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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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statement and Exhibits
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(d)
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Exhibits
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99.1 Press Release issued August 6, 2012. |
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OTTER TAIL CORPORATION | ||
Date: August 7, 2012
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By |
/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 6, 2012
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![]() |
Exhibit 99.1
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NEWS RELEASE
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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: August 6, 2012
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Financial Media
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●
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The corporation entered into a nonbinding letter of interest to sell the property, plant and equipment of its wind tower manufacturer, DMI Industries, Inc. (DMI), for $20 million, consistent with its strategy to reduce risk, refocus its diversified portfolio and redeploy capital for utility growth. Based on the letter of interest price, DMI recorded a noncash asset impairment charge of $45.6 million ($27.5 million net-of-tax), or $0.76 per share, in the second quarter of 2012.
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●
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Consolidated net loss from continuing operations totaled $16.9 million, or ($0.48) per diluted share, compared with net income of $5.1 million, or $0.14 per diluted share, for the second quarter of 2011. Excluding the DMI noncash asset impairment charge, consolidated net income from continuing operations totaled $10.6 million, or $0.28 per diluted share, on a non-GAAP basis1.
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●
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Consolidated net loss from continuing and discontinued operations totaled $17.4 million, or ($0.49) per diluted share, compared with net income of $18.8 million, or $0.51 per diluted share for the second quarter of 2011.
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●
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Consolidated revenues from continuing operations were $283.7 million compared with $283.3 million for the second quarter of 2011.
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1 This release includes measures of financial performance and presentations of financial information that are not defined by generally accepted accounting principles (GAAP). Management believes that adjusting for certain one-time costs, such as asset impairment charges, and presenting results on the basis of the expected future classification of continuing and discontinued operations will assist investors in making an evaluation of our performance against prior periods on a comparable basis. Management understands that there are material limitations on the use of non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined in accordance with GAAP.
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Quarter Ended
June 30,
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Year-to-Date
June 30,
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|||||||||||||||
(in thousands, except per share amounts)
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2012
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2011
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2012
|
2011
|
||||||||||||
Net (Loss) Income from Continuing Operations (including DMI) (GAAP)
|
$ | (16,886 | ) | $ | 5,125 | $ | (7,395 | ) | $ | 10,338 | ||||||
DMI Net Loss
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(24,933 | ) | (6,566 | ) | (25,623 | ) | (12,798 | ) | ||||||||
Net Income from Continuing Operations excluding DMI (Non-GAAP)
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$ | 8,047 | $ | 11,691 | $ | 18,228 | $ | 23,136 | ||||||||
Diluted Earnings Per Common Share:
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||||||||||||||||
Continuing Operations (including DMI) (GAAP)
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$ | (0.48 | ) | $ | 0.14 | $ | (0.22 | ) | $ | 0.28 | ||||||
Add back DMI Net Loss
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$ | 0.70 | $ | 0.18 | $ | 0.71 | $ | 0.35 | ||||||||
Continuing Operations – excluding DMI (non-GAAP)
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$ | 0.22 | $ | 0.32 | $ | 0.49 | $ | 0.63 |
(in thousands)
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Line Limit
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In Use On
July 31, 2012
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Restricted due
to Outstanding
Letters of Credit
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Available on
July 31, 2012
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Available on
June 30, 2012
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|||||||||||||||
Otter Tail Corporation Credit Agreement
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$ | 200,000 | $ | 60,000 | $ | 733 | $ | 139,267 | $ | 196,861 | ||||||||||
OTP Credit Agreement
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170,000 | 9,124 | 3,050 | 157,826 | 157,965 | |||||||||||||||
Total
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$ | 370,000 | $ | 69,124 | $ | 3,783 | $ | 297,093 | $ | 354,826 |
●
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a $1.8 million increase in revenue mainly related to rate design changes 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 $1.0 million increase in revenue related to the recovery of an increase in the average cost of fuel and purchased power per kwh incurred to serve retail customers, and
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●
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a $0.7 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 $2.5 million decrease in revenues, mainly due to a 4.6% reduction in retail kwh sales primarily resulting from significantly milder weather in the second quarter of 2012 as heating degree days were down 28.0% compared with the second quarter of 2011.
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●
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a $1.8 million increase in generation plant maintenance costs mainly related to the seven-week scheduled maintenance shutdown of Coyote Station in the second quarter of 2012,
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●
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a $1.2 million increase in employee benefit expenses mainly due to increases in postretirement benefit costs resulting from a reduction in the discount rate related to projected benefit obligations,
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●
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a $0.7 million increase in MISO Schedule 26 transmission service charges, and
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●
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a $0.3 million increase in property tax expense related to higher taxes on electric distribution property and increased investments in transmission property.
