Minnesota
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0-53713
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27-0383995
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(State or other jurisdiction
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(Commission
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(I.R.S. Employer
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of incorporation)
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File Number)
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Identification No.)
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215 South Cascade Street, P.O. Box 496, Fergus Falls, MN
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56538-0496
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(Address of principal executive offices)
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(Zip Code)
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OTTER TAIL CORPORATION
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||
Date: August 9, 2011
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||
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||
By:
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/s/ Kevin G. Moug
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Kevin G. Moug
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||
Chief Financial Officer
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Exhibit
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Description of Exhibit
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99.1
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Press release, dated August 8, 2011
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![]() |
Exhibit 99.1 |
NEWS RELEASE |
Media contact:
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Michael J. Olsen, Sr. Vice President of Corporate Communications, (701) 451-3580 or (866) 410-8780
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Investor contact:
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Loren Hanson, Manager of Investor Relations, (218) 739-8481 or (800) 664-1259
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For release:
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August 8, 2011
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Financial Media
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●
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Consolidated revenues from continuing operations increased to $317.0 million from $251.3 million in the second quarter of 2010
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●
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Consolidated operating income from continuing operations rose to $14.6 million from a $15.2 million operating loss in the second quarter of 2010
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●
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Consolidated net income from continuing operations was $6.0 million compared with a $16.3 million net loss for the second quarter of 2010
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●
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Consolidated net income, from continuing and discontinued operations, totaled $18.8 million compared with a $14.2 million net loss for the second quarter of 2010
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●
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Diluted earnings per share from continuing operations totaled $0.16 compared with a $0.46 loss for the second quarter of 2010
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●
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Diluted earnings per share, from continuing and discontinued operations, totaled $0.51 compared with a $0.40 loss per share for the second quarter of 2010
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●
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The corporation recorded a net gain on sale of Idaho Pacific Holdings, Inc. of $13.3 million in the second quarter of 2011
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●
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The corporation has refined its strategic direction based on a narrower, yet still diversified portfolio, an enhanced operating structure, and capital investments in its electric utility
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●
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The corporation provides updated guidance to reflect discontinued operations and its business outlook for the operating companies
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●
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a $1.1 million second quarter 2010 refund accrual of a portion of revenues collected from Otter Tail Power Company’s Big Stone II project partners, and
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●
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a $0.7 million increase in transmission tariff and services revenues.
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●
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At DMI, revenues increased $19.3 million as a result of a 43.4% increase in towers produced while DMI’s net loss increased $3.5 million. The increase in net loss reflects, on a pretax basis, a $1.5 million increase in outsourced quality control costs to satisfy expanded customer requirements, productivity losses of $1.3 million due to rework and underutilization of plant capacity, and $0.8 million from the absorption of higher steel costs when a supplier did not fulfill its delivery requirements. DMI’s interest expense increased $0.4 million due to an increase in outstanding debt and higher interest rates between the quarters. Additionally, beginning in the fourth quarter of 2010, DMI is not recognizing tax benefits on the operating losses of its Canadian operations until those operations become profitable. The unrecognized tax benefits totaled approximately $1.0 million in the second quarter of 2011.
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●
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In trucking operations, revenues increased $1.2 million while net income decreased $0.2 million, reflecting less than full recovery of a 35.8% increase in fuel prices between the quarters.
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●
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At BTD, revenues increased $9.3 million and net income increased $0.6 million as a result of higher sales volume due to improved customer demand.
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●
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At T.O. Plastics, revenues decreased by $0.6 million and net income decreased $0.1 million due to decreases in sales volumes of all product lines except horticultural products.
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●
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At ShoreMaster revenues increased $0.2 million while its net income was $0.5 million in the second quarter of 2011 compared with a net loss of $16.8 million in the second quarter of 2010. ShoreMaster’s second quarter 2010 results included a $15.6 million net-of-tax asset impairment charge and a $1.3 million net-of-tax increase in its allowance for doubtful accounts in its residential and commercial businesses.
