Exhibit 99
For Release: | October 31, 2008 | |
Investor: | Tim Thorp | |
Contact: | 218-723-3953 | |
tthorp@allete.com | ||
NEWS |
ALLETE reports third quarter results;
reaffirms 2008 earnings guidance
DULUTH, Minn. -- ALLETE (NYSE: ALE) today reported third quarter 2008 earnings of 85 cents per share, compared with 58 cents in the same period a year ago.
Third quarter 2008 net income was $24.7 million on revenue of $201.7 million. In the comparable period a year ago, ALLETE recorded net income of $16.5 million and revenue of $200.8 million.
“We remain on track to meet our full-year earnings targets,” said ALLETE Chairman, President and CEO Don Shippar. “We expect year-end earnings to be within the range of $2.70 to $2.90 per share.”
Net income from ALLETE’s Regulated Utility segment was $16.7 million, compared to $13 million in the third quarter of 2007. The quarterly results reflected the first electric base rate increases since 1994, which are intended to recover increased expenses, including those related to capital expenditures.
Earnings on ALLETE’s investment in the American Transmission Company improved due to a growing investment balance, and ALLETE’s Real Estate business was profitable despite an extremely difficult market environment.
Quarterly results for ALLETE’s “other” segment included $4.4 million, or 15 cents per share, related to the positive resolution of two outstanding tax issues.
Shippar said that the company’s balance sheet is solid and ALLETE has sufficient capital availability through the immediate term. “Our strong liquidity position will allow Minnesota Power to continue making significant capital investments in emission reductions and renewable energy initiatives.”
ALLETE’s corporate headquarters are located in Duluth, Minnesota. More information about the company is available on ALLETE’s Web site, 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.
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ALLETE, Inc.
Consolidated Statement of Income
For the Periods Ended September 30, 2008 and 2007
Millions Except Per Share Amounts-Unaudited
Quarter Ended | Year to Date | |||||
2008 | 2007 | 2008 | 2007 | |||
Operating Revenue | $201.7 | $200.8 | $604.9 | $629.4 | ||
Operating Expenses | ||||||
Fuel and Purchased Power | 81.0 | 91.8 | 242.3 | 262.4 | ||
Operating and Maintenance | 73.4 | 72.1 | 239.6 | 231.3 | ||
Depreciation | 13.5 | 12.2 | 39.1 | 35.8 | ||
Total Operating Expenses | 167.9 | 176.1 | 521.0 | 529.5 | ||
Operating Income | 33.8 | 24.7 | 83.9 | 99.9 | ||
Other Income (Expense) | ||||||
Interest Expense | (7.5) | (6.3) | (21.4) | (18.7) | ||
Equity Earnings in ATC | 4.2 | 3.2 | 11.2 | 9.3 | ||
Other | 2.8 | 3.2 | 13.9 | 11.9 | ||
Total Other Income (Expense) | (0.5) | 0.1 | 3.7 | 2.5 | ||
Income Before Minority Interest and Income Taxes | 33.3 | 24.8 | 87.6 | 102.4 | ||
Income Tax Expense | 8.4 | 8.1 | 28.3 | 35.4 | ||
Minority Interest | 0.2 | 0.2 | 0.3 | 1.6 | ||
Net Income | $24.7 | $16.5 | $59.0 | $65.4 | ||
Average Shares of Common Stock | ||||||
Basic | 29.1 | 28.5 | 28.9 | 28.2 | ||
Diluted | 29.3 | 28.5 | 29.0 | 28.3 | ||
Basic Earnings Per Share of Common Stock | $0.85 | $0.58 | $2.04 | $2.31 | ||
Diluted Earnings Per Share of Common Stock | $0.85 | $0.58 | $2.04 | $2.31 | ||
Dividends Per Share of Common Stock | $0.43 | $0.41 | $1.29 | $1.23 |
Consolidated Balance Sheet
Millions-Unaudited
Sep. 30, | Dec. 31, | Sep. 30, | Dec. 31, | |||
2008 | 2007 | 2008 | 2007 | |||
Assets | Liabilities and Shareholders' Equity | |||||
Cash and Short-Term Investments | $78.1 | $46.4 | Current Liabilities | $135.8 | $137.1 | |
Other Current Assets | 141.7 | 168.1 | Long-Term Debt | 537.2 | 410.9 | |
Property, Plant and Equipment | 1,292.4 | 1,104.5 | Other Liabilities | 374.9 | 353.6 | |
Investments | 213.3 | 213.8 | Shareholders' Equity | 799.7 | 742.6 | |
Other | 122.1 | 111.4 | ||||
Total Assets | $1,847.6 | $1,644.2 | Total Liabilities and Shareholders' Equity | $1,847.6 | $1,644.2 |
Quarter Ended | Year to Date | |||||||
September 30, | September 30, | |||||||
ALLETE, Inc. | 2008 | 2007 | 2008 | 2007 | ||||
Income (Loss) | ||||||||
Millions | ||||||||
Regulated Utility | $16.7 | $13.0 | $40.0 | $37.9 | ||||
Non-regulated Energy Operations | 0.9 | 0.6 | 2.3 | 3.4 | ||||
ATC | 2.5 | 1.9 | 6.5 | 5.6 | ||||
Real Estate | 0.2 | 0.6 | 2.2 | 15.2 | ||||
Other | 4.4 | 0.4 | 8.0 | 3.3 | ||||
Net Income | $24.7 | $16.5 | $59.0 | $65.4 | ||||
Diluted Earnings Per Share | $0.85 | $0.58 | $2.04 | $2.31 | ||||
Statistical Data | ||||||||
Corporate | ||||||||
Common Stock | ||||||||
High | $49.00 | $50.05 | $49.00 | $51.30 | ||||
Low | $38.05 | $38.60 | $33.76 | $38.60 | ||||
Close | $44.50 | $44.76 | $44.50 | $44.76 | ||||
Book Value | $25.32 | $23.50 | $25.32 | $23.50 | ||||
Kilowatt-hours Sold | ||||||||
Millions | ||||||||
Regulated Utility | ||||||||
Retail and Municipals | ||||||||
Residential | 252.1 | 258.8 | 853.9 | 832.1 | ||||
Commercial | 360.5 | 360.5 | 1,027.7 | 1,033.6 | ||||
Municipals | 243.0 | 255.7 | 742.5 | 751.3 | ||||
Industrial | 1,854.1 | 1,775.8 | 5,466.2 | 5,215.2 | ||||
Other | 20.5 | 21.5 | 62.0 | 62.8 | ||||
Total Retail and Municipal | 2,730.2 | 2,672.3 | 8,152.3 | 7,895.0 | ||||
Other Power Suppliers | 464.8 | 571.9 | 1,244.0 | 1,608.8 | ||||
Total Regulated Utility | 3,195.0 | 3,244.2 | 9,396.3 | 9,503.8 | ||||
Non-regulated Energy Operations | 60.6 | 60.7 | 168.9 | 184.2 | ||||
Total Kilowatt-hours Sold | 3,255.6 | 3,304.9 | 9,565.2 | 9,688.0 | ||||
Real Estate | ||||||||
Town Center Development Project | ||||||||
Non-residential Square Footage Sold | - | 50,000 | - | 474,476 | ||||
Residential Units | - | - | - | 130 | ||||
Palm Coast Park Development Project | ||||||||
Non-residential Square Footage Sold | - | - | - | 40,000 | ||||
Residential Units | - | - | - | 406 | ||||
Other Land | ||||||||
Acres Sold | 1 | 83 | 52 | 450 |
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.