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Three Months Ended
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||||||||||||
June 30,
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||||||||||||
(in millions)
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2012
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2011
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Variance
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|||||||||
Net Loss (GAAP)
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$ | (24.9 | ) | $ | (6.6 | ) | $ | (18.3 | ) | |||
Asset Impairment Charge (net-of-tax)
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27.5 | -- | 27.5 | |||||||||
Net Income (Loss) – Excluding Asset Impairment Charge (non-GAAP)
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$ | 2.6 | $ | (6.6 | ) | $ | 9.2 |
●
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At BTD, a revenue increase of $7.1 million due to higher sales volume on improved customer demand was offset by increases of $6.3 million in cost of goods sold and $0.7 million in operating expenses, resulting in no change in net income at BTD between the quarters.
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●
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At T.O. Plastics, revenues increased $0.8 million and net income increased $0.4 million as a result of increased sales of industrial and medical packaging products and more selective bidding practices.
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●
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At ShoreMaster revenues decreased $1.6 million and its earnings declined $0.7 million, resulting in a net loss for the quarter. ShoreMaster’s revenue and net income decreased as a result of a $1.3 million decrease in commercial sales combined with a $0.3 million decrease in residential sales.
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Three Months Ended June 30,
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||||||||
(in thousands)
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2012
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2011
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||||||
Operating Revenues
|
$ | -- | $ | 41,282 | ||||
Operating Expenses
|
26 | 41,799 | ||||||
Operating Loss
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(26 | ) | (517 | ) | ||||
Interest Charges
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-- | 11 | ||||||
Other Income
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-- | 1,259 | ||||||
Income Tax (Benefit) Expense
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(11 | ) | 280 | |||||
Net (Loss) Income from Operations
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(15 | ) | 451 | |||||
(Loss) Gain on Disposition Before Taxes
|
(490 | ) | 16,767 | |||||
Income Tax (Benefit) Expense on Disposition
|
(35 | ) | 3,515 | |||||
Net (Loss) Gain on Disposition
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(455 | ) | 13,252 | |||||
Net (Loss) Income
|
$ | (470 | ) | $ | 13,703 |
Previous 2012 Earnings Per Share
Guidance Range
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Updated 2012 Earnings Per Share
Guidance Range
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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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$ | 1.00 | $ | 1.05 |
Electric
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$ | 1.00 | $ | 1.05 | |||||||||
Wind Energy
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$ | (0.10 | ) | $ | 0.00 |
Wind Energy
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$ | 0.00 | $ | 0.00 | ||||||||
Manufacturing
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$ | 0.36 | $ | 0.41 |
Manufacturing
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$ | 0.25 | $ | 0.30 | |||||||||
Construction
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$ | (0.13 | ) | $ | (0.08 | ) |
Construction
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$ | (0.18 | ) | $ | (0.13 | ) | |||||
Plastics
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$ | 0.18 | $ | 0.23 |
Plastics
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$ | 0.24 | $ | 0.29 | |||||||||
Corporate
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$ | (0.26 | ) | $ | (0.21 | ) |
Corporate – Recurring Costs
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$ | (0.25 | ) | $ | (0.20 | ) | |||||
Subtotal
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$ | 1.06 | $ | 1.31 | ||||||||||||||
Corporate – Debt Extinguishment
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$ | (0.22 | ) | $ | (0.22 | ) | ||||||||||||
Total – Continuing Operations
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$ | 1.05 | $ | 1.40 |
Total – Continuing Operations
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$ | 0.84 | $ | 1.09 | |||||||||
Discontinued Operations:
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Discontinued Operations:
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|||||||||||||||||
Net Earnings
|
$ | 0.00 | $ | 0.03 |
Net Loss
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$ | (0.09 | ) | $ | (0.04 | ) | |||||||
DMI Asset Impairment Charge
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$ | (0.81 | ) | $ | (0.76 | ) | ||||||||||||
Loss on Sale of Disc. Ops.
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$ | (0.10 | ) | $ | (0.08 | ) |
Loss on Sale of Discontinued Operations
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$ | (0.10 | ) | $ | (0.08 | ) | |||||
Total
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$ | 0.95 | $ | 1.35 |
Total
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$ | (0.16 | ) | $ | 0.21 |
●
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The corporation expects net income in its Electric segment to be in the same range as previous guidance.
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●
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The corporation expects to complete a sale of its Wind Energy segment assets by early 2013 and, therefore, expects DMI’s 2012 results to be included in discontinued operations. 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 is expected to continue to generate revenues, earnings and cash flows for the remainder of 2012 but DMI’s second quarter 2012 noncash asset impairment charge will have a negative impact on consolidated results in 2012. Backlog in the Wind Energy segment is $70 million for the remainder of 2012.
