Core Viewpoint - Spire Global Inc is under investigation for possible securities fraud following a significant drop in its stock price after announcing a delay in its 10-Q filing [1][3]. Group 1: Company Performance - On August 14, 2024, Spire's shares fell by 17% after the company notified the SEC about the late filing of its 10-Q for the quarter ended June 30 [3]. - The company also announced that it would reschedule its 2Q results conference call, with the timing to be confirmed once the filing date is established [3]. Group 2: Legal Actions - The Portnoy Law Firm has initiated an investigation into Spire Global Inc and may file a class action on behalf of investors who have incurred losses [1]. - Investors are encouraged to contact the law firm for a complimentary case evaluation and to discuss their legal rights regarding potential claims [2][4].

Core Viewpoint - Spire Inc. reported a narrower loss in Q3 fiscal 2024 compared to the previous year, driven by strong performance across its segments despite a slight decline in total revenues [1][2][3]. Financial Performance - The company reported a loss of 14 cents per share, better than the Zacks Consensus Estimate of a loss of 18 cents [1]. - Total revenues for the quarter were $414.1 million, missing the Zacks Consensus Estimate of $415 million by 0.3% and down 1.2% from $419 million in the prior-year quarter [3]. - Total operating expenses decreased by 5.7% to $383.4 million from $406.5 million in the prior-year period [4]. - Operating income increased significantly by 155.8% to $30.7 million from $12 million in the prior-year quarter [4]. - Net interest expenses rose by 4.5% year over year to $48.8 million [4]. Segment Performance - Gas Utility segment reported a net economic loss of $11 million, an improvement from a loss of $12.3 million in the prior-year quarter [5]. - Gas Marketing segment achieved net economic earnings of $1 million, recovering from a loss of $2.5 million in the prior-year period due to improved transportation margins [5]. - Midstream segment reported net economic earnings of $13.9 million, up from $3.6 million in the year-ago period, driven by higher storage earnings and new contracts [6]. - Other activities reported a loss of $8.2 million, slightly worse than a loss of $7.4 million in the prior-year quarter [6]. Guidance and Future Outlook - Spire lowered its fiscal 2024 net economic earnings guidance to a range of $4.15-$4.25 per share from the previous range of $4.25-$4.45, citing adverse weather conditions and increased expenses [8]. - The Zacks Consensus Estimate for fiscal 2024 earnings is $4.32 per share, which is above the company's revised guidance [8]. - The company plans capital investments of $7.3 billion through 2033, expecting an annual rate-based growth of 7-8% [9]. - Fiscal 2024 capital expenditure guidance was raised from $800 million to $830 million due to increased deployment of advanced meters [9].

Financial Data and Key Metrics Changes - The company reported a net economic earnings loss of $0.14 per share for Q3 2024, an improvement from a loss of $0.42 per share in the same quarter last year, reflecting better results across all business segments [5][17] - The expected earnings for the fiscal year have been adjusted to a range of $4.15 to $4.25 per share, down from previous guidance due to headwinds from lower margins and higher interest rates [6][23] Business Line Data and Key Metrics Changes - Utility earnings improved to a loss of $11 million, which is $1.3 million better than the previous year, driven by new rates but offset by higher depreciation and bad debt expenses [17] - The gas marketing segment saw an increase of $3.5 million due to improved transportation margins [17] - The midstream business posted higher results due to additional storage capacity and new rates, benefiting from increased demand [18] Market Data and Key Metrics Changes - In Missouri, 25 publicly announced economic projects are expected to bring nearly $3.5 billion in investment and create over 3,500 jobs [7] - Alabama reported 184 wins in new and existing projects, resulting in over 8,000 jobs and $6.4 billion in investment [7] Company Strategy and Development Direction - The company is focused on cost management and operational efficiency to lower overall costs for customers, with significant benefits expected in fiscal years 2025 and 2026 [5][6] - A long-term strategy includes attracting new businesses through economic development, emphasizing the importance of reliable and affordable energy [7][8] - The company is committed to sustainability, as highlighted in its sixth sustainability report, which covers environmental, safety, people, and governance priorities [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from warm winter weather and higher interest rates impacting margins, particularly in Missouri [6][21] - Despite challenges, management remains confident in returning to normal margins and achieving long-term growth targets of 5% to 7% in net economic earnings per share [23] Other Important Information - The company has launched a customer affordability initiative aimed at improving operational efficiency and reducing costs, which includes workforce reductions and streamlining processes [12][13] - Capital expenditures for the first nine months of fiscal 2024 totaled $631 million, with a focus on modernizing infrastructure [14][15] Q&A Session Summary Question: What is the potential magnitude of benefits from cost efforts? - Management indicated that while some benefits will be realized in 2024, the focus is on achieving more significant savings in 2025 and 2026 through comprehensive cost management initiatives [27][28] Question: How do you expect 2025 growth to trend? - Management targets the midpoint of the 5% to 7% growth range for 2025, but acknowledges the need to assess the timing of cost savings and regulatory impacts [30][34] Question: Can you elaborate on the growth drivers in the marketing business? - The marketing business growth is driven by gaining customers and contracts, with expectations for continued growth in a stable market environment [47][48]

