investment Corp. and Inc. and
Inc. subsidiary Corp. subsidiaries subsidiaries
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
REVENUES
Electric utility $ -- -- -- -- $1,080,868
Savings bank -- -- -- -- --
Other 2,731 48,748 453 8,437 --
Equity in net income of subsidiaries 93,488 -- -- -- --
-------- --------- ----- --------- ----------
96,219 48,748 453 8,437 1,080,868
-------- --------- ----- --------- ----------
EXPENSES
Electric utility -- -- -- -- 907,255
Savings bank -- -- -- -- --
FDIC special assessment -- -- -- -- --
Other 9,615 45,729 332 10,208 --
-------- --------- ----- --------- ----------
9,615 45,729 332 10,208 907,255
-------- --------- ----- --------- ----------
OPERATING INCOME (LOSS)
Electric utility -- -- -- -- 173,613
Savings bank -- -- -- -- --
Other 86,604 3,019 121 (1,771) --
-------- --------- ----- --------- ----------
86,604 3,019 121 (1,771) 173,613
-------- --------- ----- --------- ----------
Interest expense-electric
utility and other (18,103) (1,396) (6) (1,326) (47,451)
Allowance for borrowed funds
used during construction -- -- -- -- 5,862
Preferred stock dividends of electric
utility subsidiaries -- -- -- -- (2,664)
Allowance for equity funds used
during construction -- -- -- -- 11,741
-------- --------- ----- --------- ----------
INCOME (LOSS) BEFORE INCOME TAXES
AND PREFERRED STOCK DIVIDENDS
OF HECO 68,501 1,623 115 (3,097) 141,101
Income tax expense (benefit) (10,157) 802 56 6 55,888
-------- --------- ----- --------- ----------
INCOME (LOSS) BEFORE PREFERRED STOCK
DIVIDENDS OF HECO 78,658 821 59 (3,103) 85,213
Preferred stock dividends of HECO -- -- -- -- 3,865
-------- --------- ----- --------- ----------
NET INCOME (LOSS) $ 78,658 821 59 (3,103) $ 81,348
======== ========= ===== ======== ==========
</TABLE>
Continued on next page.
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Income (Page 2 of 2) Page 4 of 5
Year ended December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEI Reclassifi-
HEI Pacific Power cations
Diversified, Energy Corp. and
Inc. and Conservation and Eliminations
subsidiary Services, Inc. subsidiaries Dr. (Cr.) Consolidated
---------------- -------------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C>
REVENUES
Electric utility $ -- -- -- -- $1,080,868
Savings bank 271,402 -- -- -- 271,402
Other 498 -- 349 2,914 58,302
Equity in net income of subsidiaries -- -- -- 93,488 --
--------- -------------- ------------ --------------- ----------
271,900 -- 349 96,402 1,410,572
--------- -------------- ------------ --------------- ----------
EXPENSES
Electric utility -- -- -- -- 907,255
Savings bank 231,346 -- -- -- 231,346
FDIC special assessment 13,835 -- -- -- 13,835
Other 1,401 12 2,900 (307) 69,890
--------- -------------- ------------ --------------- ----------
246,582 12 2,900 (307) 1,222,326
--------- -------------- ------------ --------------- ----------
OPERATING INCOME (LOSS)
Electric utility -- -- -- -- 173,613
Savings bank 26,221 -- -- -- 26,221
Other (903) (12) (2,551) 96,095 (11,588)
--------- -------------- ------------ --------------- ----------
25,318 (12) (2,551) 96,095 188,246
--------- -------------- ------------ --------------- ----------
Interest expense-electric utility
and other -- -- (157) (2,607) (65,832)
Allowance for borrowed funds
used during construction -- -- -- -- 5,862
Preferred stock dividends of
electric utility subsidiaries -- -- -- 3,865 (6,529)
Allowance for equity funds used
during construction -- -- -- -- 11,741
--------- -------------- ------------ --------------- ----------
INCOME (LOSS) BEFORE INCOME TAXES AND
PREFERRED STOCK DIVIDENDS OF HECO 25,318 (12) (2,708) 97,353 133,488
Income taxes 8,200 -- 35 -- 54,830
--------- -------------- ------------ --------------- ----------
INCOME (LOSS) BEFORE
PREFERRED STOCK
DIVIDENDS OF HECO 17,118 (12) (2,743) 97,353 78,658
Preferred stock dividends of
HECO -- -- -- (3,865) --
--------- -------------- ------------ --------------- ----------
NET INCOME (LOSS) $ 17,118 (12) (2,743) 93,488 $ 78,658
========= ============== ============ =============== ==========
</TABLE>
<PAGE>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES Exhibit A
Consolidating Statement of Retained Earnings Page 5 of 5
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaiian
Hawaiian Hawaiian Malama Electric
Electric Tug & Barge HEI Pacific Company,
Industries, Corp. and Investment Corp. and Inc. and
Inc. subsidiary Corp. subsidiaries subsidiaries
--------------- ----------------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $144,216 7,088 (7,187) (11,508) $343,425
Net income (loss) 78,658 821 59 (3,103) 81,348
Common stock dividends (72,967) (46) -- -- (57,003)
------------ ------- ------- --------- ----------
Retained earnings (deficit), end of year $149,907 7,863 (7,128) (14,611) $367,770
============ ======= ======= ========= ==========
</TABLE>
Continued below.
