ALLETE, Inc. (NYSE: ALE) today reported first quarter 2010
earnings of 68 cents per share, which compares to 55 cents per
share reported in the first quarter of 2009. Last year’s results
were reduced by $3.2 million after-tax, or 10 cents per share,
representing the 2008 portion of interim rate refunds. Excluding
that charge, earnings per share would have been 65 cents for the
first quarter of 2009.
ALLETE’s net income was $23.0 million on total operating revenue
of $233.6 million in the first quarter of 2010. In the same period
a year ago, net income was $16.9 million on total operating revenue
of $199.6 million.
Regulated Operations earned $24.9 million in the first quarter
of 2010, compared with $17.7 million in the first quarter a
year ago. The period-over-period increase includes the impact of
the aforementioned $3.2 million charge, Minnesota Public Utilities
Commission-approved interim rates, new FERC-approved rates, and
increased transmission related margins. These increases were
significantly offset by higher operating, depreciation, and income
tax expenses. Income tax expense included a $3.6 million charge
resulting from the Patient Protection and Affordable Care Act of
2010. Earnings from ALLETE’s investment in the American
Transmission Company rose by $0.3 million from the same period a
year ago.
“We’ve continued to make significant capital expenditures,
including those for mandated environmental improvements and
renewable energy additions,” said ALLETE President Alan R. Hodnik.
“However, because interim rates are substantially below our
requested levels, this year we do not anticipate Minnesota Power
will earn the return on equity that has been authorized by the
MPUC.”
ALLETE Chairman Don Shippar, who is retiring as CEO effective
April 30, said the company was encouraged by indications that the
economic outlook is brightening.
“It’s good news for northern Minnesota and the whole region to
have its major industry – taconite mining – enjoy increasing
production levels,” Shippar said. “Prospects for this industry are
clearly better than they were a year ago.”
The Investments and Other segment recorded a net loss of $1.9
million during the quarter, compared with a net loss of $0.8
million in 2009. Results in 2010 included a slightly larger net
loss at ALLETE Properties than the year before, and a $0.4 million
charge related to the Patient Protection and Affordable Care
Act.
The average number of shares outstanding of ALLETE common stock
increased year-over-year as the company continued to fund its
capital investments, resulting in dilution of six cents per
share.
Hodnik added that ALLETE’s earnings guidance for 2010 remains
unchanged at $2.05 to $2.35 per share, and provides for a
range of potential regulatory outcomes. The earnings guidance
excludes the impact of the non-recurring 12 cents per share charge
resulting from the Patient Protection and Affordable Care Act.
ALLETE's corporate headquarters are located in Duluth,
Minnesota. ALLETE provides energy services in the upper Midwest and
has real estate holdings in Florida. More information about the
company is available on ALLETE's Web site at www.allete.com.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
ALLETE’s press releases and other communications may include
certain non-Generally Accepted Accounting Principles
(GAAP) financial measures. A “non-GAAP financial measure” is
defined as a numerical measure of a company’s financial
performance, financial position or cash flows that excludes (or
includes) amounts that are included in (or excluded from) the most
directly comparable measure calculated and presented in accordance
with GAAP in the company’s financial statements.
Non-GAAP financial measures utilized by the Company include
presentations of earnings (loss) per share. ALLETE’s
management believes that these non-GAAP financial measures provide
useful information to investors by removing the effect of variances
in GAAP reported results of operations that are not indicative of
changes in the fundamental earnings power of the Company’s
operations. Management believes that the presentation of the
non-GAAP financial measures is appropriate and enables investors
and analysts to more accurately compare the company’s ongoing
financial performance over the periods presented.
ALLETE, Inc.
Consolidated Statement of Income
Millions Except Per Share Amounts
– Unaudited
Quarter Ended March 31, 2010
2009 Operating Revenue Operating Revenue $233.6
$204.9 Prior Year Rate Refunds – (5.3) Total
Operating Revenue 233.6 199.6
Operating
Expenses Fuel and Purchased Power 79.8 72.8 Operating and
Maintenance 87.7 80.5 Depreciation 20.0 15.2 Total
Operating Expenses 187.5 168.5
Operating
Income 46.1 31.1
Other Income (Expense)
Interest Expense (8.9) (8.7) Equity Earnings in ATC 4.5 4.2
Other
1.0 1.1 Total Other Income (Expense) (3.4)
(3.4)
Income Before Non-Controlling Interest and
Income Taxes 42.7 27.7
Income Tax Expense 19.9
10.8
Net Income $22.8 $16.9 Less:
Non-Controlling Interest in Subsidiaries (0.2) –
Net Income Attributable to ALLETE $23.0 $16.9
Average Shares of Common Stock Basic 33.8 30.9
Diluted 33.8 31.0
Basic and Diluted
Earnings Per Share of Common Stock $0.68 $0.55
Dividends Per Share of Common Stock
$0.44 $0.44
Consolidated Balance
Sheet
Millions – Unaudited
Mar. 31, Dec. 31,
Mar. 31, Dec. 31,
2010 2009
2010 2009 Assets Liabilities and
Shareholders' Equity Cash and Short-Term Investments $32.5
$25.7 Current Liabilities
$108.6
$133.1
Other Current Assets 190.1 199.8 Long-Term Debt 710.1 695.8
Property, Plant and Equipment 1,649.1 1,622.7 Other Liabilities
373.6 372.1 Investment in ATC 90.3 88.4 Deferred Income Taxes &
Investment Tax Credits 266.5 253.1 Investments 132.6 130.5
Shareholders' Equity 957.2 939.0 Other 321.4 326.0
Total
Assets $2,416.0 $2,393.1
Total Liabilities and Shareholders' Equity $2,416.0
$2,393.1
Quarter
Ended March 31, ALLETE, Inc. 2010
2009 Income (Loss)
Millions Regulated Operations $24.9 $17.7 Investments and Other
(1.9) (0.8) Net Income Attributable to ALLETE
$23.0 $16.9
Diluted Earnings Per Share $0.68 $0.55
Statistical Data Corporate Common Stock High $34.00
$33.27 Low $29.99 $23.35 Close $33.48 $26.69 Book Value $26.74
$25.59
Kilowatt-hours Sold Millions Regulated Utility
Retail and Municipals Residential 357 375 Commercial 372 379
Municipals 265 265 Industrial 1,429 1,323 Total
Retail and Municipal 2,423 2,342 Other Power Suppliers 803
916 Total Regulated Utility 3,226 3,258 Non-regulated Energy
Operations 33 57 Total Kilowatt-hours Sold
3,259 3,315
This exhibit has been furnished and shall not be deemed
“filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, nor shall it be deemed incorporated by reference in
any filing under the Securities Act of 1933, except as shall be
expressly set forth by specific reference in such filing.
Allete (NYSE:ALE)
Historical Stock Chart
From Sep 2024 to Oct 2024
Allete (NYSE:ALE)
Historical Stock Chart
From Oct 2023 to Oct 2024