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Three Months Ended
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||||||||||||||||||||||||
June 30, 2011
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June 30, 2010
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|||||||||||||||||||||||
(in thousands)
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IPH
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Wylie-
Wind
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Total
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IPH
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Wylie-
Wind
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Total
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||||||||||||||||||
Operating Revenues
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$ | 7,480 | $ | 125 | $ | 7,605 | $ | 18,255 | $ | 1,917 | $ | 20,172 | ||||||||||||
Income (Loss) Before Income Taxes
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$ | 966 | $ | (1,730 | ) | $ | (764 | ) | $ | 2,992 | $ | 292 | $ | 3,284 | ||||||||||
Gain on Disposition - Pretax
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16,767 | -- | 16,767 | -- | -- | -- | ||||||||||||||||||
Income Tax Expense (Benefit)
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3,865 | (692 | ) | 3,173 | 1,110 | 117 | 1,227 | |||||||||||||||||
Net Income
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$ | 13,868 | $ | (1,038 | ) | $ | 12,830 | $ | 1,882 | $ | 175 | $ | 2,057 |
2011 Earnings Per Share Guidance Range
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||||||||||||||||
Previous Guidance
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Current Guidance
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|||||||||||||||
Low
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High
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Low
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High
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|||||||||||||
Electric
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$ | .99 | $ | 1.04 | $ | 1.01 | $ | 1.06 | ||||||||
Wind Energy
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(.40 | ) | (.25 | ) | (.80 | ) | (.50 | ) | ||||||||
Manufacturing
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.25 | .29 | .25 | .30 | ||||||||||||
Construction
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.05 | .08 | .05 | .08 | ||||||||||||
Plastics
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.05 | .08 | .10 | .13 | ||||||||||||
Health Services
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.00 | .04 | .01 | .05 | ||||||||||||
Corporate
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(.20 | ) | (.18 | ) | (.20 | ) | (.18 | ) | ||||||||
Total – Continuing Operations
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$ | .74 | $ | 1.10 | $ | .42 | $ | .94 | ||||||||
Earnings – Discontinued Operations:
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||||||||||||||||
IPH
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.06 | .07 | .07 | .07 | ||||||||||||
E.W. Wylie Heavy Haul - Wind
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(.12 | ) | (.08 | ) | ||||||||||||
Gain on Sale of IPH
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.35 | .38 | .35 | .37 | ||||||||||||
Total
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$ | 1.15 | $ | 1.55 | $ | .72 | $ | 1.30 |
●
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The corporation expects an increase in net income from its Electric segment in 2011 compared to 2010 and from its previously announced guidance. This is based on anticipated sales growth and rate and rider recovery increases, an increase in capitalized interest costs related to larger construction expenditures and reductions in operating and maintenance expense in 2011 due to lower benefit costs.
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●
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The corporation’s 2011 earnings guidance for its Wind Energy segment reflects the following factors:
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o
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The corporation expects losses at DMI resulting from productivity challenges, a decrease in the number of towers produced, increased price pressure on new orders, and potential exposure to liquidated damages, warranty claims, or remediation costs related to past production issues. It is anticipated that tower production for the remainder of 2011 will decrease from previous forecasts. This forecast decrease in tower demand primarily results from a general softening in the wind industry. The resulting decrease in production levels will offset productivity gains achieved over the past quarter and increase the fixed charge allocation to the remaining towers produced. Additionally, DMI continues to face pressures to reduce price due to over capacity in the U.S. market, and significantly lower steel costs available to Asian manufacturers.
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o
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The corporation exited Wylie’s wind-heavy haul business in the second quarter of 2011. Accordingly, the results of operations from this part of the business have been reclassified to discontinued operations. The corporation expects the continuing flatbed trucking operations to be near breakeven levels for 2011.
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o
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Backlog in the Wind Energy segment is $82 million for 2011 compared with $68 million a year ago.
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●
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The corporation expects earnings from its Manufacturing segment to increase from the original 2011 guidance as a result of increased order volume and continuing improvement in economic conditions in the industries BTD serves. ShoreMaster is expecting significantly improved performance as a result of bringing costs in line with current revenue levels and absent last year’s $15.6 million net-of-tax noncash impairment charge. T.O. Plastics is expected to have slightly better earnings in 2011 compared with 2010. Backlog for the manufacturing companies for 2011 is approximately $62 million compared with $47 million one year ago.
