ALLETE, Inc. Reports Third Quarter Earnings of 57 Cents Per Share
November 02 2011 - 8:30AM
Business Wire
ALLETE (NYSE: ALE) today reported third quarter 2011 earnings of
57 cents per share on net income of $20.5 million and revenue of
$226.9 million. In the same period a year ago, ALLETE earned 56
cents per share on net income of $19.6 million and revenue of
$224.1 million.
Quarterly net income from ALLETE’s Regulated Operations segment
improved about eight percent from $22.1 million in 2010 to $23.8
million in 2011, primarily due to an increase in industrial
electric sales and higher current cost recovery revenue at
Minnesota Power compared to last year. The additional revenue was
partially offset by increased expense for depreciation, interest
and property taxes related to recent capital investments.
“Our quarterly and year-to-date financial results reflect strong
production levels from our large industrial customers,” said ALLETE
Chairman, President and CEO Alan R. Hodnik. “These customers expect
to operate at near full-production levels for the remainder of the
year. Looking ahead, we are particularly encouraged by new
industrial customer activity that signals growth in our region for
the future.”
The Investments and Other segment recorded a net loss of $3.3
million compared to a net loss of $2.5 million in 2010. Results for
the quarter included increased operating and maintenance and state
tax expenses. Earnings at BNI Coal were similar to the same period
a year ago, and ALLETE Properties recorded a smaller net loss than
in the third quarter of 2010.
Quarterly earnings were diluted by two cents per share because
of a higher common share balance from the funding of major capital
improvements.
Hodnik said that ALLETE now expects to finish 2011 with earnings
in the higher end of a range between $2.40 and $2.60 per share,
excluding a one-time eight cent per share income tax benefit
recorded in the second quarter.
The company will host a conference call and webcast at 10:00
a.m. Eastern time today to discuss details of its performance for
the quarter. Interested parties may listen live by calling (877)
303-5852, or by accessing the webcast at www.allete.com. A replay
of the call will be available through November 5, 2011 by dialing
(800) 585-8367, pass code 15710427.
ALLETE’s corporate headquarters are in Duluth, Minn. In addition
to its electric utilities, Minnesota Power and Superior Water,
Light & Power Co. of Wisconsin, ALLETE owns BNI Coal in Center,
N.D., ALLETE Clean Energy, also based in Duluth, and has an eight
percent equity interest in the American Transmission Co. More
information about the company is available 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 Nine Months Ended September 30,
September 30, 2011
2010 2011 2010
Operating Revenue $226.9 $224.1
$689.0 $668.9
Operating Expenses Fuel and Purchased Power 74.8 79.0 229.8
233.1 Operating and Maintenance 90.5 89.8 276.3 262.9 Depreciation
22.7 20.0 67.1
59.8 Total Operating Expenses 188.0 188.8 573.2 555.8
Operating Income 38.9
35.3 115.8 113.1
Other
Income (Expense) Interest Expense (10.9 ) (9.7 ) (32.6 ) (28.1
) Equity Earnings in ATC 4.7 4.5 13.7 13.4 Other 0.5
0.6 2.3 3.8 Total
Other Expense (5.7 ) (4.6 ) (16.6 )
(10.9 )
Income Before Non-Controlling Interest and
Income Taxes 33.2 30.7 99.2 102.2
Income Tax Expense
12.7 11.2 24.7
40.5
Net Income 20.5
19.5 74.5 61.7 Less:
Non-Controlling Interest in Subsidiaries —
(0.1 ) (0.2 ) (0.3 )
Net Income
Attributable to ALLETE $20.5 $19.6
$74.7 $62.0
Average
Shares of Common Stock Basic 35.6 34.4 35.1 34.1 Diluted
35.7 34.5 35.2
34.2
Basic Earnings Per Share of Common Stock
$0.57 $0.57 $2.13 $1.82
Diluted Earnings Per Share of Common
Stock $0.57 $0.56 $2.12 $1.81
Dividends Per Share of
Common Stock $0.445 $0.44
$1.335 $1.32
Consolidated Balance Sheet
Millions - Unaudited
Sept. 30, Dec. 31,
Sept. 30, Dec. 31, 2011
2010 2011
2010 Assets Liabilities and Shareholders'
Equity Cash and Short-Term Investments $135.1 $51.6 Current
Liabilities $122.0 $158.9 Other Current Assets 167.7 188.1
Long-Term Debt 844.4 771.6 Property, Plant and Equipment 1,902.1
1,805.6 Deferred Income Taxes 373.0 325.2 Regulatory Assets 286.9
310.2 Regulatory Liabilities 44.6 43.6 Investment in ATC 97.9 93.3
Defined Benefit Pension & Other Postretirement Benefit Plans
217.1 231.4 Investments 129.5 126.0 Other Liabilities 101.9 93.4
Other 35.2 34.3 Shareholders' Equity
1,051.4 985.0
Total Assets $2,754.4
$2,609.1
Total Liabilities and
Shareholders' Equity $2,754.4 $2,609.1
Quarter Ended Year to
Date September 30, September 30, ALLETE,
Inc. 2011 2010 2011
2010 Income (Loss) Millions Regulated Operations
$23.8 $22.1 $80.5 $65.2 Investments and Other (3.3 )
(2.5 ) (5.8 ) (3.2 ) Net Income
Attributable to ALLETE $20.5 $19.6
$74.7 $62.0
Statistical Data Corporate Common Stock High $42.10 $37.75
$42.10 $37.87 Low $35.51 $33.16 $35.51 $29.99 Close $36.63 $36.43
$36.63 $36.43 Book Value $28.56 $27.23 $28.56 $27.23
Kilowatt-hours Sold Millions Regulated Utility Retail and
Municipals Residential 265 262 865 847 Commercial 369 374 1,074
1,074 Municipals 257 253 757 746 Industrial 1,851
1,799 5,470 4,956
Total Retail and Municipal 2,742 2,688 8,166 7,623 Other
Power Suppliers 537 629
1,690 2,168 Total Regulated Utility
3,279 3,317 9,856 9,791 Non-regulated Energy Operations
23 27 74 87
Total Kilowatt-hours Sold 3,302
3,344 9,930 9,878
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