ALLETE, Inc. (NYSE: ALE) today reported first quarter 2017
earnings of 97 cents per share on net income of $49.0 million
and operating revenue of $365.6 million. Last year’s results were
93 cents per share on net income of $45.9 million and operating
revenue of $333.8 million.
“It has been a tremendous start to 2017 as ALLETE begins the
year with solid financial results and significant progress with
several key growth initiatives. As previously disclosed, ALLETE
Clean Energy has made a strategic investment of approximately $100
million in federal tax credit qualified turbines. This investment
further positions ALLETE Clean Energy with additional growth
opportunities as evidenced by two recently announced wind projects;
a project expansion of up to 50 megawatts for Montana-Dakota
Utilities Co. and a new 100 megawatt wind energy facility to be
built and operated to service a long term PPA with Xcel Energy Inc.
We anticipate additional future investment opportunities as these
turbines have added to an already strong deal flow pipeline for
ALLETE Clean Energy. Minnesota Power and Superior Water, Light and
Power continue to move forward with their respective rate reviews
in support of earning a fair return on their investments to serve
customers,” said ALLETE Chairman, President and CEO Al Hodnik.
“These accomplishments and our positioning initiatives over the
past several years will benefit our stakeholders this year and
beyond.”
ALLETE’s Regulated Operations segment, which includes Minnesota
Power, Superior Water, Light and Power, and the Company’s
investment in the American Transmission Co. (ATC), recorded net
income of $43.5 million, an increase of $1.1 million over 2016
net income. Earnings increased primarily due to higher net income
at Minnesota Power resulting from the implementation of interim
retail rates on January 1, 2017, and kilowatt-hour sales primarily
due to increased industrial sales. These increases were mostly
offset by higher operating and maintenance, depreciation, property
tax, and interest expenses. Our equity earnings in ATC increased
$0.7 million after-tax, attributable to a larger investment balance
and period over period changes in ATC’s estimate of a refund
liability related to MISO return on equity complaints.
ALLETE’s Energy Infrastructure and Related Services businesses,
which include ALLETE Clean Energy and U.S. Water Services, recorded
net income of $6.7 million and a net loss of $0.3 million,
respectively. Earnings at ALLETE Clean Energy increased $0.6
million primarily due the absence of a minority interest acquired
in April 2016. U.S. Water’s results improved by $0.2 million
primarily due to lower amortization expense related to purchase
accounting adjustments from the 2015 acquisition, and lower
operating expenses. Earnings at U.S. Water reflect results from
selling certain products which are seasonal in nature, with higher
demand typically realized in warmer months; generally, lower sales
occur in the first quarter of each year.
Corporate and Other, which includes BNI Energy and ALLETE
Properties, posted a net loss of $0.9 million for the quarter,
compared to a net loss of $2.1 million in 2016. The net loss in
2017 decreased primarily due to lower accretion expense resulting
from the contingent consideration liability.
Earnings per share for the quarter was diluted by 2 cents due to
additional shares of common stock outstanding as of
March 31, 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 May 8, 2017 by calling (855)
859-2056, pass code 5208196. 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” 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,
2017 2016
Operating Revenue $365.6
$333.8
Operating Expenses Fuel and Purchased
Power 93.0 76.9 Transmission Services 16.6 16.8 Cost of Sales 35.2
33.3 Operating and Maintenance 83.3 78.1 Depreciation and
Amortization 50.5 48.1 Taxes Other than Income Taxes
14.4 13.8 Total Operating Expenses
293.0 267.0
Operating Income 72.6
66.8
Other Income (Expense) Interest
Expense (17.2 ) (16.9 ) Equity Earnings in ATC 6.1 4.8 Other
0.6 1.0 Total Other Expense
(10.5 ) (11.1 )
Income Before
Non-Controlling Interest and Income Taxes 62.1 55.7
Income
Tax Expense 13.1 9.3
Net Income 49.0 46.4
Less: Non-Controlling Interest in Subsidiaries
— 0.5
Net Income Attributable to
ALLETE $49.0 $45.9
Average Shares of Common Stock Basic 50.2 49.2 Diluted
50.4 49.2
Basic
Earnings Per Share of Common Stock $0.97 $0.93
Diluted
Earnings Per Share of Common Stock $0.97 $0.93
Dividends Per
Share of Common Stock $0.535
$0.52
Consolidated Balance Sheet
Millions - Unaudited
Mar.
31,
Dec.
31,
Mar.
31,
Dec.
31,
2017 2016
2017 2016
Assets Liabilities and Shareholders’ Equity Cash and
Cash Equivalents $81.8 $27.5 Current Liabilities $364.6 $399.5
Other Current Assets 278.8 267.0 Long-Term Debt 1,370.2 1,370.4
Property, Plant and Equipment - Net 3,745.3 3,741.2 Deferred Income
Taxes 568.6 554.6 Regulatory Assets 320.9 330.1 Regulatory
Liabilities 125.0 125.8 Investment in ATC 140.2 135.6 Defined
Benefit Pension & Other 195.1 210.9 Other Investments 57.7 55.6
Other Non-Current Liabilities 316.9 322.7 Goodwill and Intangibles
- Net 212.0 213.4 Shareholders’ Equity 2,001.5 1,893.0 Other
Non-Current Assets 105.2 106.5
Total
Assets $4,941.9 $4,876.9
Total Liabilities and Shareholders’ Equity
$4,941.9 $4,876.9
Three Months Ended ALLETE, Inc. March 31,
Income (Loss) 2017
2016 Millions Regulated Operations $43.5 $42.4
Energy Infrastructure and Related Services ALLETE Clean
Energy 6.7 6.1 U.S. Water Services (0.3 ) (0.5 ) Corporate
and Other (0.9 ) (2.1 ) Net Income
Attributable to ALLETE $49.0
$45.9
Diluted Earnings Per Share $0.97
$0.93
Statistical Data
Corporate Common Stock
High $68.38 $58.34 Low $61.64 $48.26 Close $67.71 $56.07 Book Value
$39.34 $37.55
Kilowatt-hours Sold
Millions Regulated Utility Retail and
Municipal Residential 323 329 Commercial 369 368 Municipal 215 219
Industrial 1,762 1,594
Total Retail and Municipal 2,669 2,510 Other Power Suppliers
1,041 1,130 Total Regulated
Utility Kilowatt-hours Sold 3,710
3,640
Regulated Utility Revenue
Millions Regulated Utility
Revenue Retail and Municipal Residential $34.7 $32.9 Commercial
36.0 32.5 Municipal 18.2 15.9 Industrial 120.5
99.9 Total Retail and Municipal 209.4 181.2
Other Power Suppliers 41.2 42.2 Other 31.0
28.9 Total Regulated Utility Revenue
$281.6 $252.3
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version on businesswire.com: http://www.businesswire.com/news/home/20170504005189/en/
ALLETE, Inc.Investor Contact:Vince Meyer,
218-723-3952vmeyer@allete.com
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