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●
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The corporation expects higher net income from its Construction segment in 2011 as the economy improves and the construction companies record earnings on a higher volume of jobs in progress. Backlog for the construction businesses is $84 million for 2011 compared with $65 million one year ago.
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The corporation is increasing its earnings expectations for its Plastics segment given strong second quarter 2011 performance.
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The corporation expects a slight increase in earnings from its previously issued guidance for its Health Services segment in 2011 as the benefits of implementing its asset reduction plan continue to be realized.
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Corporate general and administrative costs are expected to decrease in 2011, compared with 2010, as a result of recent reductions in employee count and associated decreases in benefit costs.
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The net earnings and the gain on sale of IPH are now reflective of the actual results as the sale of the business closed in May 2011. In addition, the corporation exited the wind-heavy haul operations of E.W. Wylie in the second quarter of 2011. The net loss reflected in the guidance table is the result of actual operating activity of this business and an estimate of any other potential costs that could occur as the business winds down. There was no gain or loss incurred on disposal of the asset fleet associated with Wylie’s wind-heavy haul business.
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(in millions)
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2011
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2012
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2013
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|||||||||
Capital Expenditures:
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||||||||||||
Electric Segment:
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||||||||||||
Transmission
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$ | 23 | $ | 31 | $ | 65 | ||||||
Environmental
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4 | 49 | 97 | |||||||||
Other
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40 | 50 | 57 | |||||||||
Total Electric Segment
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$ | 67 | $ | 130 | $ | 219 | ||||||
Nonelectric Segments
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40 | 41 | 48 | |||||||||
Total Capital Expenditures
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$ | 107 | $ | 171 | $ | 267 | ||||||
Total Electric Utility Average Rate Base
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$ | 651 | $ | 722 | $ | 876 |
●
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The corporation is subject to federal and state legislation, regulations and actions that may have a negative impact on its business and results of operations.
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Federal and state environmental regulation could require the corporation to incur substantial capital expenditures and increased operating costs.
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Volatile financial markets and changes in the corporation’s debt ratings could restrict its ability to access capital and could increase borrowing costs and pension plan and postretirement health care expenses.
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The corporation relies on access to both short- and long-term capital markets as a source of liquidity for capital requirements not satisfied by cash flows from operations. If the corporation is not able to access capital at competitive rates, its ability to implement its business plans may be adversely affected.
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●
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The corporation may experience fluctuations in revenues and expenses related to its operations, which may cause its financial results to fluctuate and could impair its ability to make distributions to its shareholders or scheduled payments on its debt obligations, or to meet covenants under its borrowing agreements.
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Disruptions, uncertainty or volatility in the financial markets can also adversely impact the corporation’s results of operations, the ability of its customers to finance purchases of goods and services, and its financial condition, as well as exert downward pressure on stock prices and/or limit its ability to sustain its current common stock dividend level.
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●
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The corporation is not currently required to make any contributions to its defined benefit pension plan in 2011. The corporation could make discretionary contributions to the plan or could be required to contribute additional capital to the pension plan in future years if the market value of pension plan assets significantly declines in the future, plan assets do not earn in line with the corporation’s long-term rate of return assumptions or relief under the Pension Protection Act is no longer granted.
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Any significant impairment of the corporation’s goodwill would cause a decrease in its asset values and a reduction in its net operating income.
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A sustained decline in the corporation’s common stock price below book value or declines in projected operating cash flows at any of its operating companies may result in goodwill impairments that could adversely affect its results of operations and financial position, as well as financing agreement covenants.
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●
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The inability of the corporation’s subsidiaries to provide sufficient earnings and cash flows to allow the corporation to meet its financial obligations and debt covenants and pay dividends to its shareholders could have an adverse effect on the corporation.
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Economic conditions could negatively impact the corporation’s businesses.
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If the corporation is unable to achieve the organic growth it expects, its financial performance may be adversely affected.
