ALLETE, Inc. (NYSE:ALE) today reported first quarter 2013
earnings of 83 cents per share on net income of $32.5 million and
operating revenue of $263.8 million, compared to 66 cents on net
income of $24.4 million and operating revenue of $240 million in
2012.
ALLETE's Regulated Operations segment, which includes Minnesota
Power, Superior Water, Light and Power and the company's investment
in the American Transmission Company, recorded net income of $32.1
million versus $24.4 million in 2012.
Higher cost recovery rider revenue and federal production tax
credits were tied to the company's strategic move toward adding
more renewable wind energy. In late 2012, Minnesota Power completed
two phases of the Bison Wind Energy Center and both were in service
for the first quarter of 2013. Increases in depreciation and
interest expense, both directly attributable to Minnesota Power's
recent capital investments, were in line with the company's
expectations.
This year's first quarter saw a return to more normal winter
weather conditions, increasing sales to residential, commercial,
and municipal customers. The company's industrial customers
continued to produce at near full-capacity levels; total electric
sales were up about three percent compared to last year. Earnings
from ALLETE's investment in the American Transmission Company grew
slightly due to a higher investment balance compared to a year
ago.
ALLETE's Investments and Other segment, which includes BNI Coal,
ALLETE Properties, ALLETE Clean Energy, and other miscellaneous
corporate income and expense, recorded $400,000 of net income
during the quarter, versus a break-even quarter a year ago.
An increase in the average number of common shares outstanding
in 2013 from a year ago, with proceeds used to fund the company's
capital investment program, resulted in dilution of five cents per
share compared to the first quarter of 2012.
“Our first quarter financial results were consistent with our
expectations,” said ALLETE Chairman, President and CEO Al Hodnik.
“Electricity demand remains strong with our customers, and we
continue to make progress in executing our multi-faceted,
multi-year growth strategy.” Hodnik reaffirmed ALLETE's 2013
earnings guidance of between $2.58 and $2.78 per share.
The company's reiterated earnings guidance assumes continued
strong industrial demand, higher cost recovery revenue and federal
production tax credits, higher depreciation and interest expense
and dilution from equity issuances of between ten cents and 15
cents per share.
The company will host a conference call and webcast at 10 a.m.
Eastern time today to discuss details of its quarterly 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 May 10, 2013 by dialing (855) 859-2056, pass
code 31733644.
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 BNI Coal in
Center, N.D., ALLETE Clean Energy, based in Duluth, and has an
eight percent equity interest in the American Transmission Co. More
information about ALLETE 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
March 31, 2013
2012 Operating Revenue $ 263.8
$ 240.0
Operating
Expenses Fuel and Purchased Power 86.5 77.1 Operating and
Maintenance 104.7 99.9 Depreciation 28.2
24.6 Total Operating Expenses
219.4 201.6
Operating Income
44.4 38.4
Other Income
(Expense) Interest Expense (12.3 ) (11.0 ) Equity Earnings in
ATC 5.2 4.6 Other 2.7
0.7 Total Other Expense (4.4 )
(5.7 )
Income Before Income
Taxes 40.0 32.7
Income Tax Expense
7.5 8.3
Net Income
$ 32.5 $ 24.4
Average
Shares of Common Stock Basic 38.9 36.8 Diluted
39.0 36.9
Basic
Earnings Per Share of Common Stock $ 0.83 $ 0.66
Diluted
Earnings Per Share of Common Stock $ 0.83 $ 0.66
Dividends Per Share of Common Stock $ 0.475
$ 0.46
Consolidated
Balance Sheet
Millions - Unaudited
Mar. 31, Dec. 31,
Mar. 31, Dec. 31,
2013 2012
2013 2012
Assets Liabilities and Shareholders’ Equity Cash and
Short-Term Investments $ 77.3 $ 80.8 Current Liabilities $ 202.6 $
283.4 Other Current Assets 178.6 192.4 Long-Term Debt 975.1 933.6
Property, Plant and Equipment - 2,366.7 2,347.6 Deferred Income
Taxes 430.9 423.8 Net Regulatory Assets 336.6 340.3 Regulatory
Liabilities 59.2 60.1 Investment in ATC 109.0 107.3 Defined Benefit
Pension & Other 216.3 228.2 Postretirement Benefit Plans Other
Investments 138.6 143.5 Other Non-Current Liabilities 126.7 123.3
Other Non-Current Assets 44.5 41.5
Shareholders’ Equity
1,240.5 1,201.0
Total Assets
$ 3,251.3 $ 3,253.4
Total
Liabilities and Shareholders’ Equity $ 3,251.3
$ 3,253.4
Quarter Ended
ALLETE, Inc. March 31, Income (Loss)
2013 2012 Millions
Regulated Operations $ 32.1 $ 24.4 Investments and
Other 0.4 -
Net Income Attributable to ALLETE $
32.5 $ 24.4
Diluted Earnings Per Share
$ 0.83 $ 0.66
Statistical Data
Corporate Common Stock High $ 49.50 $ 42.49 Low $
41.39 $ 39.98 Close $ 49.02 $ 41.49 Book Value $ 31.07 $ 29.20
Kilowatt-hours Sold
Millions Regulated Utility Retail and
Municipals Residential 354 326 Commercial 377 364 Municipals 274
264 Industrial 1,845
1,868 Total Retail and Municipal 2,850 2,822 Other
Power Suppliers 591
517 Total Regulated Utility 3,441 3,339 Non-regulated
Energy Operations 31
30 Total Kilowatt-hours Sold
3,472 3,369
Regulated
Utility Revenue
Millions Regulated Utility Revenue Retail and
Municipals Residential $ 33.1 $ 29.5 Commercial 31.3 29.0
Municipals 16.5 15.5 Industrial
102.2 97.8 Total Retail and Municipals 183.1
171.8 Other Power Suppliers 22.3 18.7 Other
36.0 28.1 Total Regulated
Utility Revenue $ 241.4 $
218.6
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.
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