10-Q 1 d10q.txt FORM 10-Q FOR PERIOD ENDED 09/30/2001 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2001 HAWAIIAN ELECTRIC INDUSTRIES CAPITAL TRUST I (Exact Name of Registrant as Specified in Its Certificate of Trust) Commission File Number: 1-8503-01 Delaware 52-6829385 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) c/o The Bank of New York, 101 Barclay Street, 21st Floor, New York, NY 10286 (212) 815-5084 Attention: Corporate Trust Trustee Administration (Address, including zip code, and telephone number, including area code, of principal executive offices) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered ------------------- ----------------------------------------- 8.36% Trust Originated Preferred New York Stock Exchange Securities (TOPrS)(and the related guarantee of Hawaiian Electric Industries, Inc.) Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ____ ____ As of September 30, 2001, no common securities of the Registrant were held by nonaffiliates of the Registrant. ================================================================================ Hawaiian Electric Industries Capital Trust I Form 10-Q--Quarter ended September 30, 2001 INDEX

ii PART I - FINANCIAL INFORMATION -------------------------------------------------------------------------------- Item 1. Financial statements ----------------------------- Hawaiian Electric Industries Capital Trust I Balance sheets (unaudited)

Hawaiian Electric Industries Capital Trust I Statements of earnings (unaudited)

Note: Hawaiian Electric Industries, Inc. owns all of Hawaiian Electric Industries Capital Trust I's common securities. Therefore, per share data is not meaningful. See accompanying notes to financial statements. 1 Hawaiian Electric Industries Capital Trust I Statements of changes in stockholders' equity (unaudited)

Hawaiian Electric Industries Capital Trust I Statements of cash flows (unaudited)