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The corporation’s plans to grow and realign its diversified business mix through capital projects, acquisitions and dispositions may not be successful, which could result in poor financial performance.
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The corporation’s plans to grow and operate its nonelectric businesses could be limited by state law.
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The corporation’s subsidiaries enter into production and construction contracts, including contracts for new product designs, which could expose them to unforeseen costs and costs not within their control, which may not be recoverable and could adversely affect the corporation’s results of operations and financial condition.
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●
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Significant warranty claims in excess of amounts normally reserved for such items could adversely affect the corporation’s results of operations and financial condition. Also, expenses associated with remediation activities in the wind energy segment could be substantial. The potential exists for multiple claims based on one defect repeated throughout the production process or for claims where the cost to repair or replace the defective part is highly disproportionate to the original cost of the part. If the corporation is required to cover remediation expenses in addition to regular warranty coverage, the corporation could be required to accrue additional expenses and experience additional unplanned cash expenditures which could adversely affect the corporation’s consolidated results of operations and financial condition.
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●
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The corporation is subject to risks associated with energy markets.
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The corporation is subject to risks and uncertainties related to the timing and recovery of deferred tax assets which could have a negative impact on the corporation’s net income in future periods.
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Certain of the corporation’s operating companies sell products to consumers that could be subject to recall.
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Competition is a factor in all of the corporation’s businesses.
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Actions by the regulators of the corporation’s electric operations could result in rate reductions, lower revenues and earnings or delays in recovering capital expenditures.
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Otter Tail Power Company could be required to absorb a disproportionate share of costs for investments in transmission infrastructure required to provide independent power producers access to the transmission grid. These costs may not be recoverable through a transmission tariff and could result in reduced returns on invested capital and/or increased rates to Otter Tail Power Company's retail electric customers.
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●
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Otter Tail Power Company’s electric generating facilities are subject to operational risks that could result in unscheduled plant outages, unanticipated operation and maintenance expenses and increased power purchase costs.
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●
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Wholesale sales of electricity from excess generation could be affected by reductions in coal shipments to the Big Stone and Hoot Lake plants due to supply constraints or rail transportation problems beyond the corporation’s control.
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●
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Changes to regulation of generating plant emissions, including but not limited to carbon dioxide (CO2) emissions, could affect Otter Tail Power Company’s operating costs and the costs of supplying electricity to its customers.
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●
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The U.S. wind industry is reliant on tax and other economic incentives and political and governmental policies. A significant change in these incentives and policies could negatively impact the corporation’s results of operations and growth.
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●
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The corporation’s wind tower manufacturing business is substantially dependent on a few significant customers.
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●
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Prolonged periods of low utilization of DMI’s wind tower production plants, due to a continuing softening of demand for its product, could cause DMI to idle certain facilities. Should this softened demand for wind towers continue, these events may result in impairment charges on certain of DMI’s facilities if future cash flow estimates, based on information available to management at the time, indicate that the plants carrying values may not be recoverable or, if any plant assets are sold below their carrying values, significant losses may be incurred.
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●
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Competition from foreign and domestic manufacturers, cost management in a fixed price contract project environment, the price and availability of raw materials and diesel fuel, the ability of suppliers to deliver materials at contracted prices, fluctuations in foreign currency exchange rates and general economic conditions could affect the revenues and earnings of the corporation’s wind energy and manufacturing businesses.
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●
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A significant failure or an inability to properly bid or perform on projects by the corporation’s wind energy, construction or manufacturing businesses could lead to adverse financial results and could lead to the possibility of delay or liquidated damages.
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●
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The corporation’s plastic pipe companies compete against a large number of other manufacturers of PVC pipe and manufacturers of alternative products. Customers may not distinguish the pipe companies’ products from those of its competitors.
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●
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Reductions in PVC resin prices can negatively impact PVC pipe prices, profit margins on PVC pipe sales and the value of PVC pipe held in inventory.
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●
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Changes in the rates or method of third-party reimbursements for diagnostic imaging services could result in reduced demand for those services or create downward pricing pressure, which would decrease revenues and earnings for the corporation’s Health Services segment.