Financial Performance - Q3 FY24 net economic loss was $0.14 per share, an improvement of $0.28 compared to last year[25] - The company lowered its FY24 guidance range to $4.15 - $4.25[25] - Net economic earnings increased by $14.3 million, reflecting growth in all businesses[28] - Gas Marketing increased $3.5 million due to improved transportation margins[28] Capital Expenditure and Investment - YTD Q3 FY24 capital expenditure reached $631 million[8] - The company is executing a robust capital expenditure plan, driven by Gas Utility investment, including $83 million of new business[12] - The 10-year capital expenditure plan remains at $7.3 billion[12] - FY24 capital expenditure target raised to $830 million driven by utility meter spend[27] - Midstream capital expenditure remains at $140 million driven by the Spire Storage West expansion[27] Gas Utility - Spire Missouri approved annual ISRS revenues of $36.9 million and filed for an additional $17.7 million in July 2024[26] - Gas Utility capital expenditure is driven by safety and reliability (75%), customer expansion (16%), and other factors (9%)[13]

FORM 10-Q (Mark One) | --- | --- | --- | --- | |------------------------|---------------------------------------------------------------------------------|------------------------|---------------------------------------| | Commission File Number | Name of Registrant, Address of Principal Executive Offices and Telephone Number | State of Incorporation | I.R.S. Employer Identification Number | | 1-16681 | Spire Inc. 700 Market Street St. Louis, MO 63101 314-342-0500 | Missouri | 74-2976504 | | 1-1822 | Spire ...

Company Performance - Spire reported a quarterly loss of $0.14 per share, better than the Zacks Consensus Estimate of a loss of $0.18, and an improvement from a loss of $0.42 per share a year ago, resulting in an earnings surprise of 22.22% [1] - The company posted revenues of $414.1 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.32%, and down from $418.5 million year-over-year [2] - Over the last four quarters, Spire has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Future Outlook - The current consensus EPS estimate for the coming quarter is -$0.32 on revenues of $332.5 million, and for the current fiscal year, it is $4.32 on revenues of $2.63 billion [8] - The estimate revisions trend for Spire is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call [3] Industry Context - The Utility - Gas Distribution industry, to which Spire belongs, is currently in the top 14% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Spire's performance [6]

