ALLETE, Inc. (NYSE: ALE) today reported 2015 earnings of $2.92
per share on net income of $141.1 million and operating
revenue of $1.49 billion. Earnings for 2014 were $2.90 per share on
net income of $124.8 million and operating revenue of $1.14
billion.
Included in 2015 results are a $20.4 million, or 42 cents per
share, profit on the construction and sale of a wind energy
facility by ALLETE Clean Energy, a $22.3 million, or 46 cents per
share, non-cash impairment charge at ALLETE Properties, and
$4.8 million, or 10 cents per share, of acquisition
transaction fees related to ALLETE’s Energy Infrastructure and
Related Services businesses. Earnings in 2014 included $1.4
million, or 3 cents per share, of acquisition transaction fees, and
a $2.5 million, or 6 cents per share, charge associated with
an Environmental Protection Agency (EPA) settlement.
ALLETE finished within its November 2015 earnings guidance of
$3.35 to $3.50 per share which did not include impacts of the
impairment charge or acquisition transaction fees. ALLETE also
finished within its original December 2014 guidance of $3.00 to
$3.20 per share which did not include the impacts of the impairment
charge, acquisition transaction fees, or profit on the construction
and sale of the wind energy facility.
“We are proud of our financial and operational accomplishments
in 2015, especially when considering the challenges that came at us
on many fronts. Our broadened energy businesses are well positioned
for success in 2016 and beyond,” said ALLETE Chairman, President
and CEO Al Hodnik. “ALLETE’s value proposition remains intact and
our 2015 financial results are a good example of how our operating
businesses support ALLETE’s mission and how management deals with
economic challenges and delivers on shareholder value.”
ALLETE announced a dividend increase of 6 cents per share on an
annual basis on January 22, 2016, the sixth consecutive year ALLETE
has increased its dividend. ALLETE has paid dividends without
interruption since 1948.
ALLETE’s Regulated Operations segment, which includes Minnesota
Power, Superior Water, Light and Power, and the Company’s
investment in the American Transmission Co. (ATC), recorded net
income of $131.6 million, an increase of $8.6 million over
2014 net income. Earnings increased primarily due to higher cost
recovery rider revenue, production tax credits, power marketing
sales, and lower operating and maintenance expenses. These
increases were partially offset by lower industrial sales and
higher depreciation, interest and property tax expense. In
addition, Minnesota Power recorded a reserve in 2015 for estimated
refunds of $1.6 million after-tax related to Midwest Independent
System Operator return on equity complaints, of which $0.9 million
after-tax was attributable to prior years. In 2015, our equity
earnings in ATC also reflected a $3.0 million after-tax charge
related to the same complaints, of which $1.4 million after-tax was
attributable to prior years. In 2014, results included a
$2.5 million after-tax charge related to a settlement
agreement with the EPA.
ALLETE’s Energy Infrastructure and Related Services businesses,
which include ALLETE Clean Energy and U.S. Water Services, recorded
net income of $29.9 million and $0.9 million, respectively.
Earnings at ALLETE Clean Energy increased due to higher earnings
from its growing portfolio of wind energy facilities, and $20.4
million of profit earned on the construction and sale of the wind
energy facility. Earnings at U.S. Water Services reflect the
results for the year with ALLETE’s acquisition of the company on
February 10, 2015, which included $2.2 million of after-tax expense
related to purchase accounting for inventories and sales
backlog.
The Corporate and Other segment, which includes BNI Energy and
ALLETE Properties, posted a net loss of $21.3 million in 2015,
compared to a net loss of $1.5 million in 2014. The net loss for
2015 included the $22.3 million after-tax non-cash impairment
charge on ALLETE Properties real estate assets, and a $3.0 million
after-tax expense, or 6 cents per share, for acquisition costs
related to the acquisition of U.S. Water Services.
Earnings per share for 2015 were diluted by 36 cents due to
additional shares of common stock outstanding as of
December 31, 2015.
ALLETE will host a conference call and webcast at 10 a.m.
Eastern Time this morning to discuss details of its 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 February 21, 2016 by calling
(855) 859-2056, pass code 26012875. The webcast will be accessible
for one year at www.allete.com.
ALLETE is an energy company headquartered in Duluth,
Minn. In addition to its electric utilities, Minnesota
Power and Superior Water, Light and
Power of Wisconsin, ALLETE owns ALLETE Clean
Energy, based in Duluth, U.S. Water Services headquartered
in St. Michael, Minn., BNI Energy in Center, N.D.,
and has an eight percent equity interest in the American
Transmission Co. More information about ALLETE is
available at www.allete.com.