<TABLE>
<CAPTION>
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES
Consolidating Statement of Retained Earnings
Year ended December 31, 1996
(Unaudited)
(in thousands)
(Continued)
HEI Reclassifi-
HEI Pacific Power cations
Diversified, Energy Corp. and
Inc. and Conservation and Eliminations
subsidiary Services, Inc. subsidiaries Dr. (Cr.) Consolidated
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ 49,790 (116) (1,693) 379,799 $144,216
Net income (loss) 17,118 (12) (2,743) 93,488 78,658
Common stock dividends (10,923) -- -- (67,972) (72,967)
-------- ------ -------- -------- --------
Retained earnings (deficit), end
of year $ 55,985 (128) (4,436) 405,315 $149,907
======== ====== ======== ======== ========
</TABLE>
<PAGE>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaii Reclassifi-
Hawaiian Electric Maui cations
Electric Light Electric and
Company, Company, Company, Eliminations
ASSETS Inc. Inc. Limited Dr. (Cr.) Consolidated
- ---------------------------------------- ----------- -------- -------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 9 757 57 -- $ 823
Notes receivable from
affiliated companies 59,624 -- -- (59,624) --
Accounts receivable and unbilled
revenues, net 86,240 19,302 16,921 2,020 124,483
Inventories, at average cost 28,961 5,504 12,967 -- 47,432
Property, plant and equipment, net 1,138,916 359,370 347,216 -- 1,845,502
Regulatory assets 71,721 15,063 11,596 -- 98,380
Other 23,680 16,813 8,433 -- 48,926
Investment in wholly owned
subsidiaries, at equity 290,785 -- -- (290,785) --
----------- -------- -------- ------------ ------------
$1,699,936 416,809 397,190 (348,389) $2,165,546
=========== ======== ======== ============ ============
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ----------------------------------------
LIABILITIES
Accounts payable $ 49,702 12,522 15,336 (936) $ 78,496
Short-term borrowings 125,920 46,000 13,624 59,624 125,920
Long-term debt 368,437 95,610 138,179 -- 602,226
Deferred income taxes 104,304 3,928 11,381 -- 119,613
Unamortized tax credits 29,051 8,666 9,917 -- 47,634
Contributions in aid of construction 127,929 46,777 23,099 -- 197,805
Other 87,589 42,694 23,926 (1,084) 155,293
----------- -------- -------- ------------ ------------
892,932 256,197 235,462 57,604 1,326,987
----------- -------- -------- ------------ ------------
PREFERRED STOCK
Subject to mandatory redemption 25,400 7,400 6,155 -- 38,955
Not subject to mandatory
redemption 30,293 10,000 8,000 -- 48,293
----------- -------- -------- ------------ ------------
55,693 17,400 14,155 -- 87,248
----------- -------- -------- ------------ ------------
STOCKHOLDER'S EQUITY
Common stock 383,541 91,432 88,776 180,208 383,541
Retained earnings 367,770 51,780 58,797 110,577 367,770
----------- -------- -------- ------------ ------------
751,311 143,212 147,573 290,785 751,311
----------- -------- -------- ------------ ------------
$1,699,936 416,809 397,190 348,389 $2,165,546
=========== ======== ======== ============ ============
</TABLE>
<PAGE>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES Exhibit A-1
Consolidating Schedule - Income Information Page 2 of 2
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaii Reclassifi-
Hawaiian Electric Maui cations
Electric Light Electric and
Company, Company, Company, Eliminations
Inc. Inc. Limited Dr. (Cr.) Consolidated
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
REVENUES
Electric utility $780,442 156,955 148,021 4,550 $1,080,868
Equity in net income of subsidiaries 29,417 -- -- 29,417 --
-------- ------- ------- ------ ----------
809,859 156,955 148,021 33,967 1,080,868
-------- ------- ------- ------ ----------
EXPENSES 661,739 126,922 118,594 -- 907,255
-------- ------- ------- ------ ----------
OPERATING INCOME 148,120 30,033 29,427 33,967 173,613
Interest expense (34,116) (9,027) (8,858) (4,550) (47,451)
Allowance for borrowed funds used during
construction 2,325 1,748 1,789 -- 5,862
Preferred stock dividends of electric
utility subsidiaries -- -- -- 2,664 (2,664)
Allowance for equity funds used during
construction 4,378 3,714 3,649 -- 11,741
-------- ------- ------- ------ ----------
INCOME BEFORE INCOME TAX
EXPENSE AND PREFERRED
STOCK DIVIDENDS 120,707 26,468 26,007 32,081 141,101
Income taxes 35,494 10,292 10,102 -- 55,888
-------- ------- ------- ------ ----------
INCOME BEFORE PREFERRED
