ALLETE Reports Third Quarter 2009 Earnings

October 30, 2009 8:30 AM EDT

DULUTH, Minn.--(BUSINESS WIRE)-- ALLETE (NYSE: ALE) today reported third quarter 2009 earnings of 49 cents per share, compared with 85 cents in the same period a year ago.

Net income in the third quarter of 2009 was $16.0 million on operating revenue of $178.8 million, compared with net income of $24.7 million and revenue of $201.7 million in the third quarter of 2008. Last year's results were boosted by a $4.9 million, or 15 cents per share, non-recurring item.

Net income from ALLETE's Regulated Operations segment was $16.6 million compared to $19.2 million in the third quarter 2008. Total kilowatt-hour sales declined approximately 10 percent from year-ago levels due to economic conditions that impacted all classes of retail electric customers. The lower retail sales were partially offset by sales to other power suppliers. In addition, currently authorized interim electric rates are lower compared with the third quarter of 2008, resulting in reduced revenue year-over-year.

"The first eight months of the year have been difficult for our taconite customers," said Chairman and CEO Don Shippar. "However, we are encouraged that they have begun to increase their production."

ALLETE's Investments and Other segment reported a loss of $600,000 in the third quarter of 2009, compared to net income of $5.5 million in the comparable period a year ago. The difference is mainly due to the aforementioned non-recurring item: a positive resolution of two outstanding tax issues in the third quarter of 2008. Also included this quarter was a $1.5 million net loss at ALLETE Properties. The company now anticipates recording a net loss for ALLETE Properties for the entire year.

Also affecting the quarterly comparison from 2008 to 2009 was the 6 cents per share dilutive impact of a higher common share balance than a year ago. ALLETE has issued equity over the past year to fund significant capital investments in its regulated operations.

Because of lowered expectations for ALLETE Properties, the company now expects its 2009 earnings will fall within a range of $1.95 to $2.05, excluding rate refunds related to 2008 that were recorded earlier this year.

ALLETE provides regulated energy services in Minnesota and Wisconsin, owns BNI Coal in North Dakota and maintains investments in the American Transmission Company and Florida real estate. 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, Inc.

Consolidated Statement of Income

For the Periods Ended September 30, 2009 and 2008

Millions Except Per Share Amounts - Unaudited

                                      Quarter Ended         Year to Date

                                      2009       2008       2009       2008

Operating Revenue

Operating Revenue                     $ 178.8    $ 201.7    $ 550.7    $ 604.9

Prior Year Rate Refunds                 -          -          (7.6  )    -

Total Operating Revenue                 178.8      201.7      543.1      604.9

Operating Expenses

Fuel and Purchased Power                69.8       81.0       199.4      242.3

Operating and Maintenance               67.5       74.0       224.7      241.5

Depreciation                            16.1       13.5       46.8       39.1

Total Operating Expenses                153.4      168.5      470.9      522.9

Operating Income                        25.4       33.2       72.2       82.0

Other Income (Expense)

Interest Expense                        (8.3  )    (6.9  )    (25.4 )    (19.5 )

Equity Earnings in ATC                  4.4        4.2        12.9       11.2

Other                                   0.8        2.8        3.8        13.9

Total Other Income (Expense)            (3.1  )    0.1        (8.7  )    5.6

Income Before Non-Controlling           22.3       33.3       63.5       87.6
Interest and Income Taxes

Income Tax Expense                      6.5        8.4        21.5       28.3

Net Income                              15.8       24.9       42.0       59.3

Less: Non-Controlling Interest in       (0.2  )    0.2        (0.3  )    0.3
Subsidiaries

Net Income Attributable to ALLETE     $ 16.0     $ 24.7     $ 42.3     $ 59.0

Average Shares of Common Stock

Basic                                   32.8       29.1       31.8       28.9

Diluted                                 32.9       29.3       31.9       29.0

Basic and Diluted Earnings Per Share  $ 0.49     $ 0.85     $ 1.33     $ 2.04
of Common Stock

Dividends Per Share of Common Stock   $ 0.44     $ 0.43     $ 1.32     $ 1.29

Consolidated Balance Sheet

Millions - Unaudited

                 Sep. 30,   Dec. 31,                       Sep. 30,   Dec. 31,

                 2009       2008                           2009       2008

Assets                                  Liabilities and
                                        Equity

Cash and                                Current
Short-Term       $ 54.3     $ 102.0     Liabilities        $ 142.1    $ 150.7
Investments

Other Current      158.2      150.3     Long-Term Debt       628.4      588.3
Assets

Property, Plant    1,530.5    1,387.3   Other Liabilities    352.0      389.3
and Equipment

                                        Deferred Income
Investment in      85.1       76.9      Taxes &              217.5      169.6
ATC                                     Investment Tax
                                        Credits

Investments        138.8      136.9     Equity               915.1      836.9

Other              288.2      281.4

Total Assets     $ 2,255.1  $ 2,134.8   Total Liabilities  $ 2,255.1  $ 2,134.8
                                        and Equity

                                   Quarter Ended       Year to Date

                                   September 30,       September 30,

ALLETE, Inc.                       2009       2008     2009       2008

Income (Loss)

Millions

Regulated Operations               $ 16.6     $ 19.2   $ 45.0     $ 46.5

Investments and Other                (0.6  )    5.5      (2.7  )    12.5

Net Income Attributable to ALLETE  $ 16.0     $ 24.7   $ 42.3     $ 59.0

Diluted Earnings Per Share         $ 0.49     $ 0.85   $ 1.33     $ 2.04

Statistical Data

Corporate

Common Stock

High                               $ 34.57    $ 49.00  $ 34.57    $ 49.00

Low                                $ 27.75    $ 38.05  $ 23.35    $ 33.76

Close                              $ 33.57    $ 44.50  $ 33.57    $ 44.50

Book Value                         $ 25.95    $ 25.32  $ 25.95    $ 25.32

Kilowatt-hours Sold

Millions

Regulated Utility

Retail and Municipals

Residential                          240        252      857        854

Commercial                           352        381      1,061      1,090

Municipals                           243        243      729        742

Industrial                           984        1,854    3,182      5,466

Total Retail and Municipal           1,819      2,730    5,829      8,152

Other Power Suppliers                1,051      465      3,075      1,244

Total Regulated Utility              2,870      3,195    8,904      9,396

Non-regulated Energy Operations      56         61       162        169

Total Kilowatt-hours Sold            2,926      3,256    9,066      9,565

    Source: ALLETE, Inc.

Related Categories

Press Releases

Stocks Mentioned

Related Entities

• Dividend
• Life, Style and Real Estate

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?