See accompanying notes to financial statements. 2 Hawaiian Electric Industries Capital Trust I NOTES TO FINANCIAL STATEMENTS (Unaudited) -------------------------------------------------------------------------------- (1) Basis of presentation ------------------------- The accompanying unaudited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Securities and Exchange Commission (SEC) Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes thereto in the Annual Report of Hawaiian Electric Industries Capital Trust I (the Trust) on SEC Form 10-K for the year ended December 31, 2000. In the opinion of the management of the Trust, the accompanying unaudited financial statements contain all material adjustments required by GAAP to present fairly the Trust's financial position as of September 30, 2001 and December 31, 2000, the results of its operations for the three and nine months ended September 30, 2001 and 2000 and its cash flows for the nine months ended September 30, 2001 and 2000. All such adjustments are of a normal recurring nature unless otherwise disclosed in this Form 10-Q or other referenced material. Item 2. Management's discussion and analysis of financial condition and results ------------------------------------------------------------------------------- of operations ------------- The Trust is a statutory business trust formed under the Delaware Business Trust Act, as amended, pursuant to a trust agreement and a certificate of trust filed with the Secretary of State of Delaware on December 19, 1996. The Trust Agreement was subsequently amended by an amended and restated trust agreement dated as of February 1, 1997. The Trust exists for the exclusive purposes of (i) issuing trust securities (the Trust Securities), consisting of 8.36% Trust Originated Preferred Securities (the Trust Preferred Securities) and trust common securities (the Trust Common Securities), representing undivided beneficial ownership interests in the assets of the Trust, (ii) investing the gross proceeds of the Trust Securities in 8.36% Partnership Preferred Securities (the Partnership Preferred Securities) issued by HEI Preferred Funding, LP (the Partnership), and (iii) engaging in only those other activities necessary or incidental thereto. The Trust has no employees. The Registrant's activities are limited to issuing securities and investing the proceeds as described above. Since the Trust was organized on December 19, 1996, its activities, as specified in its declaration of trust, have been limited to the issuance of the Trust Preferred Securities and the Trust Common Securities, the investing of the proceeds in the Partnership Preferred Securities, and the payment of distributions on the Trust Preferred Securities and the Trust Common Securities in accordance with their terms. All of the foregoing activities of the Trust occurred in or after February 1997. All expenses of organizing the Trust, carrying out the issuance of its securities, and conducting its limited activities have been borne by Hawaiian Electric Industries, Inc. (the Company), either directly or through Hycap Management, Inc. (Hycap), its wholly owned subsidiary. The Partnership is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act, as amended, pursuant to an agreement of limited partnership and the filing of a certificate of limited partnership with the Secretary of State of Delaware on December 23, 1996, which was subsequently amended by an amended and restated agreement of limited partnership dated as of February 1, 1997. Hycap is the sole general partner of the Partnership. The Partnership is managed by the general partner and exists for the exclusive purposes of 3 (a) purchasing certain eligible debt instruments of the Company and the wholly owned subsidiaries of the Company (collectively, the Affiliate Investment Instruments) and certain U.S. government obligations and commercial paper of unaffiliated entities (Eligible Debt Securities) with the proceeds from (i) the sale of its Partnership Preferred Securities, representing limited partner interests in the Partnership, to the Trust and (ii) a capital contribution in exchange for the general partner interest in the Partnership, (b) receiving interest and other payments on the Affiliate Investment Instruments and the Eligible Debt Securities held by the Partnership from time to time, (c) making distributions on the Partnership Preferred Securities and distributions on the general partner interest in the Partnership if, as, and when declared by the general partner in its sole discretion, (d) subject to the restrictions and conditions contained in the agreement of limited partnership, making additional investments in Affiliate Investment Instruments and Eligible Debt Securities and disposing of any such investments, and (e) except as otherwise limited in the agreement of limited partnership, entering into, making and performing all contracts and other undertakings, and engaging in those activities and transactions as the general partner deems necessary or advisable for carrying out the purposes of the Partnership. Since the Partnership was organized on December 23, 1996, its activities, as specified in its agreement of limited partnership, have been limited to the issuance of the Partnership Preferred Securities, the receipt of a capital contribution from Hycap, as general partner, the investment of the proceeds from the sale of the Partnership Preferred Securities and the general partner interest in the Affiliate Investment Instruments and Eligible Debt Securities, and the payment of distributions on the Partnership Preferred Securities. For information about the Company (Commission File Number 1-8503), refer to the Company's periodic reports filed from time to time under the Securities and Exchange Act of 1934. Item 3. Quantitative and qualitative disclosures about market risk ------------------------------------------------------------------ In February 1997, the Trust invested the gross proceeds from the sale of the Trust Preferred Securities and the Trust Common Securities in the Partnership Preferred Securities. This investment is accounted for under the equity method. The Partnership, in turn, invested the proceeds from the sale of the Partnership Preferred Securities and a capital contribution from Hycap in the Affiliate Investment Instruments and Eligible Debt Securities. To the extent the Partnership has funds available from the Affiliate Investment Instruments and Eligible Debt Securities, the general partner of the Partnership may declare distributions to the Trust, as holder of the Partnership Preferred Securities. The Trust's ability to pay distributions to the holders of the Trust Preferred Securities is dependent on its receipt of distributions on the Partnership Preferred Securities from the Partnership. The Partnership distributions are in turn dependent on the receipt of payments from the Affiliate Investment Instruments and Eligible Debt Securities. The principal risk to the Trust is thus the credit risk associated with the Affiliate Investment Instruments. 4 PART II - OTHER INFORMATION -------------------------------------------------------------------------------- Item 1. Legal proceedings ------------------------- The Registrant knows of no material legal proceedings involving the Trust or its assets. Item 6. Exhibits and reports on Form 8-K ---------------------------------------- (a) Exhibits Exhibit 12 Computation of ratio of earnings to combined fixed charges and preferred securities distributions for the nine months ended September 30, 2001 and 2000 (b) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on the 7th day of November, 2001. HAWAIIAN ELECTRIC INDUSTRIES CAPITAL TRUST I * By: /s/ Robert F. Mougeot ------------------------------------ Name: Robert F. Mougeot Title: Regular Trustee By: /s/ Suzy A. P. Hollinger ------------------------------------ Name: Suzy A. P. Hollinger Title: Regular Trustee * There is no principal executive officer, principal financial officer, controller, principal accounting officer or board of directors of the Registrant. The Trustees of the Registrant (which include the Regular Trustees, the Property Trustee and the Delaware Trustee) together exercise all powers and perform all functions with respect to the Registrant. 5

HAWAIIAN ELECTRIC INDUSTRIES CAPITAL TRUST I 10-Q