STOCK DIVIDENDS 85,213 16,176 15,905 32,081 85,213
Preferred stock dividends 3,865 1,503 1,161 (2,664) 3,865
-------- ------- ------- ------ ----------
NET INCOME $ 81,348 14,673 14,744 29,417 $ 81,348
======== ======= ======= ====== ==========
</TABLE>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Hawaii Reclassifi-
Hawaiian Electric Maui cations
Electric Light Electric and
Company, Company, Company, Eliminations
Inc. Inc. Limited Dr. (Cr.) Consolidated
----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Retained earnings, beginning of year $343,425 45,500 54,697 100,197 $343,425
Net income 81,348 14,673 14,744 29,417 81,348
Common stock dividends (57,003) (8,393) (10,644) (19,037) (57,003)
-------- ------- ------- -------- --------
Retained earnings, end of year $367,770 51,780 58,797 110,577 $367,770
======== ======= ======= ======== ========
</TABLE>
<PAGE>
HEI DIVERSIFIED, INC. AND SUBSIDIARY Exhibit A-2
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
American Reclassifi-
Savings cations
HEI Bank, and
Diversified, F.S.B. and Eliminations
ASSETS Inc. subsidiaries Dr. (Cr.) Consolidated
- ---------------------------------------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Cash and equivalents $ -- 93,905 -- $ 93,905
Accounts receivable and
unbilled revenues, net 2,902 20,733 -- 23,635
Investment and mortgage-backed
securities -- 1,377,591 -- 1,377,591
Loans receivable, net -- 2,002,028 -- 2,002,028
Property, plant and equipment, net -- 47,045 -- 47,045
Other -- 12,350 -- 12,350
Goodwill and other intangibles -- 37,035 -- 37,035
Investment in wholly owned
subsidiary, at equity 222,050 -- (222,050) --
------------ --------- ---------- ----------
$224,952 3,590,687 (222,050) $3,593,589
============ ========= ========== ==========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ----------------------------------------
LIABILITIES
Accounts payable $ 1,272 23,415 -- $ 24,687
Deposit liabilities -- 2,150,370 -- 2,150,370
Securities sold under
agreements to repurchase -- 479,742 -- 479,742
Advances from Federal Home Loan Bank -- 684,274 -- 684,274
Deferred income taxes (128) 13,140 -- 13,012
Unamortized tax credits 1 -- -- 1
Other 1,653 17,696 -- 19,349
------------ --------- ---------- ----------
2,798 3,368,637 -- 3,371,435
------------ --------- ---------- ----------
STOCKHOLDER'S EQUITY
Common stock 166,169 151,827 151,827 166,169
Retained earnings 55,985 70,223 70,223 55,985
------------ --------- ---------- ----------
222,154 222,050 222,050 222,154
------------ --------- ---------- ----------
$224,952 3,590,687 222,050 $3,593,589
============ ========= ========== ==========
</TABLE>
<PAGE>
HEI DIVERSIFIED, INC. AND SUBSIDIARY Exhibit A-2
Consolidating Schedule - Income Information Page 2 of 2
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
American Reclassifi-
Savings cations
HEI Bank, and
Diversified, F.S.B. and Eliminations
Inc. subsidiaries Dr. (Cr.) Consolidated
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUES
Savings bank $ -- 271,402 -- $271,402
Other 498 -- -- 498
Equity in net income of subsidiary 14,968 -- 14,968 --
------------ ------------ ------------ ------------
15,466 271,402 14,968 271,900
------------ ------------ ------------ ------------
EXPENSES
Savings bank -- 231,346 -- 231,346
FDIC special assessment -- 13,835 -- 13,835
Other 1,401 -- -- 1,401
------------ ------------ ------------ ------------
1,401 245,181 -- 246,582
------------ ------------ ------------ ------------
OPERATING INCOME (LOSS)
Savings bank -- 26,221 -- 26,221
Other 14,065 -- 14,968 (903)
------------ ------------ ------------ ------------
14,065 26,221 14,968 25,318
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAX EXPENSE 14,065 26,221 14,968 25,318
Income tax expense (benefit) (3,053) 11,253 -- 8,200
------------ ------------ ------------ ------------
NET INCOME $17,118 14,968 14,968 $ 17,118
============ ============ ============ ============
</TABLE>
HEI DIVERSIFIED, INC. AND SUBSIDIARY
Consolidating Schedule - Retained Earnings Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
American Reclassifi-
Savings cations
HEI Bank, and
Diversified, F.S.B. and Eliminations
Inc. subsidiaries Dr. (Cr.) Consolidated
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Retained earnings, beginning of year $ 49,790 65,178 65,178 $49,790
Net income 17,118 14,968 14,968 17,118
