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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99.1
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Press Release issued May 7, 2012.
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OTTER TAIL CORPORATION
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|||
Date: May 8, 2012
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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 May 7, 2012
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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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May 7, 2012
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Financial Media
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●
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Consolidated net income and diluted earnings from continuing operations totaled $9.5 million and $0.26 per share, respectively, compared with $5.2 million and $0.14 per share for the first quarter of 2011
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●
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Consolidated net income and diluted earnings from continuing and discontinued operations totaled $7.2 million and $0.20 per share, respectively, compared with $5.7 million and $0.15 per share for the first quarter of 2011
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●
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Consolidated revenues from continuing operations were $277.6 million compared with $249.1 million for the first quarter of 2011
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●
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On February 29, 2012 the corporation completed the sale of DMS Health Technologies, Inc. (DMS)
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●
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a $4.4 million decrease in revenues, mainly due to a 7.8% reduction in retail kilowatt-hour (kwh) sales resulting from significantly milder weather in the first quarter of 2012 as heating degree days were down 27.8% compared with the first quarter of 2011,
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●
|
a $2.8 million decrease in revenue related to the recovery of fuel and purchased power costs, and
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●
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a $1.0 million reduction in accrued conservation program cost recovery revenues related to the timing of the recognition of conservation costs recovered through the Minnesota Conservation Improvement Program surcharge,
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●
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a $3.0 million increase in revenue related to revised winter rates implemented in Minnesota in October 2011 on finalization of Otter Tail Power Company’s 2010 general rate case,
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●
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a $2.3 million revenue reduction in the first quarter of 2011 related to accruing a refund of a portion of revenues collected under interim rates during the most recent Minnesota rate case, and
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●
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a $1.4 million increase in transmission costs recovery rider revenues as a result of increased investment in transmission assets.
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●
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a $2.1 million increase in transmission tariff revenues due, in part, to revenues from CapX2020 transmission project investments,
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●
|
a reduction in revenue related to the sale of access rights through an Otter Tail Energy Services Company (OTESCO) wind farm development site in the first quarter of 2011 for $1.1 million, and
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●
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a $0.6 million reduction in revenues from steam sales at Big Stone Plant to a nearby ethanol plant as a result of the customer generating more of its own steam from its natural gas fired boiler in response to low natural gas prices.
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●
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a $0.9 million increase in employee benefit expenses mainly due to increases in pension and retirement health benefit costs resulting from a reduction in the discount rate related to projected benefit obligations,
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●
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a $0.8 million increase in MISO Schedule 26 transmission service charges,
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●
|
a $0.4 million increase in vegetation management expenses, and
|
●
|
bad debt expense was $0.4 million less in the first quarter of 2011 as a result of OTP adjusting its allowance for uncollectible accounts,
|
●
|
a $1.0 million reduction in incurred conservation program costs, commensurate with a reduction in accrued revenues related to the future recovery of those costs.
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●
|
At BTD, revenues increased $11.9 million and net income increased $0.8 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 increased by $0.6 million and net income increased $0.3 million as a result of increased sales of industrial products.
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●
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At ShoreMaster revenues decreased $1.8 million and its earnings declined $1.6 million, resulting in a net loss for the quarter. ShoreMaster’s revenue decrease reflects a $2.5 million decrease in commercial sales, partially offset by a $0.7 million increase in residential sales. Despite the decrease in sales, ShoreMaster’s cost of goods sold decreased by only $0.6 million as a result of incurring $0.5 million in costs in the first quarter of 2012 related to the closure of its Camdenton, Missouri plant and the relocation of Camdenton’s commercial production operations to ShoreMaster’s Fergus Falls, Minnesota and St. Augustine, Florida facilities. ShoreMaster’s operating expenses increased $1.3 million, reflecting the following:
|
o
|
a first quarter 2011 expense reduction of $0.7 million from the collection of a receivable written off as uncollectible prior to 2011,
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o
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a $0.4 million increase in expenses for outside professional services, and
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o
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a $0.2 million gain on the sale of an asset in the first quarter 2011.
