DULUTH, Minn.--(BUSINESS WIRE)--
ALLETE, Inc. (NYSE: ALE) today reported 2012 earnings of $2.58 per share
compared with $2.65 per share in 2011. Excluding two non-recurring
items, ALLETE's pro-forma earnings in 2011 were $2.39 per share.
The company recorded net income of $97.1 million in 2012 compared with
$93.8 million a year ago, an increase of 3.5 percent. Operating revenue
was $961.2 million this year versus $928.2 million in 2011.
Income from ALLETE's Regulated Operations segment decreased by
$4.3 million in 2012 compared to 2011, however, last year's results
included the benefit of two non-recurring items: the reversal of a $6.2
million, or 18 cents per share, deferred tax liability and a $2.9
million, or 8 cents per share, income tax benefit. Excluding these
items, Regulated Operations increased by $4.8 million.
Continued strong retail and municipal sales, higher cost recovery
revenue and renewable energy tax credits all contributed to the
year-over-year increase. Minnesota Power electric sales to industrial
customers increased by nearly two percent over 2011 to more than 7.5
million kilowatt-hours. These increases were partially offset by
increased operating and maintenance, depreciation and interest expenses,
as well as higher costs under the Square Butte power purchase agreement.
The Investments and Other segment recorded net income of $1
million in 2012 compared to a net loss of $6.6 million in 2011, due
primarily to lower state income tax and interest expense.
Earnings for 2012 were diluted by 16 cents per share due to issuances of
common shares needed to fund major capital investments.
“I'm pleased with our 2012 financial and operational performance as we
executed our multi-faceted growth strategies,” said ALLETE President,
Chairman and CEO Al Hodnik. “Our year-end results were in the upper end
of our $2.50 to $2.60 guidance range.”
Hodnik said he was confident in ALLETE's ability to deliver continued
earnings growth in 2013. “We expect another strong year of energy sales
as our regional economy grows and we will continue to make needed
capital investments to ensure reliability and meet state renewable and
environmental mandates.”
ALLETE will host a conference call and webcast at 10:00 a.m. Eastern
time today to discuss details of its financial performance for 2012, and
its outlook for 2013. 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 18, 2013 by
calling (855) 859-2056, pass code 89501500.
ALLETE is an energy company headquartered in Duluth, Minn. ALLETE's
energy businesses include Minnesota Power, Superior Water, Light & Power
Co., BNI Coal and ALLETE Clean Energy. More information about the
company 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
For the Periods Ended December 31, 2012 and 2011
Millions Except Per Share Amounts
Quarter Ended
Year Ended
2012
2011
2012
2011
Operating Revenue
$
256.0
$
239.2
$
961.2
$
928.2
Operating Expenses
Fuel and Purchased Power
80.0
76.8
308.7
306.6
Operating and Maintenance
102.3
104.9
397.1
381.2
Depreciation
25.8
23.3
100.2
90.4
Total Operating Expenses
208.1
205
806
778.2
Operating Income
47.9
34.2
155.2
150.0
Other Income (Expense)
Interest Expense
(12.1
)
(11.0
)
(45.5
)
(43.6
)
Equity Earnings in ATC
5.1
4.7
19.4
18.4
Other
2.6
2.1
6.0
4.4
Total Other Expense
(4.4
)
(4.2
)
(20.1
)
(20.8
)
Income Before Non-Controlling Interest and Income Taxes
43.5
30.0
135.1
129.2
Income Tax Expense
14.6
10.9
38.0
35.6
Net Income
28.9
19.1
97.1
93.6
Less: Non-Controlling Interest in Subsidiaries
—
—
—
(0.2
)
Net Income Attributable to ALLETE
$
28.9
$
19.1
$
97.1
$
93.8
Average Shares of Common Stock
Basic
38.5
36.0
37.6
35.3
Diluted
38.6
36.1
37.6
35.4
Basic Earnings Per Share of Common Stock
$
0.76
$
0.53
$
2.59
$
2.66
Diluted Earnings Per Share of Common Stock
$
0.75
$
0.53
$
2.58
$
2.65
Dividends Per Share of Common Stock
$
0.46
$
0.445
$
1.84
$
1.78
Consolidated Balance Sheet
Millions
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
2012
2011
2012
2011
Assets
Liabilities and Shareholders' Equity
Cash and Short-Term Investments
$
80.8
$
101.1
Current Liabilities
$
283.4
$
163.1
Other Current Assets
192.4
175.9
Long-Term Debt
933.6
857.9
Property, Plant and Equipment
2,347.6
1,982.7
Deferred Income Taxes
423.8
373.6
Regulatory Assets
340.3
345.9
Regulatory Liabilities
60.1
43.5
Investment in ATC
107.3
98.9
Defined Benefit Pension & Other Postretirement Benefit
Plans
228.2
253.5
Investments
143.5
132.3
Other Liabilities
123.3
105.1
Other
41.5
39.2
Shareholders’ Equity
1,201.0
1,079.3
Total Assets
$
3,253.4
$
2,876.0
Total Liabilities and Shareholders’ Equity
$
3,253.4
$
2,876.0
Quarter Ended
Year Ended
ALLETE, Inc.