Common stock dividends (10,923) (9,923) (9,923) (10,923)
-------- ------- ------- --------
Retained earnings, end of year $ 55,985 70,223 70,223 $55,985
======== ======= ======= ========
</TABLE>
<PAGE>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
American American cations
American Savings AdCom- Savings and
Savings Investment ASB muni Mortgage Elimi-
Bank, Services Service cations, Co., nations Consoli-
ASSETS F.S.B. Corp. Corporation Inc. Inc. Dr. (Cr.) dated
- ----------------------------- ------------ ---------- ------------ --------- --------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Cash and equivalents $ 93,905 1,393 47 18 238 (1,696) $ 93,905
Accounts receivable and
unbilled revenues, net 20,733 -- -- -- -- -- 20,733
Investment and
mortgage-backed securities 1,377,591 -- -- -- -- -- 1,377,591
Loans receivable, net 2,002,028 -- -- -- -- -- 2,002,028
Property, plant and
equipment, net 46,940 37 43 -- 25 -- 47,045
Other 12,259 89 -- 262 2 (262) 12,350
Goodwill and other
intangibles 37,025 10 -- -- -- -- 37,035
Investment in wholly owned
subsidiaries, at equity 1,513 -- -- -- -- (1,513) --
---------- ----- ---- ---- ----- ------ ----------
$3,591,994 1,529 90 280 265 (3,471) $3,590,687
========== ===== ==== ==== ===== ====== ==========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- -----------------------------
LIABILITIES
Accounts payable $ 23,415 -- -- -- -- -- $ 23,415
Deposit liabilities 2,152,066 -- -- -- -- 1,696 2,150,370
Securities sold under
agreements to repurchase 479,742 -- -- -- -- -- 479,742
Advances from
Federal Home Loan Bank 684,274 -- -- -- -- -- 684,274
Deferred income taxes 13,140 -- -- -- -- -- 13,140
Other 17,307 519 -- 33 99 262 17,696
---------- ----- ---- ---- ----- ------ ----------
3,369,944 519 -- 33 99 1,958 3,368,637
---------- ----- ---- ---- ----- ------ ----------
STOCKHOLDER'S EQUITY
Common stock 151,827 10 209 61 439 719 151,827
Retained earnings (deficit) 70,223 1,000 (119) 186 (273) 794 70,223
---------- ----- ---- ---- ----- ------ ----------
222,050 1,010 90 247 166 1,513 222,050
---------- ----- ---- ---- ----- ------ ----------
$3,591,994 1,529 90 280 265 3,471 $3,590,687
========== ===== ==== ==== ===== ====== ==========
</TABLE>
<PAGE>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES Exhibit A-3
Consolidating Schedule - Income Information Page 2 of 2
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
American American cations
American Savings AdCom- Savings and
Savings Investment ASB muni Mortgage Elimi-
Bank, Services Service cations, Co., nations Consoli-
F.S.B. Corp. Corporation Inc. Inc. Dr. (Cr.) dated
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Savings bank $269,501 2,175 -- 136 185 595 $271,402
Equity in net income
of subsidiaries 383 -- -- -- -- 383 --
-------- ----- ------ ---- ---- ---- --------
269,884 2,175 -- 136 185 978 271,402
-------- ----- ------ ---- ---- ---- --------
EXPENSES
Savings Bank 230,164 1,468 23 63 223 (595) 231,346
FDIC special assessment 13,835 -- -- -- -- -- 13,835
-------- ----- ------ ---- ---- ---- --------
243,999 1,468 23 63 223 (595) 245,181
-------- ----- ------ ---- ---- ---- --------
OPERATING INCOME (LOSS) 25,885 707 (23) 73 (38) 383 26,221
Income taxes 10,917 304 -- 32 -- -- 11,253
-------- ----- ------ ---- ---- ---- --------
NET INCOME (LOSS) $ 14,968 403 (23) 41 (38) 383 $ 14,968
======== ===== ====== ==== ==== ==== ========
</TABLE>
AMERICAN SAVINGS BANK, F.S.B. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
American American cations
American Savings AdCom- Savings and
Savings Investment ASB muni Mortgage Elimi-
Bank, Services Service cations, Co., nations Consoli-
F.S.B. Corp. Corporation Inc. Inc. Dr. (Cr.) dated
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ 65,178 1,307 (96) 145 (235) 1,121 $ 65,178
Net income (loss) 14,968 403 (23) 41 (38) 383 14,968
Common stock dividends (9,923) (710) -- -- -- (710) (9,923)
-------- ----- ---- ---- ----- ---- --------
Retained earnings (deficit),
end of year $ 70,223 1,000 (119) 186 (273) 794 $ 70,223
======== ===== ==== ==== ===== ==== ========
</TABLE>
<PAGE>
HAWAIIAN TUG & BARGE CORP. AND SUBSIDIARY Exhibit A-4
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
Hawaiian cations
Tug & Young and
Barge Brothers, Eliminations
ASSETS Corp. Limited Dr. (Cr.) Consolidated
- ---------------------------------------- -------- --------- ------------ ------------