ALE-CORP
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
For the Periods Ended December 31, 2015
and 2014
Millions Except Per Share Amounts
Quarter Ended Year to Date
2015 2014
2015 2014 Operating
Revenue $380.6 $290.7
$1,486.4 $1,136.8
Operating Expenses
Fuel and Purchased Power 85.2 87.4 328.1 356.1 Transmission
Services 14.0 12.4 54.1 45.6 Cost of Sales 69.0 18.7 302.3 77.9
Operating and Maintenance 87.1 72.8 333.5 287.1 Depreciation and
Amortization 46.5 36.2 170.0 135.7 Taxes Other than Income Taxes
12.9 11.7 51.4 45.6 Impairment of Real Estate 36.3
— 36.3 — Total
Operating Expenses 351.0 239.2 1,275.7 948.0
Operating
Income 29.6 51.5
210.7 188.8
Other Income (Expense)
Interest Expense (15.9 ) (15.3 ) (64.9 ) (54.8 ) Equity Earnings in
ATC 2.2 4.0 16.3 19.6 Other 1.2 2.6
4.7 8.6 Total Other Expense
(12.5 ) (8.7 ) (43.9 ) (26.6 )
Income Before Income Taxes 17.1 42.8 166.8 162.2
Income
Tax Expense (Benefit) (1.7 ) 9.6
25.3 36.7
Net Income
18.8 33.2 141.5
125.5 Less: Non-Controlling Interest in Subsidiaries
0.5 0.3 0.4 0.7
Net Income Attributable to ALLETE $18.3
$32.9 $141.1 $124.8
Average Shares of Common Stock Basic 49.0 45.2 48.3
42.9 Diluted 49.1 45.4
48.4 43.1
Basic Earnings Per Share of
Common Stock $0.37 $0.73 $2.92 $2.91
Diluted Earnings Per
Share of Common Stock $0.37 $0.73 $2.92 $2.90
Dividends Per
Share of Common Stock $0.505 $0.49
$2.02 $1.96
Consolidated Balance Sheet
Millions
Dec. 31, Dec. 31, Dec. 31, Dec.
31, 2015 2014
2015
2014 Assets Liabilities and Shareholders'
Equity Cash and Cash Equivalents $97.0 $145.8 Current
Liabilities $275.4 $416.0 Other Current Assets 274.0 273.0
Long-Term Debt 1,568.7 1,272.8 Property, Plant and Equipment - Net
3,669.1 3,284.8 Deferred Income Taxes 579.8 510.7 Regulatory Assets
372.0 357.3 Regulatory Liabilities 105.0 94.2 Investment in ATC
124.5 121.1 Defined Benefit Pension & Other Postretirement
Benefit Plans 206.8 190.9 Other Investments 74.6 114.4 Other
Non-Current Liabilities 349.0 265.0 Goodwill and Intangibles - Net
215.2 4.8 Shareholders' Equity 1,822.4 1,611.2 Other Non-Current
Assets 80.7 59.6
Total Assets
$4,907.1 $4,360.8
Total Liabilities and Shareholders' Equity
$4,907.1 $4,360.8
Quarter Ended Year to Date ALLETE, Inc.
December 31, December 31, Income (Loss)
2015 2014 2015
2014 Millions Regulated Operations
$23.5 $31.4 $131.6 $123.0 Energy Infrastructure and Related
Services ALLETE Clean Energy 11.2 2.1 29.9 3.3 U.S. Water Services
(0.6 ) —
0.9
— Corporate and Other (15.8 ) (0.6 )
(21.3 ) (1.5 ) Net Income Attributable to
ALLETE $18.3 $32.9
$141.1 $124.8
Diluted Earnings Per
Share $0.37 $0.73
$2.92 $2.90
Statistical Data
Corporate Common Stock High $52.90
$57.97 $59.73 $57.97 Low $47.93 $44.19 $45.29 $44.19 Close $50.83
$55.14 $50.83 $55.14 Book Value $37.18 $35.04 $37.18 $35.04
Kilowatt-hours Sold
Millions Regulated
Utility Retail and Municipal Residential 280 313 1,113 1,204
Commercial 356 371 1,462 1,468 Municipal 204 221 833 864 Industrial
1,572 1,972 6,635
7,487 Total Retail and Municipal 2,412 2,877
10,043 11,023 Other Power Suppliers 1,254
822 4,310 2,904
Total Regulated Utility 3,666 3,699
14,353 13,927
Regulated Utility Revenue
Millions Regulated
Operations Retail and Municipal Residential $28.9 $32.2 $115.2
$124.6 Commercial 33.1 33.9 132.9 134.8 Municipal 15.0 14.8 61.9
60.4 Industrial 103.7 118.1
424.4 455.7 Total Retail and
Municipal 180.7 199.0 734.4 775.5 Other Power Suppliers 43.9 30.6
154.7 115.5 Other 23.6 24.3
102.1 112.5 Total Regulated
Utility Revenue $248.2 $253.9
$991.2 $1,003.5
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version on businesswire.com: http://www.businesswire.com/news/home/20160218005296/en/
ALLETE, Inc.Investor Contact:Vince Meyer,
218-723-3952vmeyer@allete.com
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