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●
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The corporation’s health services businesses may be unable to continue to maintain agreements with Philips Medical from which the businesses derive significant revenues from the sale and service of Philips Medical diagnostic imaging equipment.
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●
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Technological change in the diagnostic imaging industry could reduce the demand for diagnostic imaging services and require the corporation’s health services operations to incur significant costs to upgrade its equipment.
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●
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Actions by regulators of the corporation’s health services operations could result in monetary penalties or restrictions in the corporation’s health services operations.
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Otter Tail Corporation
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||||||||||||||||
Consolidated Statements of Income
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||||||||||||||||
In thousands, except share and per share amounts
|
||||||||||||||||
(not audited)
|
||||||||||||||||
Quarter Ended June 30,
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Year-to-Date June 30,
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|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Operating Revenues by Segment
|
||||||||||||||||
Electric
|
$ | 78,031 | $ | 77,527 | $ | 169,627 | $ | 168,979 | ||||||||
Wind Energy
|
66,253 | 45,714 | 122,527 | 94,375 | ||||||||||||
Manufacturing
|
58,358 | 49,507 | 114,671 | 87,538 | ||||||||||||
Construction
|
49,133 | 30,149 | 86,648 | 47,923 | ||||||||||||
Plastics
|
44,373 | 26,739 | 62,851 | 49,826 | ||||||||||||
Health Services
|
22,983 | 23,645 | 45,478 | 48,816 | ||||||||||||
Corporate Revenue and Intersegment Eliminations
|
(2,156 | ) | (1,967 | ) | (3,469 | ) | (3,194 | ) | ||||||||
Total Operating Revenues
|
316,975 | 251,314 | 598,333 | 494,263 | ||||||||||||
Operating Expenses
|
||||||||||||||||
Fuel and Purchased Power
|
24,974 | 26,912 | 56,928 | 59,877 | ||||||||||||
Nonelectric Cost of Goods Sold (depreciation included below)
|
193,830 | 137,012 | 349,539 | 254,496 | ||||||||||||
Electric Operating and Maintenance Expense
|
31,104 | 31,730 | 62,221 | 62,670 | ||||||||||||
Nonelectric Operating and Maintenance Expense
|
32,765 | 32,463 | 60,307 | 61,229 | ||||||||||||
Asset Impairment Charge
|
-- | 19,740 | -- | 19,740 | ||||||||||||
Depreciation and Amortization
|
19,725 | 18,655 | 38,811 | 37,229 | ||||||||||||
Total Operating Expenses
|
302,398 | 266,512 | 567,806 | 495,241 | ||||||||||||
Operating Income (Loss) by Segment
|
||||||||||||||||
Electric
|
11,933 | 8,847 | 30,419 | 26,357 | ||||||||||||
Wind Energy
|
(6,693 | ) | (2,701 | ) | (12,717 | ) | (836 | ) | ||||||||
Manufacturing
|
5,602 | (17,664 | ) | 10,705 | (17,758 | ) | ||||||||||
Construction
|
515 | (669 | ) | 190 | (3,058 | ) | ||||||||||
Plastics
|
5,853 | 794 | 5,587 | 2,413 | ||||||||||||
Health Services
|
933 | 209 | 2,016 | (706 | ) | |||||||||||
Corporate
|