<S> <C> <C> <C> <C>
Cash and equivalents $ 761 15 -- $ 776
Notes receivable from affiliated company 10,180 -- (10,180) --
Accounts receivable and unbilled revenues, net 1,254 5,012 (437) 5,829
Inventories, at average cost 160 1,153 -- 1,313
Other investments 2 4 -- 6
Property, plant and equipment, net 10,416 35,308 -- 45,724
Regulatory assets -- 2,424 -- 2,424
Other 1,883 766 -- 2,649
Investment in wholly owned subsidiary, at equity 16,406 -- (16,406) --
-------- --------- ------- ---------
$41,062 44,682 (27,023) $58,721
======== ========= ======= =========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ----------------------------------------
LIABILITIES
Accounts payable $ 785 1,995 437 $ 2,343
Short-term borrowings 568 3,732 -- 4,300
Long-term debt 15,400 10,180 10,180 15,400
Deferred income taxes 1,750 4,285 -- 6,035
Unamortized tax credits 178 1,014 -- 1,192
Other 1,289 7,070 -- 8,359
-------- --------- ------- ---------
19,970 28,276 10,617 37,629
-------- --------- ------- ---------
STOCKHOLDER'S EQUITY
Common stock 13,229 7,414 7,414 13,229
Retained earnings 7,863 8,992 8,992 7,863
-------- --------- ------- ---------
21,092 16,406 16,406 21,092
-------- --------- ------- ---------
$41,062 44,682 27,023 $58,721
======== ========= ======= =========
</TABLE>
<PAGE>
HAWAIIAN TUG & BARGE CORP. AND SUBSIDIARY Exhibit A-4
Consolidating Schedule - Income Information Page 2 of 2
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
Hawaiian cations
Tug & Young and
Barge Brothers, Eliminations
Corp. Limited Dr. (Cr.) Consolidated
-------- --------- ------------ ------------
<S> <C> <C> <C> <C>
REVENUES
Other $ 8,766 43,639 3,657 $48,748
Equity in net income of subsidiary 706 -- 706 --
------- -------- ------- --------
9,472 43,639 4,363 48,748
------- -------- ------- --------
EXPENSES 6,982 41,690 (2,943) 45,729
------- -------- ------- --------
OPERATING INCOME 2,490 1,949 1,420 3,019
Interest expense -- electric utility
and other (1,277) (833) (714) (1,396)
------- -------- ------- --------
INCOME BEFORE INCOME TAXES 1,213 1,116 706 1,623
Income taxes 392 410 -- 802
------- -------- ------- --------
NET INCOME $ 821 706 706 $ 821
======= ======== ======= ========
</TABLE>
HAWAIIAN TUG & BARGE CORP. AND SUBSIDIARY
Consolidating Schedule - Retained Earnings Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
Hawaiian cations
Tug & Young and
Barge Brothers, Eliminations
Corp. Limited Dr. (Cr.) Consolidated
-------- --------- ------------ ------------
<S> <C> <C> <C> <C>
Retained earnings, beginning of year $7,088 8,286 8,286 $7,088
Net income 821 706 706 821
Common stock dividends (46) -- -- (46)
------ ----- ----- ------
Retained earnings, end of year $7,863 8,992 8,992 $7,863
====== ===== ===== ======
</TABLE>
<PAGE>
MALAMA PACIFIC CORP. AND SUBSIDIARIES Exhibit A-5
Consolidating Schedule - Balance Sheet Information (Page 1 of 2) Page 1 of 4
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Malama
Malama Property Malama
Malama Water- Invest- Develop- Malama
Pacific front ment ment Realty
ASSETS Corp. Corp. Corp. Corp. Corp.
- ---------------------------------------- --------- ------ -------- -------- ------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 86 -- -- 215 $--
Notes receivable from
affiliated companies 58,142 -- -- -- 5
Accounts receivable and unbilled
revenues, net 1,782 -- 1 58 --
Real estate developments (367) -- -- 23,987 --
Other investments -- -- -- (48) --
Property, plant and equipment, net 42 -- -- 2 --
Other 7 -- -- 5,915 --
Investment in wholly owned
subsidiaries, at equity (19,132) -- -- -- --
-------- ----- -- ------ ------
$ 40,560 -- 1 30,129 $5
======== ===== == ====== ======
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ---------------------------------------------
LIABILITIES
Accounts payable $ 163 -- -- 1,077 $--
Short-term borrowings 24,614 1,482 -- 23,799 --
Long-term debt -- -- -- 7,954 --
Deferred income taxes 200 21 -- -- --
Other 219 -- -- 40 1
-------- ----- -- ------ ------
25,196 1,503 -- 32,870 1
-------- ----- -- ------ ------
STOCKHOLDER'S EQUITY
Common stock 29,975 616 1 4,501 1
Retained earnings (deficit) (14,611) (2,119) -- (7,242) 3
-------- ----- -- ------ ------
15,364 (1,503) 1 (2,741) 4
-------- ----- -- ------ ------
$ 40,560 -- 1 30,129 $5
======== ===== == ====== ======
</TABLE>
Continued on next page.
