ALLETE, Inc. (NYSE: ALE) today reported third quarter 2017
earnings of 88 cents per share on net income of $44.9 million
and operating revenue of $362.5 million. Last year’s results were
81 cents per share on net income of $40.3 million and
operating revenue of $349.6 million. Results for the third quarter
of 2017 reflect a favorable impact of approximately $8 million
after-tax, or 16 cents per share, for the modification of a
November 2016 Minnesota Public Utilities Commission (MPUC) order on
the allocation of North Dakota investment tax credits at a MPUC
hearing on September 28, 2017. Net income in the third quarter of
2016 included an adverse impact of approximately $9 million
after-tax, or 18 cents per share, for the initial MPUC
decision in October 2016. Net income in 2016 also included
approximately $3 million after-tax, or 7 cent per share, gain for
the sale of ALLETE Properties’ Ormond Crossings project and Lake
Swamp mitigation bank.
“We remain on track to meet our full-year earnings targets,”
said ALLETE Chairman, President and CEO Al Hodnik. “We expect 2017
earnings to be within a range of $3.15 to $3.40 per share,
excluding the impact of the MPUC's modification of its
November 2016 order on the allocation of North Dakota
investment tax credits. We have made many accomplishments during
the year and are pleased that our efforts are delivering value to
ALLETE’s shareholders. We believe we are well positioned to deliver
additional long-term value to our shareholders with our unique mix
of businesses.”
ALLETE’s Regulated Operations segment, which includes Minnesota
Power, Superior Water, Light and Power, and the Company’s
investment in the American Transmission Co., recorded net income of
$34.2 million compared to net income of $45.0 million recorded in
the third quarter of 2016. Financial incentives under the Minnesota
conservation improvement program decreased $4.4 million after-tax
from 2016 due to the timing of the MPUC approval. In 2017, the
conservation improvement program financial incentive was approved
and recognized in the second quarter. Earnings in 2017 were also
impacted by lower residential, commercial and municipal sales
resulting from milder temperatures this quarter, lower sales to
other power suppliers as a result of higher industrial sales and
lower market prices, lower transmission margins, and higher
depreciation, property tax and interest expense. These impacts were
partially offset by higher sales to industrial customers, the
implementation of final rates at Superior Water, Light and Power in
August 2017 and interim rates at Minnesota Power in effect since
the beginning of the year.
ALLETE’s Energy Infrastructure and Related Services businesses,
which include ALLETE Clean Energy and U.S. Water Services, recorded
net income of $0.6 million and net income of $1.3 million,
respectively. Earnings at ALLETE Clean Energy decreased $0.4
million due to lower operating revenue as a result of lower wind
resources, partially offset by lower operating and maintenance
expense. Net income at U.S. Water Services decreased $0.2 million
from 2016 primarily due to higher operating expenses as a result of
investments for future growth in waste treatment and water safety
applications, partially offset by higher operating revenue compared
to the same period in 2016.
Corporate and Other, which includes BNI Energy and ALLETE
Properties, increased $16.0 million from 2016 primarily due to the
previously mentioned modification of a 2016 MPUC order on the
allocation of North Dakota investment tax credits. This increase
was partially offset by a decrease in earnings at ALLETE Properties
due to lower land sales as previously mentioned.
Earnings per share for the quarter was diluted by 3 cents due to
additional shares of common stock outstanding as of
September 30, 2017.