(3,566 | ) | (4,014 | ) | (5,673 | ) | (7,390 | ) | ||||||||
Total Operating Income
|
14,577 | (15,198 | ) | 30,527 | (978 | ) | ||||||||||
Interest Charges
|
9,149 | 9,398 | 18,638 | 18,420 | ||||||||||||
Other Income
|
1,107 | 552 | 1,828 | 565 | ||||||||||||
Income Tax Expense (Benefit) – Continuing Operations
|
537 | (7,769 | ) | 2,085 | (6,018 | ) | ||||||||||
Net Income (Loss) by Segment – Continuing Operations
|
||||||||||||||||
Electric
|
7,386 | 4,432 | 18,528 | 11,923 | ||||||||||||
Wind Energy
|
(6,535 | ) | (2,815 | ) | (12,946 | ) | (2,635 | ) | ||||||||
Manufacturing
|
2,721 | (15,116 | ) | 4,988 | (15,851 | ) | ||||||||||
Construction
|
184 | (493 | ) | (141 | ) | (1,982 | ) | |||||||||
Plastics
|
3,312 | 232 | 2,938 | 1,013 | ||||||||||||
Health Services
|
458 | 35 | 1,030 | (656 | ) | |||||||||||
Corporate
|
(1,528 | ) | (2,550 | ) | (2,765 | ) | (4,627 | ) | ||||||||
Net Income (Loss) from Continuing Operations
|
5,998 | (16,275 | ) | 11,632 | (12,815 | ) | ||||||||||
Discontinued Operations
|
||||||||||||||||
Income (Loss) from Discontinued Operations net of income taxes
|
||||||||||||||||
of $(342), $1,227, $(364), and $1,856 for the respective periods
|
(422 | ) | 2,057 | (360 | ) | 3,314 | ||||||||||
Gain on Disposition of Discontinued Operations net of income taxes
|
||||||||||||||||
of $3,515 for the three and six months ended June 30, 2011
|
13,252 | -- | 13,252 | -- | ||||||||||||
Net Income from Discontinued Operations
|
12,830 | 2,057 | 12,892 | 3,314 | ||||||||||||
Total Net Income (Loss)
|
18,828 | (14,218 | ) | 24,524 | (9,501 | ) | ||||||||||
Preferred Dividend Requirement and Other Adjustments
|
506 | 279 | 690 | 463 | ||||||||||||
Balance for Common
|
$ | 18,322 | $ | (14,497 | ) | $ | 23,834 | $ | (9,964 | ) | ||||||
Average Number of Common Shares Outstanding
|
||||||||||||||||
Basic
|
35,926,124 | 35,799,231 | 35,901,489 | 35,759,901 | ||||||||||||
Diluted
|
36,163,805 | 35,799,231 | 36,139,170 | 35,759,901 | ||||||||||||
Basic Earnings Per Common Share:
|
||||||||||||||||
Continuing Operations (net of preferred dividend requirement)
|
$ | 0.16 | $ | (0.46 | ) | $ | 0.31 | $ | (0.37 | ) | ||||||
Discontinued Operations (net of other adjustments)
|
0.35 | 0.06 | 0.35 | 0.09 | ||||||||||||
$ | 0.51 | $ | (0.40 | ) | $ | 0.66 | $ | (0.28 | ) | |||||||
Diluted Earnings Per Common Share:
|
||||||||||||||||
Continuing Operations (net of preferred dividend requirement)
|
$ | 0.16 | $ | (0.46 | ) | $ | 0.31 | $ | (0.37 | ) | ||||||
Discontinued Operations (net of other adjustments)
|
0.35 | 0.06 | 0.35 | 0.09 | ||||||||||||
$ | 0.51 | $ | (0.40 | ) | $ | 0.66 | $ | (0.28 | ) |
Otter Tail Corporation
|
||||||||
Consolidated Balance Sheets
|
||||||||
ASSETS
|
||||||||
in thousands
|
||||||||
(not audited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Current Assets
|
||||||||
Cash and Cash Equivalents
|
$ | -- | $ | -- | ||||
Accounts Receivable:
|
||||||||
Trade—Net
|
148,252 | 124,353 | ||||||
Other
|
14,554 | 19,399 | ||||||
Inventories
|
86,235 | 79,270 | ||||||
Deferred Income Taxes
|
12,096 | 11,068 | ||||||
Accrued Utility and Cost-of-Energy Revenues
|
11,818 | 16,323 | ||||||
Costs and Estimated Earnings in Excess of Billings
|
71,688 | 67,352 | ||||||
Income Taxes Receivable
|
-- | 4,146 | ||||||