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For the Three Months Ended March 31, 2012
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||||||||||||||||||||
(in thousands)
|
Wylie
|
Aviva
|
DMS*
|
Intercompany Transactions Adjustment
|
Total
|
|||||||||||||||
Operating Revenues
|
$ | -- | $ | 1 | $ | 16,362 | $ | (11 | ) | $ | 16,352 | |||||||||
Operating Expenses
|
159 | 13 | 14,741 | (11 | ) | 14,902 | ||||||||||||||
Operating (Loss) Income
|
(159 | ) | (12 | ) | 1,621 | -- | 1,450 | |||||||||||||
Interest Charges
|
-- | -- | 279 | (132 | ) | 147 | ||||||||||||||
Other Income
|
-- | -- | 122 | -- | 122 | |||||||||||||||
Income Tax (Benefit) Expense
|
(64 | ) | (5 | ) | 600 | 53 | 584 | |||||||||||||
Net (Loss) Income from Operations
|
(95 | ) | (7 | ) | 864 | 79 | 841 | |||||||||||||
Loss on Disposition Before Taxes
|
(44 | ) | -- | (3,179 | ) | -- | (3,223 | ) | ||||||||||||
Income Tax Benefit on Disposition
|
(18 | ) | -- | (116 | ) | -- | (134 | ) | ||||||||||||
Net Loss on Disposition
|
(26 | ) | -- | (3,063 | ) | -- | (3,089 | ) | ||||||||||||
Net (Loss) Income
|
$ | (121 | ) | $ | (7 | ) | $ | (2,199 | ) | $ | 79 | $ | (2,248 | ) | ||||||
*A $39.1 million net-of-tax impairment charge was recorded at DMS in the fourth quarter of 2011, based on the difference between the corporation’s investment in DMS prior to the impairment and the indicated selling price on December 31, 2011.
|
For the Three Months Ended March 31, 2011
|
||||||||||||||||||||||||
(in thousands)
|
IPH
|
Wylie
|
Aviva
|
DMS
|
Intercompany Transactions Adjustment
|
Total
|
||||||||||||||||||
Operating Revenues
|
$ | 20,645 | $ | 14,609 | $ | 952 | $ | 22,495 | $ | (523 | ) | $ | 58,178 | |||||||||||
Operating Expenses
|
17,617 | 17,535 | 1,503 | 21,412 | (523 | ) | 57,544 | |||||||||||||||||
Operating Income (Loss)
|
3,028 | (2,926 | ) | (551 | ) | 1,083 | -- | 634 | ||||||||||||||||
Interest Charges
|
8 | 213 | 96 | 400 | (697 | ) | 20 | |||||||||||||||||
Other (Deductions) Income
|
(146 | ) | 11 | (4 | ) | 298 | (2 | ) | 157 | |||||||||||||||
Income Tax Expense (Benefit)
|
1,112 | (1,249 | ) | (260 | ) | 409 | 276 | 288 | ||||||||||||||||
Net Income (Loss)
|
$ | 1,762 | $ | (1,879 | ) | $ | (391 | ) | $ | 572 | $ | 419 | $ | 483 |
Original 2012 Earnings Per Share
Guidance Range
|
Updated 2012 Earnings Per Share
Guidance Range
|
|||||
Low
|
High
|
Low
|
High
|
|||
Electric
|
$1.05
|
$1.10
|
Electric
|
$1.00
|
$1.05
|
|
Wind Energy
|
($0.15)
|
$0.00
|
Wind Energy
|
($0.10)
|
$0.00
|
|
Manufacturing
|
$0.30
|
$0.35
|
Manufacturing
|
$0.36
|
$0.41
|
|
Construction
|
$0.02
|
$0.07
|
Construction
|
($0.13)
|
($0.08)
|
|
Plastics
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$0.06
|
$0.11
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Plastics
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$0.18
|
$0.23
|
|
Corporate
|
($0.28)
|
($0.23)
|
Corporate
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($0.26)
|
($0.21)
|
|
Total – Continuing Operations
|
$1.00
|
$1.40
|
Total – Continuing Operations
|
$1.05
|
$1.40
|
|
Earnings – Discontinued Operations
|
$0.00
|
$0.03
|
||||
Loss on Sale of Discontinued Operations
|
($0.10)
|
($0.08)
|
||||
Total
|
$0.95
|
$1.35
|
●
|
The corporation now expects net income to decrease slightly in its Electric segment in 2012 compared with 2011 as a result of the extremely mild weather in the first quarter of 2012. Anticipated increases in rider recovery revenues and capitalized interest costs on higher levels of construction expenditures are expected to be partially offset by lower conservation improvement program incentives and increases in operating and maintenance expenses due to higher postretirement benefit costs.
