ALLETE, Inc. (NYSE:ALE) today reported third quarter 2012
earnings of 78 cents per share on net income of $29.4 million and
operating revenue of $248.8 million, compared to 57 cents on net
income of $20.5 million and operating revenue of $226.9 million in
the third quarter a year ago.
ALLETE benefited from increased energy sales, higher current
cost recovery rider revenue and renewable energy tax credits
associated with its expanding renewable wind generation
portfolio.
“We’re pleased to report a strong third quarter that positions
ALLETE to meet its financial targets as we approach year-end,” said
ALLETE Chairman, President and CEO Al Hodnik. He said the company
has narrowed its earnings guidance range and now expects to finish
2012 with earnings of between $2.50 and $2.60 per share.
ALLETE’s Regulated Operations segment, which includes
Minnesota Power, Superior Water, Light & Power and the
company’s investment in the American Transmission Company, recorded
net income of $29.3 million compared to $23.8 million in the third
quarter of 2011. Electric sales to retail and municipal customers
were up 3.8 percent compared to the year-ago period.
Sales to Minnesota Power’s industrial customers in 2012 were up
3.5 percent compared to a year ago as the company’s taconite
customers continue to produce at near full-capacity levels.
Operating and maintenance, depreciation and interest expense
increased from the year-ago period.
ALLETE’s Investments and Other segment had net income of
$0.1 million in the third quarter, compared to a loss of $3.3
million recorded in 2011. The difference was due primarily to lower
state income tax expense.
Quarterly earnings were diluted by four cents per share due to
issuances of common shares needed to fund major capital
improvements.
“We expect our energy sales to continue to be strong as the
regional economy trends in a positive direction,” Hodnik said.
“Going forward, potential new industrial customers remain on track
with several major projects, we plan to make investments in a major
transmission line and an environmental retrofit, and we are close
to completion of our Bison 2 and 3 wind energy installations.”
ALLETE will host a conference call and webcast at 10 a.m.
Eastern time today to discuss details of its quarterly financial
performance. 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 3, 2012 by calling
(855) 859-2056, pass code 36343856.
ALLETE, Inc. is an energy company headquartered in Duluth, Minn.
ALLETE's energy businesses include Minnesota Power, Superior Water,
Light & Power Co., BNI Coal and ALLETE Clean Energy. 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
IncomeMillions Except Per Share Amounts – Unaudited
Quarter Ended Nine Months Ended
September 30, September 30,
2012 2011 2012
2011 Operating Revenue $248.8
$226.9 $705.2 $689.0
Operating
Expenses Fuel and Purchased Power 79.5 74.8 228.7 229.8
Operating and Maintenance 98.7 90.5 294.8 276.3 Depreciation
25.0 22.7 74.4 67.1 Total Operating
Expenses 203.2 188.0 597.9 573.2
Operating Income
45.6 38.9 107.3 115.8
Other Income (Expense) Interest Expense (12.3) (10.9) (33.4)
(32.6) Equity Earnings in ATC 4.9 4.7 14.3 13.7 Other
1.5 0.5 3.4 2.3 Total Other Expense
(5.9) (5.7) (15.7) (16.6)
Income Before Non-Controlling Interest and Income Taxes 39.7
33.2 91.6 99.2
Income Tax Expense 10.3
12.7 23.4 24.7
Net Income 29.4
20.5 68.2 74.5 Less: Non-Controlling Interest
in Subsidiaries — — — (0.2)
Net Income Attributable to ALLETE $29.4
$20.5 $68.2 $74.7
Average Shares of Common
Stock Basic 37.7 35.6 37.3 35.1 Diluted 37.8
35.7 37.3 35.2
Basic Earnings Per
Share of Common Stock $0.78 $0.57 $1.83 $2.13
Diluted
Earnings Per Share of Common Stock $0.78 $0.57 $1.83 $2.12
Dividends Per Share of Common Stock
$0.46 $0.445 $1.38 $1.335
Consolidated Balance SheetMillions –
Unaudited
Sep. 30,
Dec. 31, Sep. 30, Dec. 31,
2012 2011
2012 2011 Assets Liabilities and
Shareholders' Equity Cash and Short-Term Investments $104.3
$101.1 Current Liabilities $214.8 $163.1 Other Current Assets 173.7
175.9 Long-Term Debt 947.6 857.9 Property, Plant and Equipment
2,239.9 1,982.7 Deferred Income Taxes 400.0 373.6 Regulatory Assets
334.6 345.9 Regulatory Liabilities 54.8 43.5 Investment in ATC
105.5 98.9
Defined Benefit Pension & Other
Postretirement Benefit Plans
254.0 253.5 Investments 139.7 132.3 Other Liabilities 109.4 105.1
Other 40.4 39.2 Shareholders’
Equity 1,157.5 1,079.3
Total Assets
$3,138.1 $2,876.0
Total Liabilities
and Shareholders’ Equity $3,138.1 $2,876.0
Quarter Ended Nine Months Ended
ALLETE, Inc. September 30, September 30,
Income (Loss) 2012 2011
2012 2011 Millions
Regulated Operations $29.3 $23.8 $68.1 $80.5 Investments and Other
0.1 (3.3) 0.1 (5.8) Net Income
Attributable to ALLETE $29.4 $20.5
$68.2 $74.7
Diluted Earnings Per Share
$0.78 $0.57 $1.83 $2.12
Statistical
Data
Corporate Common Stock High $42.66 $42.10 $42.66 $42.10 Low
$40.33 $35.51 $38.03 $35.51 Close $41.74 $36.63 $41.74 $36.63 Book
Value $29.80 $28.56 $29.80 $28.56
Kilowatt-hours Sold
Millions Regulated Utility Retail and Municipals Residential 276
265 828 865 Commercial 393 369 1,084 1,074 Municipals 261 257 759
757 Industrial 1,915 1,851 5,624
5,470 Total Retail and Municipal 2,845 2,742 8,295 8,166 Other
Power Suppliers 478 537 1,487
1,690 Total Regulated Utility 3,323 3,279 9,782 9,856 Non-regulated
Energy Operations 25 23 81 74
Total Kilowatt-hours Sold 3,348 3,302
9,863 9,930
Regulated Utility Revenue
Millions
Regulated Utility Revenue Retail and Municipals Residential $26.5
$24.5 $76.4 $82.5 Commercial 30.6 27.6 82.5 83.1 Municipals 18.5
19.1 49.7 51.7 Industrial 102.1 97.2
293.4 291.3 Total Retail and Municipals 177.7 168.4 502.0
508.6 Other Power Suppliers 18.1 19.8 54.5 60.1 Other
30.6 19.2 85.5 63.5 Total Regulated Utility
Revenue $226.4 $207.4 $642.0
$632.2
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