Other
|
21,017 | 20,224 | ||||||
Assets of Discontinued Operations
|
2,537 | 93,783 | ||||||
Total Current Assets
|
368,197 | 435,918 | ||||||
Investments
|
12,872 | 9,708 | ||||||
Other Assets
|
28,581 | 27,356 | ||||||
Goodwill
|
69,742 | 69,742 | ||||||
Other Intangibles--Net
|
15,932 | 16,280 | ||||||
Deferred Debits
|
||||||||
Unamortized Debt Expense
|
6,267 | 6,444 | ||||||
Regulatory Assets
|
114,514 | 127,766 | ||||||
Total Deferred Debits
|
120,781 | 134,210 | ||||||
Plant
|
||||||||
Electric Plant in Service
|
1,336,640 | 1,332,974 | ||||||
Nonelectric Operations
|
365,642 | 340,167 | ||||||
Construction Work in Progress
|
56,330 | 42,031 | ||||||
Total Gross Plant
|
1,758,612 | 1,715,172 | ||||||
Less Accumulated Depreciation and Amortization
|
666,570 | 637,831 | ||||||
Net Plant
|
1,092,042 | 1,077,341 | ||||||
Total
|
$ | 1,708,147 | $ | 1,770,555 |
Otter Tail Corporation
|
||||||||
Consolidated Balance Sheets
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
in thousands
|
||||||||
(not audited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
Current Liabilities
|
||||||||
Short-Term Debt
|
$ | 30,362 | $ | 79,490 | ||||
Current Maturities of Long-Term Debt
|
3,340 | 604 | ||||||
Accounts Payable
|
121,020 | 113,761 | ||||||
Accrued Salaries and Wages
|
20,247 | 20,252 | ||||||
Accrued Federal and State Income Taxes
|
504 | -- | ||||||
Other Accrued Taxes
|
8,392 | 11,957 | ||||||
Derivative Liabilities
|
18,683 | 17,991 | ||||||
Other Accrued Liabilities
|
8,464 | 9,546 | ||||||
Liabilities of Discontinued Operations
|
2,537 | 23,176 | ||||||
Total Current Liabilities
|
213,549 | 276,777 | ||||||
Pensions Benefit Liability
|
75,470 | 73,538 | ||||||
Other Postretirement Benefits Liability
|
43,187 | 42,372 | ||||||
Other Noncurrent Liabilities
|
20,526 | 21,043 | ||||||
Deferred Credits
|
||||||||
Deferred Income Taxes
|
173,561 | 162,208 | ||||||
Deferred Tax Credits
|
34,125 | 44,945 | ||||||
Regulatory Liabilities
|
68,275 | 66,416 | ||||||
Other
|
488 | 556 | ||||||
Total Deferred Credits
|
276,449 | 274,125 | ||||||
Capitalization
|
||||||||
Long-Term Debt, Net of Current Maturities
|
433,715 | 434,812 | ||||||
Class B Stock Options of Subsidiary
|
-- | 525 | ||||||
Cumulative Preferred Shares
|
15,500 | 15,500 | ||||||
Cumulative Preference Shares
|
-- | -- | ||||||
Common Equity
|
||||||||
Common Shares, Par Value $5 Per Share
|
180,306 | 180,014 | ||||||
Premium on Common Shares
|
251,530 | 251,919 | ||||||
Retained Earnings
|
200,839 | 198,443 | ||||||
Accumulated Other Comprehensive (Loss) Income
|
(2,924 | ) | 1,487 | |||||
Total Common Equity
|
629,751 | 631,863 | ||||||
Total Capitalization
|
1,078,966 | 1,082,700 | ||||||
Total
|
$ | 1,708,147 | $ | 1,770,555 |
Consolidated Statements of Cash Flows
|
||||||||
In thousands
|
||||||||
(not audited)
|
||||||||
Six Months Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Cash Flows from Operating Activities
|
||||||||
Net Income (Loss)
|
$ | 24,524 | $ | (9,501 | ) | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
||||||||
Net Gain from Sale of Discontinued Operations
|
(13,252 | ) | -- | |||||
Net Loss (Income) from Discontinued Operations
|
360 | (3,314 | ) | |||||
Depreciation and Amortization
|