|
●
|
The corporation expects improvement in operations of its Wind Energy segment to continue in 2012. DMI has been able to stabilize production, improve productivity, align headcount with current production demands and eliminate the need for outsourced quality assurance staffing. Order backlog will continue to support current plant staffing at DMI’s U.S. plants. DMI continues to experience pricing pressure on new orders due to overcapacity in the U.S. market and significantly lower steel costs available to Asian manufacturers. Backlog in the Wind Energy segment is $114 million for 2012 compared with $134 million one year ago.
|
●
|
The corporation expects earnings from its Manufacturing segment to improve beyond its initial expectations for 2012 due to increased order volume at BTD in excess of initial 2012 projections, continuing improvement in economic conditions in the industries BTD serves, and enhanced performance from T.O. Plastics. Consistent with the corporation’s initial expectations, ShoreMaster’s earnings are still expected to improve over 2011 earnings as a result of bringing costs in line with current revenue levels, improved performance in residential operations and the closure of ShoreMaster’s Camdenton, Missouri plant. Camdenton’s commercial production operations were consequently relocated to ShoreMaster’s Fergus Falls, Minnesota and St. Augustine, Florida facilities. Backlog in place for the manufacturing companies is $111 million for 2012 compared with $87 million one year ago.
|
●
|
The corporation now expects a net loss from its Construction segment in 2012 as Foley continued to experience cost overruns on certain major projects in the first quarter of 2012. Backlog in place for the construction businesses is $83 million for 2012 compared with $105 million one year ago.
|
●
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The corporation now expects an increase in Plastics segment net income in 2012 based on the strength of its first quarter performance and current market conditions.
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●
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Corporate general and administrative costs are expected to remain relatively flat between the years.
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●
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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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●
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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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●
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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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●
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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, from time to time, sell one or more of its nonelectric businesses to provide capital to fund investments in its electric utility business or for other corporate purposes, which could result in the recognition of a loss on the sale of any business sold.
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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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●
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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 made a $10.0 million discretionary contribution to its defined benefit pension plan in January 2012. The corporation could be required to contribute additional capital to the pension plan in the future if the market value of pension plan assets significantly declines, 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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●
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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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●
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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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●
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Economic conditions could negatively impact the corporation’s businesses.
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●
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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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●
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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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●
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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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Significant warranty claims and remediation costs in excess of amounts normally reserved for such items could adversely affect the corporation’s results of operations and financial condition.
|
●
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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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The corporation relies on its information systems to conduct its business, and failure to protect these systems against security breaches could adversely affect its business and results of operations. Additionally, if these systems fail or become unavailable for any significant period of time, the corporation’s business could be harmed.
|
●
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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.
|
●
|
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.
|
●
|
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.
|
●
|
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. The Federal Production Tax Credit is currently scheduled to expire on December 31, 2012.
|
●
|
The corporation’s wind tower manufacturing business is substantially dependent on a few significant customers.
|
●
|
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. In the fourth quarter of 2011 DMI idled its wind tower production plant in Fort Erie, Ontario. 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.
|
●
|
Competition from foreign and domestic manufacturers, cost management in a fixed price contract project environment, the price and availability of raw materials, 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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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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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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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.