[Overview of Fiscal 2024 Third Quarter Results](index=1&type=section&id=Overview%20of%20Fiscal%202024%20Third%20Quarter%20Results) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) For Q3 FY2024, Spire reported reduced net and net economic losses across all segments, though full-year net economic earnings guidance was lowered, while nine-month consolidated net income and net economic earnings increased year-over-year Q3 FY2024 Key Financial Metrics (in Millions, except per share data) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Loss | $(12.6)M | $(21.6)M | Improved | | Diluted Loss Per Share | $(0.28) | $(0.48) | Improved | | Net Economic Loss (NEE)* | $(4.3)M | $(18.6)M | Improved | | NEE Per Share* | $(0.14) | $(0.42) | Improved | - Fiscal 2024 net economic earnings (NEE) guidance was lowered to a range of **$4.15–$4.25 per share**, down from the previous range of **$4.25–$4.45 per share**[24](index=24&type=chunk)[35](index=35&type=chunk) Nine Months FY2024 Key Financial Metrics (in Millions, except per share data) | Metric | Nine Months 2024 | Nine Months 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $276.8M | $248.6M | +11.3% | | Diluted EPS | $4.76 | $4.51 | +5.5% | | Net Economic Earnings (NEE)* | $275.0M | $265.7M | +3.5% | | NEE Per Share* | $4.73 | $4.83 | -2.1% | [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted improved Q3 results and a new customer affordability initiative, but full-year guidance was lowered as the initiative's benefits will not fully offset earlier fiscal year challenges - A customer affordability initiative was launched to lower the overall cost structure and improve operational efficiency, with benefits expected to be realized in 2025 and 2026[10](index=10&type=chunk)[16](index=16&type=chunk) - The reduction in FY2024 guidance is attributed to the inability of the new initiative's benefits to fully offset the impacts of lower Spire Missouri margin and higher interest expenses experienced earlier in the year[16](index=16&type=chunk) [Segment Performance Analysis](index=1&type=section&id=Segment%20Performance%20Analysis) [Third Quarter Results (Three Months Ended June 30)](index=1&type=section&id=Third%20Quarter%20Results%20(Three%20Months%20Ended%20June%2030)) In Q3, Spire's net economic loss narrowed to $4.3 million from $18.6 million year-over-year, reflecting improved performance across all segments, with Gas Utility loss decreasing, Gas Marketing turning profitable, and Midstream earnings growing significantly Q3 Net Economic Earnings (Loss) by Segment (in Millions) | Segment | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Gas Utility | $(11.0) | $(12.3) | | Gas Marketing | $1.0 | $(2.5) | | Midstream | $13.9 | $3.6 | | Other | $(8.2) | $(7.4) | | **Total** | **$(4.3)** | **$(18.6)** | [Gas Utility](index=2&type=section&id=Gas%20Utility) - The Gas Utility segment's net economic loss improved to **$11.0 million** from **$12.3 million** year-over-year, primarily due to new rates at Spire Alabama and increased usage, which were partially offset by higher depreciation and bad debt expenses[18](index=18&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk) - Operation and maintenance expenses were impacted by a **$4.4 million** charge related to the new customer affordability initiative[12](index=12&type=chunk) [Gas Marketing](index=2&type=section&id=Gas%20Marketing) - The Gas Marketing segment reported NEE of **$1.0 million**, a significant improvement from an NEE loss of **$2.5 million** in the prior year, driven by asset optimization that resulted in improved transportation margins[19](index=19&type=chunk) [Midstream](index=2&type=section&id=Midstream) - The Midstream segment's NEE grew substantially to **$13.9 million** from **$3.6 million** year-over-year. This was driven by higher storage earnings from additional capacity, new contracts at higher rates, and the inclusion of the MoGas and Salt Plains acquisitions[39](index=39&type=chunk) [Other](index=2&type=section&id=Other) - Other activities reported a slightly larger NEE loss of **$8.2 million** compared to **$7.4 million** in the prior year, as **$3.4 million** in higher interest expense was mostly offset by lower corporate costs[40](index=40&type=chunk) [Year-to-Date Results (Nine Months Ended June 30)](index=3&type=section&id=Year-to-Date%20Results%20(Nine%20Months%20Ended%20June%2030)) For the first nine months of FY2024, net economic earnings increased to $275.0 million from $265.7 million year-over-year, driven by Gas Utility and Midstream growth, partially offset by a decline in Gas Marketing earnings Nine Months Net Economic Earnings by Segment (in Millions) | Segment | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | | Gas Utility | $252.8 | $234.5 | | Gas Marketing | $23.7 | $45.0 | | Midstream | $20.1 | $11.6 | | Other | $(21.6) | $(25.4) | | **Total** | **$275.0** | **$265.7** | [Gas Utility](index=3&type=section&id=Gas%20Utility_YTD) - Gas Utility NEE grew due to new rates, but results were tempered by lower weather-driven usage in Missouri, as well as higher interest, bad debt, and depreciation costs[41](index=41&type=chunk) [Gas Marketing](index=3&type=section&id=Gas%20Marketing_YTD) - Gas Marketing NEE was significantly lower than the prior year because the highly favorable market conditions experienced during Winter 2023 did not repeat[22](index=22&type=chunk) [Midstream](index=3&type=section&id=Midstream_YTD) - Midstream NEE improved due to higher storage earnings from additional capacity and new contracts, along with the inclusion of MoGas and Salt Plains results[42](index=42&type=chunk) [Other](index=3&type=section&id=Other_YTD) - The loss from other activities narrowed, reflecting the settlement of an interest rate hedge and lower corporate costs, which more than offset higher interest expense[23](index=23&type=chunk) [Guidance and