ALLETE, Inc. (NYSE:ALE) today reported 2010 earnings of $2.19
per share, a 16 percent increase over the $1.89 per share recorded
in 2009. ALLETE’s net income in 2010 was $75.3 million on total
operating revenue of $907 million, compared to $61 million of net
income and revenue of $759.1 million in 2009. Excluding a
nonrecurring 12 cent charge as a result of the Patient Protection
and Affordable Care Act, ALLETE’s pro forma earnings were $2.31 per
share in 2010. 2009 results included a 15 cent per share
nonrecurring charge.
“Improved power sales to our taconite customers was a reflection
of a healthier economy and positively impacted our earnings for the
year,” said ALLETE President and CEO Al Hodnik. “Megawatt-hour
sales to these customers increased by 104 percent from 2009 to
2010.”
Income from Regulated Operations rose to $79.8 million
during 2010 from $65.9 million in the previous year. The results
reflected the stronger megawatt-hour sales combined with interim
rate increases for Minnesota Power retail customers, and increased
transmission-related margins. These increases were significantly
offset by higher operating and maintenance, depreciation, interest
and income tax expenses.
The Investments and Other segment recorded a net loss of
$4.5 million during the year compared to a net loss of $4.9 million
in 2009.
An increase in the average number of common shares outstanding,
with issuance proceeds used to fund the company’s capital
expenditure program, had a dilutive impact of 14 cents per share in
2010.
Hodnik said the company expects to earn between $2.35 and $2.55
in 2011. The company recently increased its quarterly dividend to
44.5 cents per share.
“We anticipate building upon our strengths in 2011 and beyond,
to the benefit of our customers and shareholders, as the overall
economy improves and we continue to make capital investments in
renewable and transmission assets,” Hodnik said.
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 year. 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 20, 2011 by dialing
(800) 642-1687, pass code 38206714.
ALLETE’s corporate headquarters are in Duluth, Minnesota. In
addition to its electric utilities, Minnesota Power in northeast
Minnesota and Superior, Water, Light & Power Co. in northwest
Wisconsin, ALLETE owns BNI Coal in Center, N. D. and has an eight
percent equity interest in American Transmission Co. 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.
Consolidated Statement
of Income For the Periods Ended December 31, 2010 and
2009
Millions Except Per Share Amounts
Quarter Ended Year to Date
2010
2009 2010
2009 Operating Revenue
Operating Revenue $ 238.1 $ 216.0 $ 907.0 $
766.7 Prior Year Rate Refunds –
– –
(7.6 ) Total Operating Revenue
238.1 216.0
907.0 759.1
Operating Expenses Fuel and Purchased Power 92.0 80.1 325.1
279.5 Operating and Maintenance 102.7 84.2 365.6 308.9
Depreciation 20.7
17.9 80.5
64.7 Total Operating Expenses
215.4 182.2
771.2 653.1
Operating
Income 22.7
33.8 135.8
106.0
Other Income (Expense) Interest Expense (11.1 )
(8.4 ) (39.2 ) (33.8 ) Equity Earnings in ATC 4.5 4.6 17.9 17.5
Other 0.8
(2.0 ) 4.6 1.8
Total Other Income (Expense)
(5.8 ) (5.8 )
(16.7 ) (14.5 )
Income Before
Non-Controlling Interest and Income Taxes 16.9 28.0 119.1 91.5
Income Tax Expense 3.8
9.3 44.3
30.8
Net Income
13.1 18.7
74.8 60.7 Less:
Non-Controlling Interest in Subsidiaries (0.2
) – (0.5 )
(0.3 )
Net Income Attributable to ALLETE
$ 13.3 $ 18.7
$ 75.3 $ 61.0
Average
Shares of Common Stock Basic 34.5 33.4 34.2 32.2 Diluted
34.7 33.5
34.3 32.2
Basic Earnings Per Share of Common Stock $ 0.38 $
0.56 $ 2.20 $ 1.89
Diluted Earnings Per Share of Common
Stock 0.38
0.56 2.19
1.89
Dividends Per Share of Common
Stock $ 0.44 $ 0.44
$ 1.76 $ 1.76
Consolidated Balance Sheet
Millions
Dec. 31, Dec. 31, Dec. 31 Dec.
31, 2010
2009
2010 2009 Assets
Liabilities and Equity Cash and Short-Term Investments $
51.6 $ 25.7 Current Liabilities $ 158.9 $ 133.1 Other Current
Assets 188.1 199.8 Long-Term Debt 771.6 695.8 Property, Plant and
Equipment 1,805.6 1,622.7 Other Liabilities 324.8 325.0 Regulatory
Assets 310.2 293.2 Regulatory Liabilities 43.6 47.1 Investment in
ATC 93.3 88.4 Deferred Income Taxes 325.2 253.1 Investments 126.0
130.5 Equity 985.0 939.0 Other 34.3
32.8
Total Assets $ 2,609.1
$ 2,393.1
Total Liabilities
and Equity $ 2,609.1 $ 2,393.1
Quarter Ended Year to Date ALLETE, Inc.
December 31, December 31, Income (Loss)
2010
2009
2010 2009
Millions Regulated
Operations $ 14.6 $ 20.9 $ 79.8 $ 65.9 Investments and Other
(1.3 )
(2.2 ) (4.5 )
(4.9 ) Net Income Attributable to ALLETE
$ 13.3 $
18.7 $ 75.3
$ 61.0
Diluted Earnings Per Share $ 0.38 $ 0.56 $
2.19 $ 1.89
Statistical Data Corporate Common Stock High $
37.95 $ 35.29 $ 37.95 $ 35.29 Low $ 34.81 $ 32.23 $ 29.99 $ 23.35
Close $ 37.26 $ 32.68 $ 37.26 $ 32.68 Book Value $ 27.19 $ 26.39 $
27.19 $ 26.39
Kilowatt-hours Sold Millions Regulated Utility
Retail and Municipals Residential 303 308 1,150 1,164 Commercial
359 358 1,433 1,420 Municipals 260 262 1,006 992 Industrial
1,848
1,294 6,804
4,475
Total Retail and Municipal
2,770 2,222 10,393 8,051 Other Power Suppliers
577 981
2,745
4,056 Total Regulated Utility 3,347 3,203
13,138 12,107 Non-regulated Energy Operations
31 41
118
203 Total Kilowatt-hours Sold
3,378 3,244
13,256
12,310
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