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●
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The corporation now expects 2012 earnings from its Manufacturing segment to be lower than previous guidance primarily due to lower earnings at ShoreMaster and BTD. Continued reductions in commercial revenues at ShoreMaster along with higher than expected commercial operating expenses are the primary reason for the revised outlook. BTD expects lower earnings compared to previous guidance due to reduction in sales volume at its Illinois plant and lower scrap prices for steel in the second half of 2012 compared with the first half of 2012. Backlog in place for the manufacturing companies is $76 million for 2012 compared with $62 million one year ago.
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●
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The corporation now expects a larger net loss from its Construction segment in 2012 as Foley continued to experience cost overruns on certain major projects in the first half of 2012. Backlog in place for the construction businesses is $73 million for 2012 compared with $84 million one year ago.
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●
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The corporation is increasing the earning guidance for its Plastics segment net income in 2012, compared with previous guidance, based on the strength of its performance in the first half of 2012 and current market conditions.
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Corporate general and administrative costs are expected to remain relatively flat between the years.
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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, 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. The sale of any of the corporation’s businesses also exposes the corporation to additional risks associated with indemnification obligations under the applicable sales agreements and any related disputes.
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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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●
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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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●
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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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●
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The corporation is subject to risks associated with energy markets.
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●
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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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●
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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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●
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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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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 value of DMI’s fixed assets and result in an additional impairment of these assets if the corporation is unable to agree to terms related to the June 2012 nonbinding letter of interest to sell these assets. The Federal Production Tax Credit is currently scheduled to expire on December 31, 2012.
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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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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 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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●
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The corporation’s Plastics segment is highly dependent on a limited number of vendors for PVC resin, many of which are located in the Gulf Coast regions, and a limited supply of resin. The loss of a key vendor, or an interruption or delay in the supply of PVC resin, could result in reduced sales or increased costs for this segment.
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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.
|
Otter Tail Corporation
|
||||||||||||||||
Consolidated Statements of Income
|
||||||||||||||||
In thousands, except share and per share amounts
|
||||||||||||||||
(not audited)
|
||||||||||||||||
Quarter Ended June 30,
|
Year-to-Date June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Operating Revenues by Segment
|
||||||||||||||||
Electric
|
$ | 78,963 | $ | 78,031 | $ | 168,966 | $ | 169,627 | ||||||||
Wind Energy
|
62,618 | 55,025 | 114,720 | 102,013 | ||||||||||||
Manufacturing
|
63,581 | 57,320 | 129,575 | 112,681 | ||||||||||||
Construction
|
37,934 | 49,133 | 73,551 | 86,648 | ||||||||||||
Plastics
|
41,490 | 44,373 | 76,365 | 62,851 | ||||||||||||