<PAGE>
MALAMA PACIFIC CORP. AND SUBSIDIARIES Exhibit A-5
Consolidating Schedule - Balance Sheet Information (Page 2 of 2) Page 2 of 4
December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Reclassifi-
cations
Malama TMG Malama and
Elua Service Mohala Eliminations
ASSETS Corp. Corp. Corp. Dr. (Cr.) Consolidated
- ---------------------------------------- ------- ------- ------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ -- -- 3 -- $ 304
Notes receivable from
affiliated companies -- 2 -- (58,149) --
Accounts receivable and unbilled
revenues, net -- -- 9 (1,758) 92
Real estate developments -- -- 9,590 -- 33,210
Other investments 1,254 -- 10,826 -- 12,032
Property, plant and equipment, net -- -- 3 -- 47
Other -- 45 925 6,892
Investment in wholly owned
subsidiaries, at equity -- -- -- 19,132 --
------ --- ------ ------- --------
$1,254 2 20,476 (39,850) $ 52,577
====== === ====== ======= ========
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ---------------------------------------
LIABILITIES
Accounts payable $ -- -- 55 275 $ 1,020
Short-term borrowings 1,302 -- 36,063 59,629 27,631
Long-term debt -- -- -- -- 7,954
Deferred income taxes -- -- -- -- 221
Other -- -- 127 -- 387
------ --- ------ ------- --------
1,302 -- 36,245 59,904 37,213
------ --- ------ ------- --------
STOCKHOLDER'S EQUITY
Common stock 1 2 1 5,123 29,975
Retained earnings (deficit) (49) -- (15,770) (25,177) (14,611)
------ --- ------ ------- -------
(48) 2 (15,769) (20,054) 15,364
------ --- ------ ------- -------
$1,254 2 20,476 39,850 $ 52,577
====== === ====== ======= ========
</TABLE>
<PAGE>
MALAMA PACIFIC CORP. AND SUBSIDIARIES Exhibit A-5
Consolidating Schedule - Income (Loss) Information Page 3 of 4
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Malama
Malama Property Malama
Malama Water- Invest- Develop- Malama
Pacific front ment ment Realty
Corp. Corp. Corp. Corp. Corp.
------- ------- -------- -------- ------
<S> <C> <C> <C> <C> <C>
REVENUES
Other $ 4,926 -- -- 7,535 $ 7
Equity in net loss of subsidiaries (4,025) -- -- -- --
------- ---- ---- ------ -------
901 -- -- 7,535 7
------- ---- ---- ------ -------
EXPENSES 1,949 -- -- 5,671 3
------- ---- ---- ------ -------
Operating income (loss) (1,048) -- -- 1,864 4
Interest expense (2,050) -- -- (1,884) --
------- ---- ---- ------ -------
Income (loss) before
income tax expense (3,098) -- -- (20) 4
Income taxes 5 -- -- -- 1
------- ---- ---- ------ -------
NET INCOME (LOSS) $(3,103) -- -- (20) $ 3
======= ==== ==== ====== =======
</TABLE>
Continued below.
MALAMA PACIFIC CORP. AND SUBSIDIARIES
Consolidating Schedule - Income (Loss) Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Reclassifi-
cations
Malama TMG Malama and
Elua Service Mohala Eliminations
Corp. Corp. Corp. Dr. (Cr.) Consolidated
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
REVENUES
Other $ -- -- 787 4,818 $ 8,437
Equity in net loss of subsidiaries -- -- -- (4,025) --
------- ---- ----- ------ -------
-- -- 787 793 8,437
------- ---- ----- ------ -------
EXPENSES -- -- 2,585 -- 10,208
------- ---- ----- ------ -------
OPERATING INCOME (LOSS) -- -- (1,798) 793 (1,771)
Interest expense (8) -- (2,202) (4,818) (1,326)
------- ---- ----- ------ -------
Income (loss) before
income tax expense (8) -- (4,000) (4,025) (3,097)
Income taxes -- -- -- -- 6
------- ---- ----- ------ -------
NET INCOME (LOSS) $ (8) -- (4,000) (4,025) $(3,103)
======= ==== ===== ====== =======
</TABLE>
<PAGE>
MALAMA PACIFIC CORP. AND SUBSIDIARIES Exhibit A-5
Consolidating Schedule - Retained Earnings (Deficit) Information Page 4 of 4
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Malama
Malama Property Malama
Malama Water- Invest- Develop- Malama
Pacific front ment ment Realty
Corp. Corp. Corp. Corp. Corp.
-------- ------- -------- ------- ------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $(11,508) (2,119) -- (7,222) $ --
Net income (loss) (3,103) -- -- (20) 3
-------- ------ ----- ------ ------
Retained earnings (deficit), end of year $(14,611) (2,119) -- (7,242) $ 3
======== ====== ===== ====== ======
</TABLE>
Continued below.
