BISMARCK, N.D., March 13,
2024 /PRNewswire/ -- MDU Resources Group, Inc. (NYSE:
MDU) announced that it is affirming 2024 financial guidance and
providing an updated long-term earnings per share growth rate
outlook in advance of planned investor meetings today.
MDU Resources affirmed its 2024 guidance information, which was
previously provided Feb. 8 in
connection with the announcement of its 2023 earnings results. For
2024, it still expects:
- Earnings from its regulated energy delivery business in the
range of $170 million to $180 million.
- Construction services revenues in the range of $2.9 billion to $3.1
billion, with margins comparable to 2023, and EBITDA of
$220 million to $240 million. EBITDA in a non-GAAP financial
measure. A reconciliation is provided in the "Non-GAAP Financial
Measures" section in this news release.
MDU Resources' guidance does not include transaction costs or
costs associated with standing up the construction services
business as a separate public company. The announced tax-free
spinoff of its construction services business is expected to be
complete in late 2024.
The expected 2024 results are based on these assumptions:
- Normal weather for the year, including precipitation and
temperatures, across all company markets.
- Normal economic and operating conditions.
- Continued availability of necessary equipment and
materials.
- Electric and natural gas customer growth continuing at a rate
of 1% to 2% annually.
- No planned equity issuances.
Following the spinoff of the construction services business, MDU
Resources anticipates 6% to 8% long-term compound annual growth on
earnings per share.
MDU Resources will host an Analyst and Investor Day at
10 a.m. EDT today at the New York
Stock Exchange. Those interested in participating can register to
attend the event via webcast at www.mdu.com/investor-day.
About MDU Resources
MDU Resources Group, Inc., a
member of the S&P MidCap 400 index, provides essential products
and services through its regulated energy delivery and construction
services businesses. For more information about MDU Resources,
visit www.mdu.com or contact the Investor Relations Department at
investor@mduresources.com.
Forward-Looking Statements
The information in this
release includes certain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934. The
forward-looking statements contained in this release, including
information about the planned spinoff of MDU Construction Services
Group, 2024 financial guidance and anticipated long-term earnings
per share growth, are expressed in good faith and are believed by
the company to have a reasonable basis. Nonetheless, actual results
may differ materially from the projected results expressed in the
forward-looking statements. Although the company believes that its
expectations are based on reasonable assumptions, there is no
assurance the company's projections, including financial guidance
or other proposed strategies such as the pursuit of a tax-free
spinoff of its construction services business and proposed future
structure of a pure-play regulated energy delivery company, will be
achieved. For a discussion of important factors that could cause
actual results to differ materially from those expressed in the
forward-looking statements, refer to Item 1A-Risk Factors in MDU
Resources' most recent Form 10-K and 10-Q and subsequent filings
with the SEC.
Changes in such assumptions and factors could cause actual
future results to differ materially from growth and financial
guidance. All forward-looking statements in this news release are
expressly qualified by such cautionary statements and by reference
to the underlying assumptions. Undue reliance should not be placed
on forward-looking statements, which speak only as of the date they
are made. Except as required by law, the company does not undertake
to update forward-looking statements, whether as a results of new
information, future events or otherwise.
Non-GAAP Financial Measures
The company, in
addition to presenting its earnings in conformity with GAAP, has
provided a non-GAAP financial measure of 2024 EBITDA guidance. The
company defines EBITDA from continuing operations as income (loss)
from continuing operations before interest; taxes; and depreciation
and amortization.
The company believes this non-GAAP financial measure provides
meaningful information to investors about operational efficiency
compared to the company's peers by excluding the impacts of
differences in tax jurisdictions and structures, debt levels and
capital investment. The company's management uses the non-GAAP
financial measure in conjunction with GAAP results when evaluating
the company's operating results and calculating compensation
packages. Non-GAAP financial measures are not standardized;
therefore, it may not be possible to compare such financial measure
with other companies' non-GAAP financial measures having the same
or similar names. The presentation of this additional information
is not meant to be considered a substitution for financial measures
prepared in accordance with GAAP. The company strongly encourages
investors to review the consolidated financial statements in their
entirety and to not rely on any single financial measure.
The following table provides a reconciliation of GAAP income
from continuing operations to EBITDA for forecasted
results.
EBITDA Guidance
Reconciliation for 2024
|
|
Construction
Services
|
|
Low
|
High
|
|
(In
millions)
|
Income from continuing
operations
|
$
135.0
|
$
150.0
|
Adjustments:
|
|
|
Interest
expense
|
15.0
|
15.0
|
Income
taxes
|
45.0
|
50.0
|
Depreciation and
amortization
|
25.0
|
25.0
|
EBITDA from continuing
operations
|
$
220.0
|
$
240.0
|
Media Contact: Laura Lueder, manager of
communications and public relations, 701-530-1095
Investor Contact: Brent Miller, assistant treasurer,
701-530-1730
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SOURCE MDU Resources Group, Inc.