38,811 | 37,229 | ||||||
Asset Impairment Charge
|
-- | 19,740 | ||||||
Deferred Tax Credits
|
(1,281 | ) | (1,358 | ) | ||||
Deferred Income Taxes
|
5,611 | 7,547 | ||||||
Change in Deferred Debits and Other Assets
|
7,648 | (858 | ) | |||||
Change in Noncurrent Liabilities and Deferred Credits
|
1,230 | 4,471 | ||||||
Allowance for Equity (Other) Funds Used During Construction
|
(292 | ) | -- | |||||
Change in Derivatives Net of Regulatory Deferral
|
45 | (409 | ) | |||||
Stock Compensation Expense – Equity Awards
|
921 | 1,320 | ||||||
Other--Net
|
(243 | ) | (389 | ) | ||||
Cash (Used for) Provided by Current Assets and Current Liabilities:
|
||||||||
Change in Receivables
|
(18,936 | ) | (20,998 | ) | ||||
Change in Inventories
|
(6,966 | ) | (4,083 | ) | ||||
Change in Other Current Assets
|
(2,594 | ) | (15,874 | ) | ||||
Change in Payables and Other Current Liabilities
|
4,727 | (276 | ) | |||||
Change in Interest Payable and Income Taxes Receivable/Payable
|
377 | 36,594 | ||||||
Net Cash Provided by Continuing Operations
|
40,690 | 49,841 | ||||||
Net Cash Provided by (Used in) Discontinued Operations
|
47 | (422 | ) | |||||
Net Cash Provided by Operating Activities
|
40,737 | 49,419 | ||||||
Cash Flows from Investing Activities
|
||||||||
Capital Expenditures
|
(48,111 | ) | (38,605 | ) | ||||
Proceeds from Disposal of Noncurrent Assets
|
2,229 | 1,999 | ||||||
Net Decrease (Increase) in Other Investments
|
837 | (808 | ) | |||||
Net Cash Used in Investing Activities – Continuing Operations
|
(45,045 | ) | (37,414 | ) | ||||
Net Proceeds from Sale of Discontinued Operations
|
84,363 | -- | ||||||
Net Cash Used in Investing Activities – Discontinued Operations
|
(6,065 | ) | (960 | ) | ||||
Net Cash Provided by (Used in) Investing Activities
|
33,253 | (38,374 | ) | |||||
Cash Flows from Financing Activities
|
||||||||
Change in Checks Written in Excess of Cash
|
(5,937 | ) | 4,987 | |||||
Net Short-Term Borrowings
|
(49,128 | ) | 60,002 | |||||
Proceeds from Issuance of Common Stock
|
-- | 549 | ||||||
Proceeds from Issuance of Class B Stock of Subsidiary
|
-- | 153 | ||||||
Common Stock Issuance Expenses
|
-- | (142 | ) | |||||
Payments for Retirement of Common Stock
|
(152 | ) | (401 | ) | ||||
Payments for Retirement of Class B Stock of Subsidiary
|
-- | (994 | ) | |||||
Proceeds from Issuance of Long-Term Debt
|
2,007 | 95 | ||||||
Short-Term and Long-Term Debt Issuance Expenses
|
(688 | ) | (1,598 | ) | ||||
Payments for Retirement of Long-Term Debt
|
(368 | ) | (58,693 | ) | ||||
Dividends Paid and Other Distributions
|
(21,952 | ) | (21,812 | ) | ||||
Net Cash Used in Financing Activities – Continuing Operations
|
(76,218 | ) | (17,854 | ) | ||||
Net Cash Provided by Financing Activities – Discontinued Operations
|
2,552 | 2,241 | ||||||
Net Cash Used in Financing Activities
|
(73,666 | ) | (15,613 | ) | ||||
Cash and Cash Equivalents at Beginning of Period – Discontinued Operations
|
-- | (609 | ) | |||||
Effect of Foreign Exchange Rate Fluctuations on Cash – Discontinued Operations
|
(324 | ) | 136 | |||||
Net Change in Cash and Cash Equivalents
|
-- | (5,041 | ) | |||||
Cash and Cash Equivalents at Beginning of Period
|
-- | 5,041 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | -- | $ | -- |