December 31,
December 31,
Income (Loss)
2012
2011
2012
2011
Millions
Regulated Operations
$
28.0
$
19.9
$
96.1
$
100.4
Investments and Other
0.9
(0.8
)
1.0
(6.6
)
Net Income Attributable to ALLETE
$
28.9
$
19.1
$
97.1
$
93.8
Diluted Earnings Per Share
$
0.75
$
0.53
$
2.58
$
2.65
Statistical Data
Corporate
Common Stock
High
$
42.09
$
42.54
$
42.66
$
42.54
Low
$
37.73
$
35.14
$
37.73
$
35.14
Close
$
40.98
$
41.98
$
40.98
$
41.98
Book Value
$
30.50
$
28.77
$
30.50
$
28.77
Kilowatt-hours Sold
Millions
Regulated Utility
Retail and Municipals
Residential
303
294
1,132
1,159
Commercial
352
360
1,436
1,433
Municipals
262
256
1,020
1,013
Industrial
1,877
1,895
7,502
7,365
Total Retail and Municipal
2,794
2,805
11,090
10,970
Other Power Suppliers
512
514
1,999
2,205
Total Regulated Utility
3,306
3,319
13,089
13,175
Non-regulated Energy Operations
33
30
113
105
Total Kilowatt-hours Sold
3,339
3,349
13,202
13,280
Regulated Utility Revenue
Millions
Regulated Utility Revenue
Retail and Municipals
Residential
$
28.1
$
26.6
$
104.5
$
109.1
Commercial
29.0
28.7
116.2
116.9
Municipals
15.6
14.6
60.6
61.2
Industrial
100.1
98.9
393.4
390.2
Total Retail and Municipals
172.8
168.8
674.7
677.4
Other Power Suppliers
18.6
18.5
73.1
78.7
Other
41.0
32.3
126.6
95.8
Total Regulated Utility Revenue
$
232.4
$
219.6
$
874.4
$
851.9
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.
ALLETE, Inc. Investor Contact: Tim Thorp,
218-723-3953 tthorp@allete.com
Press Release $ALE ALLETE, Inc.
Results in upper end of guidance range
DULUTH, Minn.--(BUSINESS WIRE)-- ALLETE, Inc. (NYSE: ALE) today reported 2012 earnings of $2.58 per share compared with $2.65 per share in 2011. Excluding two non-recurring items, ALLETE's pro-forma earnings in 2011 were $2.39 per share.
The company recorded net income of $97.1 million in 2012 compared with $93.8 million a year ago, an increase of 3.5 percent. Operating revenue was $961.2 million this year versus $928.2 million in 2011.
Income from ALLETE's Regulated Operations segment decreased by $4.3 million in 2012 compared to 2011, however, last year's results included the benefit of two non-recurring items: the reversal of a $6.2 million, or 18 cents per share, deferred tax liability and a $2.9 million, or 8 cents per share, income tax benefit. Excluding these items, Regulated Operations increased by $4.8 million.
Continued strong retail and municipal sales, higher cost recovery revenue and renewable energy tax credits all contributed to the year-over-year increase. Minnesota Power electric sales to industrial customers increased by nearly two percent over 2011 to more than 7.5 million kilowatt-hours. These increases were partially offset by increased operating and maintenance, depreciation and interest expenses, as well as higher costs under the Square Butte power purchase agreement.
The Investments and Other segment recorded net income of $1 million in 2012 compared to a net loss of $6.6 million in 2011, due primarily to lower state income tax and interest expense.
Earnings for 2012 were diluted by 16 cents per share due to issuances of common shares needed to fund major capital investments.
“I'm pleased with our 2012 financial and operational performance as we executed our multi-faceted growth strategies,” said ALLETE President, Chairman and CEO Al Hodnik. “Our year-end results were in the upper end of our $2.50 to $2.60 guidance range.”
Hodnik said he was confident in ALLETE's ability to deliver continued earnings growth in 2013. “We expect another strong year of energy sales as our regional economy grows and we will continue to make needed capital investments to ensure reliability and meet state renewable and environmental mandates.”
ALLETE will host a conference call and webcast at 10:00 a.m. Eastern time today to discuss details of its financial performance for 2012, and its outlook for 2013. 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 18, 2013 by calling (855) 859-2056, pass code 89501500.
ALLETE is an energy company headquartered in Duluth, Minn. ALLETE's energy businesses include Minnesota Power, Superior Water, Light & Power Co., BNI Coal and ALLETE Clean Energy. More information about the company 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.
Millions Except Per Share Amounts
Millions
Defined Benefit Pension & Other
Postretirement Benefit Plans
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.
ALLETE, Inc.
Investor Contact:
Tim Thorp, 218-723-3953
tthorp@allete.com
Source: ALLETE, Inc.