MALAMA PACIFIC CORP. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
Reclassifi-
cations
Malama TMG Malama and
Elua Service Mohala Eliminations
Corp. Corp. Corp. Dr. (Cr.) Consolidated
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $(41) -- (11,770) (21,152) $(11,508)
Net income (loss) (8) -- (4,000) (4,025) (3,103)
---- ---- ------- ------- --------
Retained earnings (deficit), end of year $(49) -- (15,770) (25,177) $(14,611)
==== ==== ======= ======= ========
</TABLE>
<PAGE>
HEI POWER CORP. AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Balance Sheet Information Page 1 of 2
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
HEI HEI cations
HEI Power Power and
Power Corp. Corp. Eliminations
ASSETS Corp. Guam International Dr. (Cr.) Consolidated
- ---------------------------------------- ------- ----- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ 65 82 200 -- $ 347
Notes receivable from
affiliated companies 100 -- -- (100) --
Accounts receivable and
unbilled revenues, net 65 615 -- (65) 615
Property, plant and equipment, net 188 59 25 -- 272
Other 18 -- 8 -- 26
Investment in wholly owned
subsidiaries, at equity 463 -- -- (463) --
------- ----- ------ ------- -------
$ 899 756 233 (628) $ 1,260
======= ===== ====== ======= =======
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ---------------------------------------
LIABILITIES
Accounts payable $ 51 65 -- 65 $ 51
Short-term borrowings 4,547 100 -- 100 4,547
Deferred income taxes -- (29) -- -- (29)
Other 237 390 -- -- 627
------- ----- ------ ------- -------
4,835 526 -- 165 5,196
------- ----- ------ ------- -------
STOCKHOLDER'S EQUITY
Common stock 500 168 454 622 500
Retained earnings (deficit) (4,436) 62 (221) (159) (4,436)
------- ----- ------ ------- -------
(3,936) 230 233 463 (3,936)
------- ----- ------ ------- -------
$ 899 756 233 628 $ 1,260
======= ===== ====== ======= =======
</TABLE>
<PAGE>
HEI POWER CORP. AND SUBSIDIARIES Exhibit A-6
Consolidating Schedule - Income (Loss) Information Page 2 of 2
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
HEI HEI cations
HEI Power Power and
Power Corp. Corp. Eliminations
Corp. Guam International Dr. (Cr.) Consolidated
------- ----- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
REVENUES
Other $ 35 314 -- -- $ 349
Equity in net loss of subsidiaries (159) -- -- (159) --
------- ---- ---- ------ -------
(124) 314 -- (159) 349
------- ---- ---- ------ -------
EXPENSES 2,462 217 221 -- 2,900
------- ---- ---- ------ -------
Operating income (loss) (2,586) 97 (221) (159) (2,551)
Interest expense (157) -- -- -- (157)
------- ---- ---- ------ -------
INCOME (LOSS) BEFORE
INCOME TAX EXPENSE (2,743) 97 (221) (159) (2,708)
Income taxes -- 35 -- -- 35
------- ---- ---- ------ -------
NET INCOME (LOSS) $(2,743) 62 (221) (159) $(2,743)
======= ==== ==== ====== =======
</TABLE>
HEI POWER CORP. AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Reclassifi-
HEI HEI cations
HEI Power Power and
Power Corp. Corp. Eliminations
Corp. Guam International Dr. (Cr.) Consolidated
------- ----- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $(1,693) -- -- -- $(1,693)
Net income (loss) (2,743) 62 (221) (159) (2,743)
------- ---- ------- ------ --------
Retained earnings (deficit),
end of year $(4,436) 62 (221) (159) $(4,436)
======= ==== ======= ====== ========
</TABLE>
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-7
Consolidating Schedule - Balance Sheet Information (Page 1 of 2) Page 1 of 4
December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
HEIPC
HEI Lake
Power HEIPC Philippine HEIPC Mainit
Corp. Development, Philippine Power,
ASSETS International LLC Ventures LLC
- ---------------------------------------- ------------- ---------------- ---------- ------
<S> <C> <C> <C> <C>
Cash and equivalents $ -- -- -- $ 200
Notes receivable from affiliated companies -- -- -- --
Accounts receivable and
unbilled revenues, net -- -- -- --
Property, plant and equipment, net -- -- -- 25
Other 2 1 -- 1
Investment in wholly owned
subsidiaries, at equity 231 -- 2 --
----- ----- ----- -----
$ 233 1 2 $ 226
===== ===== ===== =====
LIABILITIES AND
STOCKHOLDER'S EQUITY
- ----------------------------------------
LIABILITIES
Accounts payable $ -- -- -- $ --
Short-term borrowings -- -- -- --
Deferred income taxes -- -- -- --
Unamortized tax credits -- -- -- --
Other -- -- -- --
----- ----- ----- -----
-- -- -- --
----- ----- ----- -----
STOCKHOLDER'S EQUITY
Common stock 454 1 4 447
Retained earnings (deficit) (221) -- (2) (221)
----- ----- ----- -----
233 1 2 226
----- ----- ----- -----
$ 233 1 2 $ 226
===== ===== ===== =====
</TABLE>
Continued on next page.