|
Otter Tail Corporation
|
||||||||
Consolidated Statements of Income
|
||||||||
In thousands, except share and per share amounts
|
||||||||
(not audited)
|
||||||||
Quarter Ended
March 31,
|
||||||||
2012
|
2011
|
|||||||
Operating Revenues by Segment
|
||||||||
Electric
|
$ | 90,003 | $ | 91,596 | ||||
Wind Energy
|
52,102 | 46,988 | ||||||
Manufacturing
|
65,994 | 55,361 | ||||||
Construction
|
35,617 | 37,515 | ||||||
Plastics
|
34,875 | 18,478 | ||||||
Corporate Revenue and Intersegment Eliminations
|
(1,002 | ) | (790 | ) | ||||
Total Operating Revenues
|
277,589 | 249,148 | ||||||
Operating Expenses
|
||||||||
Fuel and Purchased Power
|
29,582 | 31,954 | ||||||
Nonelectric Cost of Goods Sold (depreciation included below)
|
162,990 | 140,339 | ||||||
Electric Operating and Maintenance Expense
|
32,630 | 31,117 | ||||||
Nonelectric Operating and Maintenance Expense
|
17,491 | 13,076 | ||||||
Asset Impairment Charge
|
432 | -- | ||||||
Depreciation and Amortization
|
17,053 | 17,106 | ||||||
Total Operating Expenses
|
260,178 | 233,592 | ||||||
Operating Income (Loss) by Segment
|
||||||||
Electric
|
16,959 | 18,486 | ||||||
Wind Energy
|
858 | (5,886 | ) | |||||
Manufacturing
|
5,001 | 5,654 | ||||||
Construction
|
(6,790 | ) | (325 | ) | ||||
Plastics
|
5,752 | (266 | ) | |||||
Corporate
|
(4,369 | ) | (2,107 | ) | ||||
Total Operating Income
|
17,411 | 15,556 | ||||||
Interest Charges
|
8,616 | 9,476 | ||||||
Other Income
|
993 | 371 | ||||||
Income Tax Expense – Continuing Operations
|
297 | 1,238 | ||||||
Net Income (Loss) by Segment – Continuing Operations
|
||||||||
Electric
|
11,016 | 11,142 | ||||||
Wind Energy
|
(690 | ) | (6,232 | ) | ||||
Manufacturing
|
2,211 | 2,658 | ||||||
Construction
|
(4,171 | ) | (325 | ) | ||||
Plastics
|
3,253 | (374 | ) | |||||
Corporate
|
(2,128 | ) | (1,656 | ) | ||||
Net Income from Continuing Operations
|
9,491 | 5,213 | ||||||
Discontinued Operations
|
||||||||
Income - net of Income Tax Expense of $584 and $288 for the respective periods
|
841 | 483 | ||||||
Loss on Disposition - net of Income Tax (Benefit) of ($134) in 2012
|
(3,089 | ) | -- | |||||
Net (Loss) Income from Discontinued Operations
|
(2,248 | ) | 483 | |||||
Net Income
|
7,243 | 5,696 | ||||||
Preferred Dividend Requirement
|
184 | 184 | ||||||
Balance for Common
|
$ | 7,059 | $ | 5,512 | ||||
Average Number of Common Shares Outstanding
|
||||||||
Basic
|
35,995,179 | 35,876,853 | ||||||
Diluted
|
36,129,192 | 36,081,426 | ||||||
Basic Earnings Per Common Share:
|
||||||||
Continuing Operations (net of preferred dividend requirement)
|
$ | 0.26 | $ | 0.14 | ||||
Discontinued Operations
|
(0.06 | ) | 0.01 | |||||
$ | 0.20 | $ | 0.15 | |||||
Diluted Earnings Per Common Share:
|
||||||||
Continuing Operations (net of preferred dividend requirement)
|
$ | 0.26 | $ | 0.14 | ||||
Discontinued Operations
|
(0.06 | ) | 0.01 | |||||
$ | 0.20 | $ | 0.15 |
Otter Tail Corporation
|
||||||||
Consolidated Balance Sheets
|
||||||||
ASSETS
|
||||||||
in thousands
|
||||||||
(not audited)
|
||||||||
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Current Assets
|
||||||||
Cash and Cash Equivalents
|
$ | -- | $ | 14,652 | ||||
Accounts Receivable:
|