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 November 5, 2017, by calling
(855) 859-2056, pass code 92681362. 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 Bismarck, 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" as 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, 2017
2016 2017 2016
Operating Revenue Utility $277.6 $253.3 $824.1 $740.5
Non-utility 84.9 96.3 257.3
257.7 Total Operating Revenue 362.5 349.6
1,081.4 998.2
Operating Expenses Fuel, Purchased Power and
Gas – Utility 93.5 91.7 283.2 250.6 Transmission Services – Utility
18.9 16.6 53.1 49.5 Cost of Sales – Non-utility 36.1 45.7 106.1
108.5 Operating and Maintenance 80.0 80.8 248.2 240.9 Depreciation
and Amortization 50.9 48.9 151.5 145.7 Taxes Other than Income
Taxes 14.1 12.5 42.7
40.6 Total Operating Expenses 293.5 296.2 884.8 835.8
Operating Income 69.0 53.4
196.6 162.4
Other Income
(Expense) Interest Expense (16.6 ) (18.7 ) (50.5 ) (53.0 )
Equity Earnings in ATC 5.9 6.1 17.3 15.0 Other 0.8
1.2 2.0 2.8 Total Other
Expense (9.9 ) (11.4 ) (31.2 ) (35.2 )
Income Before Non-Controlling Interest and Income Taxes 59.1
42.0 165.4 127.2
Income Tax Expense 14.2
1.7 34.6 15.7
Net
Income 44.9 40.3 130.8
111.5 Less: Non-Controlling Interest in
Subsidiaries — — —
0.5
Net Income Attributable to ALLETE $44.9
$40.3 $130.8 $111.0
Average Shares of Common Stock Basic 51.0 49.4 50.7
49.3 Diluted 51.2 49.5 50.9
49.4
Basic Earnings Per Share of Common
Stock $0.88 $0.82 $2.58 $2.25
Diluted Earnings Per Share of
Common Stock $0.88 $0.81 $2.57 $2.25
Dividends Per Share of
Common Stock $0.535 $0.52
$1.605 $1.56
Consolidated
Balance Sheet
Millions - Unaudited
Sept. 30, Dec.
31, Sept. 30, Dec. 31, 2017
2016 2017
2016 Assets Liabilities and Shareholders’
Equity Cash and Cash Equivalents $104.4 $27.5 Current
Liabilities $290.5 $399.5 Other Current Assets 283.5 267.0
Long-Term Debt 1,444.6 1,370.4 Property, Plant and Equipment - Net
3,746.3 3,741.2 Deferred Income Taxes 592.9 554.6 Regulatory Assets
310.6 330.1 Regulatory Liabilities 111.5 125.8 Investment in ATC
146.0 135.6 Defined Benefit Pension & Other 195.2 210.9 Other
Investments 55.8 55.6 Other Non-Current Liabilities 301.1 322.7
Goodwill and Intangibles - Net 228.9 213.4 Shareholders’ Equity
2,042.7 1,893.0 Other Non-Current Assets 103.0 106.5
Total
Assets $4,978.5 $4,876.9
Total
Liabilities and Shareholders’ Equity $4,978.5
$4,876.9
Quarter Ended Nine Months
Ended ALLETE, Inc. September 30, September
30, Income (Loss) 2017 2016
2017 2016 Millions
Regulated Operations $34.2 $45.0 $110.1 $110.0 Energy
Infrastructure and Related Services ALLETE Clean Energy 0.6 1.0
11.1 9.7 U.S. Water Services 1.3 1.5 1.6 2.0 Corporate and
Other 8.8 (7.2 ) 8.0
(10.7 ) Net Income Attributable to ALLETE $44.9
$40.3 $130.8 $111.0
Diluted Earnings Per Share $0.88 $0.81
$2.57 $2.25
Statistical Data
Corporate Common Stock
High $79.61 $65.41 $79.61 $65.41 Low $69.79 $58.20 $61.64 $48.26
Close $77.29 $59.62 $77.29 $59.62 Book Value $40.02 $37.87 $40.02
$37.87
Kilowatt-hours Sold
Millions Regulated Utility Retail and Municipal Residential
239 250 791 816 Commercial 364 383 1,061 1,090 Municipal 195 205
591 611 Industrial 1,859 1,633
5,437 4,740 Total Retail and Municipal 2,657
2,471 7,880 7,257 Other Power Suppliers 977
1,141 3,022 3,456 Total
Regulated Utility Kilowatt-hours Sold 3,634
3,612 10,902 10,713
Regulated Utility Revenue
Millions
Regulated Utility Revenue Retail and Municipal Residential $26.6
$27.4 $86.4 $85.2 Commercial 35.3 36.1 103.9 100.1 Municipal 14.6
19.2 45.1 50.4 Industrial 121.5 106.0
362.8 302.5 Total Retail and Municipal
198.0 188.7 598.2 538.2 Other Power Suppliers 41.2 46.8 124.0 133.2
Other 38.4 17.8 101.9
69.1 Total Regulated Utility Revenue $277.6
$253.3 $824.1 $740.5
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171101005256/en/
ALLETE, Inc.Investor Contact:Vince
Meyer, 218-723-3952vmeyer@allete.com
Allete (NYSE:ALE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Allete (NYSE:ALE)
Historical Stock Chart
From Jul 2023 to Jul 2024