A strong foundation. A solid future.
A strong foundation. A solid future.
Investment opportunity in a diverse mix of energy businesses and geography
Recent acquisitions in the United Kingdom and Kentucky have made PPL Corporation one of the fastest growing investor-owned companies in the U.S. utility sector. Our electricity distribution companies in the United States -- PPL Electric Utilities, Louisville Gas & Electric and Kentucky Utilities -- and our Western Power Distribution affiliate in the U.K. deliver award-winning energy services to more than 10 million customers. The vastly expanded WPD now serves 7.8 million customers across England and Wales. In addition to operating outstanding energy delivery companies, PPL Corporation owns or controls 11,000 megawatts of competitive electricity generation in the northeastern and northwestern United States, and 8,000 megawatts of regulated electricity generation in Kentucky. PPL companies operate these generating plants responsibly, efficiently and reliably. This diverse mix of businesses and geography represents an excellent opportunity for utility sector investors.
PPL has produced results for investors: consistently solid earnings and payment of dividends for more than 260 consecutive quarters.
Solid total return, stability for shareowners
PPL’s total shareowner return (common stock price appreciation plus reinvested dividends) was 17.5 percent in 2011. That return significantly outperformed the Standard & Poor’s 500 Index for 2011. A 2.9 percent increase in our common stock dividend early in 2012 was the seventh increase in the past eight years, bringing it to $1.44 per share on an annualized basis.
Our recent transformational acquisitions in Kentucky and the United Kingdom have moved PPL toward an emphasis on stable rate-regulated earnings. This shift enhances PPL’s earnings forecasts, dividends and credit ratings. The combination of growth prospects in our rate-regulated businesses and the diversity of our competitive generation fleet afford our Board of Directors and our management a diversified foundation for potentially growing the dividend in the future.
Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP) in the U.S. Earnings from ongoing operations is a non-GAAP financial measure that is adjusted for special items. Special items include acquisition-related costs and the impact of energy-related economic activity (principally changes in fair value of economic hedges and the ineffective portion of qualifying cash flow hedges), as well as other impacts.
“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that “earnings from ongoing operations,” although a non-GAAP financial measure, is also useful and meaningful to investors because it provides management’s view of PPL’s fundamental earnings performance as another criterion in making investment decisions. PPL’s management also uses “earnings from ongoing operations” in measuring certain corporate performance goals. Other companies may use different measures to present financial performance.
“Earnings from ongoing operations” is adjusted for the impact of special items. Special items include:
- Energy-related economic activity (as discussed below).
- Foreign currency-related economic hedges.
- Gains and losses on sales of assets not in the ordinary course of business.
- Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust funds).
- Workforce reduction and other restructuring impacts.
- Acquisition-related costs and charges.
- Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations.
For more information, contact PPL Investor Services at 1-800-345-3085.