||||||||
Trade—Net
|
139,350 | 116,522 | ||||||
Other
|
16,019 | 18,807 | ||||||
Inventories
|
82,959 | 77,983 | ||||||
Deferred Income Taxes
|
12,335 | 12,307 | ||||||
Accrued Utility Revenues
|
12,150 | 13,719 | ||||||
Costs and Estimated Earnings in Excess of Billings
|
66,394 | 67,109 | ||||||
Regulatory Assets
|
24,980 | 27,391 | ||||||
Other
|
20,867 | 21,414 | ||||||
Assets of Discontinued Operations
|
529 | 29,692 | ||||||
Total Current Assets
|
375,583 | 399,596 | ||||||
Investments
|
11,337 | 11,093 | ||||||
Other Assets
|
27,812 | 26,997 | ||||||
Goodwill
|
39,406 | 39,406 | ||||||
Other Intangibles—Net
|
15,038 | 15,286 | ||||||
Deferred Debits
|
||||||||
Unamortized Debt Expense
|
6,125 | 6,458 | ||||||
Regulatory Assets
|
122,481 | 124,137 | ||||||
Total Deferred Debits
|
128,606 | 130,595 | ||||||
Plant
|
||||||||
Electric Plant in Service
|
1,378,651 | 1,372,534 | ||||||
Nonelectric Operations
|
309,565 | 310,320 | ||||||
Construction Work in Progress
|
63,469 | 54,439 | ||||||
Total Gross Plant
|
1,751,685 | 1,737,293 | ||||||
Less Accumulated Depreciation and Amortization
|
670,349 | 659,744 | ||||||
Net Plant
|
1,081,336 | 1,077,549 | ||||||
Total
|
$ | 1,679,118 | $ | 1,700,522 |
Otter Tail Corporation
|
||||||||
Consolidated Balance Sheets
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
in thousands
|
||||||||
(not audited)
|
||||||||
March 31,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Current Liabilities
|
||||||||
Short-Term Debt
|
$ | 3,311 | $ | -- | ||||
Current Maturities of Long-Term Debt
|
3,000 | 3,033 | ||||||
Accounts Payable
|
121,518 | 115,514 | ||||||
Accrued Salaries and Wages
|
14,279 | 19,043 | ||||||
Accrued Taxes
|
12,149 | 11,841 | ||||||
Derivative Liabilities
|
24,686 | 18,770 | ||||||
Other Accrued Liabilities
|
7,842 | 5,540 | ||||||
Liabilities of Discontinued Operations
|
37 | 13,763 | ||||||
Total Current Liabilities
|
186,822 | 187,504 | ||||||
Pensions Benefit Liability
|
97,719 | 106,818 | ||||||
Other Postretirement Benefits Liability
|
49,013 | 48,263 | ||||||
Other Noncurrent Liabilities
|
26,670 | 19,002 | ||||||
Deferred Credits
|
||||||||
Deferred Income Taxes
|
161,041 | 177,264 | ||||||
Deferred Tax Credits
|
32,868 | 33,182 | ||||||
Regulatory Liabilities
|
69,003 | 69,106 | ||||||
Other
|
540 | 520 | ||||||
Total Deferred Credits
|
263,452 | 280,072 | ||||||
Capitalization
|
||||||||
Long-Term Debt, Net of Current Maturities
|
471,878 | 471,915 | ||||||
Cumulative Preferred Shares
|
15,500 | 15,500 | ||||||
Cumulative Preference Shares
|
-- | -- | ||||||
Common Equity
|
||||||||
Common Shares, Par Value $5 Per Share
|
180,539 | 180,509 | ||||||
Premium on Common Shares
|
253,267 | 253,123 | ||||||
Retained Earnings
|
137,566 | 141,248 | ||||||
Accumulated Other Comprehensive Loss
|
(3,308 | ) | (3,432 | ) | ||||
Total Common Equity
|
568,064 | 571,448 | ||||||
Total Capitalization
|
1,055,442 | 1,058,863 | ||||||
Total
|
$ | 1,679,118 | $ | 1,700,522 |
Consolidated Statements of Cash Flows
|
||||||||
In thousands
|
||||||||
(not audited)
|
||||||||
For the Three Months Ended
March 31,
|
||||||||
In thousands
|
2012
|
2011
|
||||||
Cash Flows from Operating Activities
|
||||||||