Outlook](index=3&type=section&id=Guidance%20and%20Outlook) [Guidance and Outlook](index=3&type=section&id=Guidance%20and%20Outlook_child) Spire lowered its fiscal 2024 NEE per share guidance due to year-to-date headwinds, yet maintains long-term growth targets supported by an increased capital expenditure forecast for fiscal 2024 FY2024 NEE Guidance per Share (in Dollars) | Guidance | Amount | | :--- | :--- | | Prior Range | $4.25 - $4.45 | | New Range | $4.15 - $4.25 | - The company remains confident in its long-term NEE per share growth target of **5-7%**, driven by an expected **7-8%** annual utility rate base growth[7](index=7&type=chunk) - The capital expenditure forecast for fiscal 2024 has been increased from **$800 million** to **$830 million**, primarily for increased deployment of advanced meters[44](index=44&type=chunk) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Information) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast%20Information_child) Spire held a conference call and webcast on July 31, 2024, to discuss its fiscal 2024 third-quarter results, with replay details provided until August 31, 2024 - The conference call was held on Wednesday, July 31, at **8 a.m. CT (9 a.m. ET)**[25](index=25&type=chunk)[26](index=26&type=chunk)[45](index=45&type=chunk) - A replay of the call is available through **August 31, 2024**, with access code **2598655**[46](index=46&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures_child) The report uses non-GAAP measures like Net Economic Earnings (NEE) and Contribution Margin, which exclude specific adjustments and non-recurring items to offer a clearer view of ongoing operational performance - Net economic earnings (NEE) is a non-GAAP measure that excludes items such as fair value and timing adjustments, acquisition and restructuring costs, and other unusual items from GAAP net income[8](index=8&type=chunk)[17](index=17&type=chunk) - Contribution margin is a non-GAAP measure that adjusts revenues by removing costs that are directly passed on to customers, specifically the wholesale cost of natural gas and gross receipts taxes[8](index=8&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the nine months ended June 30, 2024, Spire's operating revenues slightly decreased to $2.30 billion, but reduced natural gas costs led to increased operating income of $468.5 million and net income of $276.8 million, or $4.76 per diluted share Nine Months Ended June 30 (in Millions, except per share data) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Operating Revenues | $2,299.2 | $2,355.9 | | Total Operating Expenses | $1,830.7 | $1,933.4 | | Operating Income | $468.5 | $422.5 | | Net Income | $276.8 | $248.6 | | Diluted Earnings Per Share | $4.76 | $4.51 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, Spire's total assets increased to $10.71 billion from $10.31 billion at fiscal year-end 2023, primarily due to growth in Net Utility Plant and total shareholders' equity reaching $3.33 billion Balance Sheet Highlights (in Millions) | Account | June 30, 2024 | Sept 30, 2023 | | :--- | :--- | :--- | | Total Assets | $10,710.9 | $10,313.6 | | Total Current Liabilities | $1,709.8 | $1,755.4 | | Long-term debt | $3,422.3 | $3,554.0 | | Total Shareholders' Equity | $3,333.2 | $2,917.3 | | Total Capitalization and Liabilities | $10,710.9 | $10,313.6 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2024, net cash from operating activities significantly increased to $829.5 million, while cash used in investing activities rose, and financing activities resulted in a net cash outflow of $19.6 million Cash Flow Summary - Nine Months Ended June 30 (in Millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $829.5 | $404.1 | | Net cash used in investing activities | $(802.0) | $(516.4) | | Net cash (used in) provided by financing activities | $(19.6) | $116.8 | | Net Increase in Cash | $7.9 | $4.5 | [Reconciliation of Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Net Economic Earnings and Reconciliation to GAAP](index=9&type=section&id=Net%20Economic%20Earnings%20and%20Reconciliation%20to%20GAAP) This section reconciles GAAP Net Income (Loss) to Net Economic Earnings (NEE) for both three-month and nine-month periods, showing Q3 2024 GAAP net loss of $12.6 million adjusted to an NEE loss of $4.3 million, and nine-month GAAP net income of $276.8 million adjusted to an NEE of $275.0 million Q3 2024 Reconciliation: GAAP Net Loss to NEE (in Millions) | Description | Amount | | :--- | :--- | | **Net Loss [GAAP]** | **$(12.6)** | | Fair value and timing adjustments, pre-tax | $6.2 | | Acquisition and restructuring activities, pre-tax | $4.8 | | Income tax effect of adjustments | $(2.7) | | **Net Economic Loss [Non-GAAP]** | **$(4.3)** | Nine Months 2024 Reconciliation: GAAP Net Income to NEE (in Millions) | Description | Amount | | :--- | :--- | | **Net Income [GAAP]** | **$276.8** | | Fair value and timing adjustments, pre-tax | $(9.2) | | Acquisition and restructuring activities, pre-tax | $6.7 | | Income tax effect of adjustments | $0.7 | | **Net Economic Earnings [Non-GAAP]** | **$275.0** | [Contribution Margin and Reconciliation to GAAP](index=10&type=section&id=Contribution%20Margin%20and%20Reconciliation%20to%20GAAP) This section details the calculation of the non-GAAP Contribution Margin by adjusting GAAP Operating Income for specific operating expenses and natural gas costs, resulting in a consolidated Contribution Margin of $1.137 billion for the nine months ended June 30, 2024 - For the three months ended June 30, 2024, the consolidated Contribution Margin was **$250.8 million**, reconciled from a GAAP Operating Income of **$30.7 million**[53](index=53&type=chunk) - For the nine months ended June 30, 2024, the consolidated Contribution Margin was **$1,137.0 million**, reconciled from a GAAP Operating Income of **$468.5 million**[53](index=53&type=chunk)