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-7
Consolidating Schedule - Balance Sheet Information (Page 2 of 2) Page 2 of 4
December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEIPC Reclassifi-
Phnom Penh HEIPC Phnom Penh cations
HEIPC Power Power and
Cambodia (General), (Limited), Eliminations
ASSETS Ventures LLC LLC Dr. (Cr.) Consolidated
- ---------------------------------------- -------- ---------- ---------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Cash and equivalents $ -- -- -- -- $ 200
Notes receivable from
affiliated companies -- -- -- -- --
Accounts receivable and
unbilled revenues, net -- -- -- -- --
Property, plant and equipment, net -- -- -- -- 25
Other -- 2 2 -- 8
Investment in wholly owned
subsidiaries, at equity -- -- -- (233) --
-------- ------ ------- ------- --------
$ -- 2 2 (233) $ 233
======== ====== ======= ======= ========
LIABILITIES AND
STOCKHOLDER'S EQUITY
LIABILITIES
Accounts payable $ -- -- -- -- $ --
Short-term borrowings -- -- -- -- --
Deferred income taxes -- -- -- -- --
Other -- -- -- -- --
-------- ------ ------- ------- --------
-- -- -- -- --
-------- ------ ------- ------- --------
STOCKHOLDER'S EQUITY
Common stock -- 2 2 456 454
Retained earnings (deficit) -- -- -- (223) (221)
-------- ------ ------- ------- --------
-- 2 2 233 233
-------- ------ ------- ------- --------
$ -- 2 2 233 $ 233
======== ====== ======= ======= ========
</TABLE>
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-7
Consolidating Schedule - Income (Loss) Information Page 3 of 4
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
HEIPC
HEI HEIPC Lake
Power Philippine HEIPC Mainit
Corp. Development, Philippine Power,
International LLC Ventures LLC
------------- ------------- ---------- ------
<S> <C> <C> <C> <C>
REVENUES
Other $ -- -- -- $ --
Equity in net loss of subsidiaries (221) -- (2) --
--------- --------- --------- -------
(221) -- (2) --
--------- --------- --------- -------
EXPENSES -- -- -- 221
--------- --------- --------- -------
Operating loss (221) -- (2) (221)
Interest expense -- -- -- --
--------- --------- --------- -------
LOSS BEFORE
INCOME TAX EXPENSE (221) -- (2) (221)
Income taxes -- -- -- --
--------- --------- --------- -------
NET LOSS $ (221) -- (2) $ (221)
========= ========= ========= ========
</TABLE>
Continue below.
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES
Consolidating Schedule - Income (Loss) Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEIPC Reclassifi-
Phnom Penh HEIPC Phnom Penh cations
HEIPC Power Power and
Cambodia (General), (Limited), Eliminations
Ventures LLC LLC Dr. (Cr.) Consolidated
---------- ---------- ---------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
REVENUES
Other $ -- -- -- -- $ --
Equity in net loss of subsidiaries -- -- -- (223) --
---------- --------- ------- -------- ------------
-- -- -- (223) --
---------- --------- ------- -------- ------------
EXPENSES -- -- -- -- 221
---------- --------- ------- -------- ------------
Operating loss -- -- -- (223) (221)
Interest expense -- -- -- -- --
---------- --------- ------- -------- ------------
LOSS BEFORE
INCOME TAX EXPENSE -- -- -- (223) (221)
Income taxes -- -- -- -- --
---------- --------- ------- -------- ------------
NET LOSS $ -- -- -- (223) $ (221)
========== ========= ======= ======== ============
</TABLE>
<PAGE>
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES Exhibit A-7
Consolidating Schedule - Retained Earnings (Deficit) Information Page 4 of 4
Year ended December 31, 1996
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
HEIPC
HEI HEIPC Lake
Power Philippine HEIPC Mainit
Corp. Development, Philippine Power,
International LLC Ventures LLC
------------- ---------------- ---------- -------
<S> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ -- -- -- $ --
Net income (loss) (221) -- (2) (221)
---------- ------- ------ -------
Retained earnings (deficit),
end of year $ (221) -- (2) $ (221)
========== ======= ====== =======
</TABLE>
Continued below.
HEI POWER CORP. INTERNATIONAL AND SUBSIDIARIES
Consolidating Schedule - Retained Earnings (Deficit) Information
Year ended December 31, 1996
(Unaudited)
(in thousands)
(Continued)
<TABLE>
<CAPTION>
HEIPC HEIPC Reclassifi-
Phnom Penh Phnom Penh cations
HEIPC Power Power and
Cambodia (General), (Limited), Eliminations
Ventures LLC LLC Dr. (Cr.) Consolidated
---------- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Retained earnings (deficit),
beginning of year $ -- -- -- -- $ --
Net income (loss) -- -- -- (223) (221)
--------- ------- -------- ------- ----------
Retained earnings (deficit),
end of year $ -- -- -- (223) $ (221)
========= ======= ======== ======= ==========
</TABLE>
<PAGE>
Exhibit B
Page 1 of 1
HAWAIIAN ELECTRIC INDUSTRIES, INC. AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Item No. Year ended December 31, 1996
- -------- ------------------------------------------
<C> <S> <C>
1 Total Assets (at December 31) $5,935,840
2 Total Operating Revenues 1,410,572
3 Net Income 78,658
</TABLE>
HAWAIIAN ELECTRIC COMPANY, INC. AND SUBSIDIARIES
FINANCIAL DATA SCHEDULE
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Item No. Year ended December 31, 1996
- -------- ------------------------------------------------
<C> <S> <C>
1 Total Assets (at December 31) $2,165,546
2 Total Operating Revenues 1,080,868
3 Net Income 81,348
</TABLE>
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