Net Income
|
$ | 7,243 | $ | 5,696 | ||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
||||||||
Net Loss from Sale of Discontinued Operations
|
3,089 | -- | ||||||
Income from Discontinued Operations
|
(841 | ) | (483 | ) | ||||
Depreciation and Amortization
|
17,053 | 17,106 | ||||||
Asset Impairment Charge
|
432 | -- | ||||||
Deferred Tax Credits
|
(522 | ) | (659 | ) | ||||
Deferred Income Taxes
|
(7,717 | ) | 4,124 | |||||
Change in Deferred Debits and Other Assets
|
7,872 | 6,266 | ||||||
Discretionary Contribution to Pension Plan
|
(10,000 | ) | -- | |||||
Change in Noncurrent Liabilities and Deferred Credits
|
9,299 | 85 | ||||||
Allowance for Equity (Other) Funds Used During Construction
|
(162 | ) | (116 | ) | ||||
Change in Derivatives Net of Regulatory Deferral
|
281 | (59 | ) | |||||
Stock Compensation Expense – Equity Awards
|
287 | 452 | ||||||
Other—Net
|
321 | 304 | ||||||
Cash (Used for) Provided by Current Assets and Current Liabilities:
|
||||||||
Change in Receivables
|
(20,040 | ) | (30,390 | ) | ||||
Change in Inventories
|
(4,976 | ) | (1,675 | ) | ||||
Change in Other Current Assets
|
(3,034 | ) | (634 | ) | ||||
Change in Payables and Other Current Liabilities
|
5,598 | 1,873 | ||||||
Change in Interest and Income Taxes Receivable/Payable
|
2,251 | 1,245 | ||||||
Net Cash Provided by Continuing Operations
|
6,434 | 3,135 | ||||||
Net Cash Provided by Discontinued Operations
|
1,417 | 3,826 | ||||||
Net Cash Provided by Operating Activities
|
7,851 | 6,961 | ||||||
Cash Flows from Investing Activities
|
||||||||
Capital Expenditures
|
(36,321 | ) | (20,596 | ) | ||||
Proceeds from Disposal of Noncurrent Assets
|
1,824 | 258 | ||||||
Net Increase in Other Investments
|
(1,321 | ) | (598 | ) | ||||
Net Cash Used in Investing Activities - Continuing Operations
|
(35,818 | ) | (20,936 | ) | ||||
Net Proceeds from Sale of Discontinued Operations
|
24,362 | -- | ||||||
Net Cash Used in Investing Activities - Discontinued Operations
|
(11,705 | ) | (2,522 | ) | ||||
Net Cash Used in Investing Activities
|
(23,161 | ) | (23,458 | ) | ||||
Cash Flows from Financing Activities
|
||||||||
Change in Checks Written in Excess of Cash
|
10,546 | (8,463 | ) | |||||
Net Short-Term Borrowings
|
3,311 | 37,486 | ||||||
Proceeds from Issuance of Long-Term Debt
|
-- | 1,500 | ||||||
Short-Term and Long-Term Debt Issuance Expenses
|
(10 | ) | (686 | ) | ||||
Payments for Retirement of Long-Term Debt
|
(70 | ) | (70 | ) | ||||
Dividends Paid and Other Distributions
|
(11,037 | ) | (11,041 | ) | ||||
Net Cash Provided by Financing Activities - Continuing Operations
|
2,740 | 18,726 | ||||||
Net Cash Used in Financing Activities - Discontinued Operations
|
(1,409 | ) | (1,502 | ) | ||||
Net Cash Provided by Financing Activities
|
1,331 | 17,224 | ||||||
Net Change in Cash and Cash Equivalents – Discontinued Operations
|
(673 | ) | 1,145 | |||||
Effect of Foreign Exchange Rate Fluctuations on Cash – Discontinued Operations
|
-- | (288 | ) | |||||
Net Change in Cash and Cash Equivalents
|
(14,652 | ) | 1,584 | |||||
Cash and Cash Equivalents at Beginning of Period
|
14,652 | -- | ||||||
Cash and Cash Equivalents at End of Period
|
$ | -- | $ | 1,584 |