ALLETE, Inc. (NYSE:ALE) today reported first quarter 2015
earnings of 85 cents per share on net income of $39.9 million and
operating revenue of $320.0 million, compared to first quarter 2014
earnings of 80 cents per share on net income of $33.5 million and
operating revenue of $296.5 million. Included in this year’s
quarterly results were transaction fees of $3.0 million after-tax,
or six cents per share, related to the acquisition of U.S. Water
Services. The first quarter of 2014 included transaction fees of
$1.4 million after-tax, or three cents per share, for the ALLETE
Clean Energy acquisition of three wind facilities.
“These strong financial results continue the earnings momentum
we have had over the past few years,” said ALLETE Chairman,
President and CEO Al Hodnik. “Looking forward, we believe our
recent acquisitions of U.S. Water Services and by ALLETE Clean
Energy will complement our core regulated utility, balance exposure
to business cycles and changing demand, and provide long-term
earnings growth.”
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
$41.4 million, an increase of $7.5 million over the first quarter
of 2014. Total regulated utility sales increased 7.4 percent from
the first quarter a year ago, primarily due to the commencement of
the Minnkota Power sales agreement in June of 2014. Increases in
cost recovery rider revenue and production tax credits were
partially offset by increased depreciation and interest
expense.
The Investments and Other segment, which includes the
newly-acquired U.S. Water Services, ALLETE Clean Energy and BNI
Coal, recorded a net loss of $1.5 million, which included the $3.0
million after-tax U.S. Water Services transaction fees. Net income
at ALLETE Clean Energy increased from last year due to a full
quarter of operations in 2015 from acquisitions it made last year.
Last year’s results also included the aforementioned ACE
transaction fees of $1.4 million after-tax.
First quarter 2015 earnings also included 11 cents of dilution
due to additional shares of common stock outstanding as of
March 31, 2015. The additional shares were primarily used to
finance construction and acquisition activity.
Financial results were in line with Company expectations, and
ALLETE’s full-year earnings guidance range of $3.00 to $3.20 per
share, excluding transaction fees, remains unchanged. More details
about earnings guidance for the year will be discussed in our
conference call scheduled for today.
ALLETE Chairman, Chief Executive Officer and President Alan R.
Hodnik and Chief Financial Officer Steven Q. DeVinck will present
an overview of results and discuss other factors affecting
performance during a conference call beginning today at 10 a.m.
Eastern time.
Interested parties may listen to the conference live by calling
(877) 303-5852, or by accessing the webcast on ALLETE’s Web site,
www.allete.com. A replay of the call
will be available through May 9, 2015 by dialing (855) 859-2056,
pass code 22647307. 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 BNI Coal in
Center, N.D., ALLETE Clean Energy, based in Duluth, U.S. Water
Services headquartered in St. Michael, Minn. 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
Three Months Ended March 31,
2015 2014 Operating Revenue
$ 320.0 $ 296.5
Operating
Expenses Fuel and Purchased Power 86.0 96.2 Transmission
Services 14.9 10.8 Cost of Sales 31.2 23.5 Operating and
Maintenance 79.7 74.3 Depreciation and Amortization 39.0 32.2 Taxes
Other than Income Taxes 12.8
11.2 Total Operating Expenses 263.6 248.2
Operating
Income 56.4 48.3
Other Income (Expense) Interest Expense (15.1 ) (12.8 )
Equity Earnings in ATC 3.9 5.1 Other 1.1
2.0 Total Other Expense (10.1 )
(5.7 )
Income Before Non-Controlling Interest and
Income Taxes 46.3 42.6
Income Tax Expense
6.2 8.8
Net Income
40.1 33.8 Less: Non-Controlling
Interest in Subsidiaries 0.2 0.3
Net Income Attributable to ALLETE $ 39.9
$ 33.5
Average Shares of Common Stock
Basic 46.9 41.4 Diluted 47.1
41.6
Basic Earnings Per Share of Common Stock $ 0.85
$ 0.81
Diluted Earnings Per Share of Common Stock $ 0.85 $
0.80
Dividends Per Share of Common Stock $ 0.505
$ 0.49
Consolidated Balance Sheet
Millions - Unaudited
Mar. 31, Dec. 31,
Mar. 31, Dec. 31, 2015
2014 2015 2014
Assets Liabilities and Shareholders’ Equity Cash and
Cash Equivalents $72.1 $145.8 Current Liabilities $402.0 $416.0
Other Current Assets 317.9 273.0 Long-Term Debt 1,253.8 1,272.8
Property, Plant and Equipment - Net 3,319.2 3,284.8 Deferred Income
Taxes 559.5 510.7 Regulatory Assets 358.0 357.3 Regulatory
Liabilities 101.2 94.2 Investment in ATC 122.3 121.1 Defined
Benefit Pension & Other 190.4 190.9 Other Investments 114.7
114.4 Other Non-Current Liabilities 302.3 265.0 Goodwill and
Intangibles - Net 214.3 4.8 Shareholders’ Equity 1,770.9 1,611.2
Other Non-Current Assets 61.6 59.6
Total Assets $4,580.1
$4,360.8
Total Liabilities and Shareholders’
Equity $4,580.1 $4,360.8
Three Months
Ended ALLETE, Inc. March 31, Income (Loss)
2015 2014 Millions Regulated
Operations $ 41.4 $ 33.9 Investments and Other (1.5 )
(0.4 ) Net Income Attributable to ALLETE $
39.9 $ 33.5
Diluted Earnings Per Share
$ 0.85 $ 0.80
Statistical
Data Corporate Common Stock High $
59.73 $ 52.73 Low $ 51.16 $ 47.96 Close $ 52.76 $ 52.42 Book Value
$ 36.28 $ 33.11
Kilowatt-hours Sold
Millions Regulated Utility Retail and Municipals
Residential 356 398 Commercial 384 395 Municipals 233 242
Industrial 1,950 1,816
Total Retail and Municipal 2,923 2,851 Other Power Suppliers
891 700 Total Regulated Utility
3,814 3,551 Non-regulated Energy Operations 30
34 Total Kilowatt-hours Sold
3,844 3,585
Regulated Utility
Revenue Millions Regulated Utility
Revenue Retail and Municipals Residential $ 35.0 $ 39.9 Commercial
33.6 35.1 Municipals 16.0 16.5 Industrial 114.7
111.6 Total Retail and Municipals 199.3
203.1 Other Power Suppliers 33.7 29.5 Other 29.8
31.6 Total Regulated Utility Revenue
$ 262.8 $ 264.2
ALLETE, Inc.Investor Contacts:Tim Thorp,
218-723-3953tthorp@allete.comorVince Meyer,
218-723-3952vmeyer@allete.com
Allete (NYSE:ALE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Allete (NYSE:ALE)
Historical Stock Chart
From Sep 2023 to Sep 2024