NEE excludes from net income, as applicable, the impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as impairments and certain regulatory, legislative, or GAAP standard-setting actions. Midstream NEE improved driven by higher storage earnings, reflecting the additional capacity and new contracts at higher rates, ...

At Spire Inc. (NYSE: SR) we believe energy exists to help make people's lives better. It's a simple idea, but one that's at the heart of our company. Every day we serve 1.7 million homes and businesses making us one of the largest publicly traded natural gas companies in the country. We help families and business owners fuel their daily lives through our gas utilities serving Alabama, Mississippi and Missouri. Our natural gas-related businesses include Spire Marketing and Spire Midstream. We are committed t ...

Group 1 - Spire Inc. will host a conference call and webcast on July 31, 2024, to discuss its fiscal 2024 third quarter results [1] - The call is scheduled for 8 a.m. CT (9 a.m. ET) and will be accessible via specific phone numbers for U.S., Canada, and international participants [2] - A replay of the call will be available from 10 a.m. CT on July 31 until August 31, 2024, with specific access codes provided for different regions [3] Group 2 - Spire Inc. serves 1.7 million homes and businesses, making it one of the largest publicly traded natural gas companies in the U.S. [4] - The company operates gas utilities in Alabama, Mississippi, and Missouri, and is involved in natural gas-related businesses such as Spire Marketing and Spire Midstream [4] - Spire Inc. is focused on organic growth, infrastructure investment, and innovation to transform its business [4]