Corporate Revenue and Intersegment Eliminations
|
(877 | ) | (584 | ) | (1,879 | ) | (1,374 | ) | ||||||||
Total Operating Revenues
|
283,709 | 283,298 | 561,298 | 532,446 | ||||||||||||
Operating Expenses
|
||||||||||||||||
Fuel and Purchased Power
|
24,783 | 24,974 | 54,365 | 56,928 | ||||||||||||
Nonelectric Cost of Goods Sold (depreciation included below)
|
167,612 | 179,241 | 330,602 | 319,580 | ||||||||||||
Electric Operating and Maintenance Expense
|
35,077 | 31,104 | 67,707 | 62,221 | ||||||||||||
Nonelectric Operating and Maintenance Expense
|
17,189 | 17,014 | 34,680 | 30,090 | ||||||||||||
Asset Impairment Charge
|
45,573 | -- | 46,005 | -- | ||||||||||||
Depreciation and Amortization
|
17,118 | 17,552 | 34,171 | 34,658 | ||||||||||||
Total Operating Expenses
|
307,352 | 269,885 | 567,530 | 503,477 | ||||||||||||
Operating Income (Loss) by Segment
|
||||||||||||||||
Electric
|
8,656 | 11,933 | 25,615 | 30,419 | ||||||||||||
Wind Energy
|
(39,227 | ) | (6,901 | ) | (38,369 | ) | (12,787 | ) | ||||||||
Manufacturing
|
5,354 | 5,579 | 10,355 | 11,233 | ||||||||||||
Construction
|
(2,558 | ) | 515 | (9,348 | ) | 190 | ||||||||||
Plastics
|
7,120 | 5,853 | 12,872 | 5,587 | ||||||||||||
Corporate
|
(2,988 | ) | (3,566 | ) | (7,357 | ) | (5,673 | ) | ||||||||
Total Operating (Loss) Income
|
(23,643 | ) | 13,413 | (6,232 | ) | 28,969 | ||||||||||
Interest Charges
|
8,477 | 9,138 | 17,093 | 18,614 | ||||||||||||
Other Income
|
741 | 765 | 1,734 | 1,136 | ||||||||||||
Income Tax (Benefit) Expense – Continuing Operations
|
(14,493 | ) | (85 | ) | (14,196 | ) | 1,153 | |||||||||
Net Income (Loss) by Segment – Continuing Operations
|
||||||||||||||||
Electric
|
5,191 | 7,386 | 16,207 | 18,528 | ||||||||||||
Wind Energy
|
(24,933 | ) | (6,566 | ) | (25,623 | ) | (12,798 | ) | ||||||||
Manufacturing
|
2,420 | 2,769 | 4,631 | 5,427 | ||||||||||||
Construction
|
(1,756 | ) | 184 | (5,927 | ) | (141 | ) | |||||||||
Plastics
|
4,067 | 3,312 | 7,320 | 2,938 | ||||||||||||
Corporate
|
(1,875 | ) | (1,960 | ) | (4,003 | ) | (3,616 | ) | ||||||||
Net (Loss) Income from Continuing Operations
|
(16,886 | ) | 5,125 | (7,395 | ) | 10,338 | ||||||||||
Discontinued Operations
|
||||||||||||||||
(Loss) Income - net of Income Tax (Benefit) Expense
of ($11), $280, $573 and $568 for the respective periods
|
(15 | ) | 451 | 826 | 934 | |||||||||||
(Loss) Gain on Disposition - net of Income Tax (Benefit) Expense
of ($35), $3,515, ($169) and $3,515 for the respective periods
|
(455 | ) | 13,252 | (3,544 | ) | 13,252 | ||||||||||
Net (Loss) Income from Discontinued Operations
|
(470 | ) | 13,703 | (2,718 | ) | 14,186 | ||||||||||
Net (Loss) Income
|
(17,356 | ) | 18,828 | (10,113 | ) | 24,524 | ||||||||||
Preferred Dividend Requirement and Other Adjustments
|
184 | 506 | 368 | 690 | ||||||||||||
Balance for Common
|
$ | (17,540 | ) | $ | 18,322 | $ | (10,481 | ) | $ | 23,834 | ||||||
Average Number of Common Shares Outstanding
|
||||||||||||||||
Basic
|
36,031,447 | 35,926,124 | 36,013,313 | 35,901,489 | ||||||||||||
Diluted
|
36,031,447 | 36,163,805 | 36,013,313 | 36,139,170 | ||||||||||||
Basic Earnings Per Common Share:
|
||||||||||||||||
Continuing Operations
|
$ | (0.48 | ) | $ | 0.14 | $ | (0.22 | ) | $ | 0.28 | ||||||
Discontinued Operations
|
(0.01 | ) | 0.37 | (0.07 | ) | 0.38 | ||||||||||
$ | (0.49 | ) | $ | 0.51 | $ | (0.29 | ) | $ | 0.66 | |||||||
Diluted Earnings Per Common Share:
|
||||||||||||||||
Continuing Operations
|
$ | (0.48 | ) | $ | 0.14 | $ | (0.22 | ) | $ | 0.28 | ||||||
Discontinued Operations
|
(0.01 | ) | 0.37 | (0.07 | ) | 0.38 | ||||||||||
$ | (0.49 | ) | $ | 0.51 | $ | (0.29 | ) | $ | 0.66 |
Otter Tail Corporation
|
||||||||
Consolidated Balance Sheets
|
||||||||
ASSETS
|
||||||||
in thousands
|
||||||||
(not audited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2012
|
2011
|
|||||||
Current Assets
|
||||||||
Cash and Cash Equivalents
|
$ | -- | $ | 14,652 | ||||
Accounts Receivable:
|
||||||||
Trade—Net
|
134,235 | 116,522 | ||||||
Other
|
16,602 | 18,807 | ||||||
Inventories
|
77,368 | 77,983 | ||||||
Deferred Income Taxes
|
12,320 | 12,307 | ||||||
Accrued Utility Revenues
|
11,325 | 13,719 | ||||||
Costs and Estimated Earnings in Excess of Billings
|
75,295 | 67,109 | ||||||
Regulatory Assets
|
25,334 | 27,391 | ||||||
Other
|
16,539 | 21,414 | ||||||
Assets of Discontinued Operations
|
521 | 29,692 | ||||||
Total Current Assets
|
369,539 | 399,596 | ||||||
Investments
|
9,056 | 11,093 | ||||||
Other Assets
|
27,309 | 26,997 | ||||||
Goodwill
|
39,119 | 39,406 | ||||||
Other Intangibles—Net
|
14,793 | 15,286 | ||||||
Deferred Debits
|
||||||||
Unamortized Debt Expense
|
5,783 | 6,458 | ||||||
Regulatory Assets
|
118,672 | 124,137 | ||||||
Total Deferred Debits
|
124,455 | 130,595 | ||||||
Plant
|
||||||||
Electric Plant in Service
|
1,380,680 | 1,372,534 | ||||||
Nonelectric Operations
|
217,391 | 310,320 | ||||||
Construction Work in Progress
|
82,523 | 54,439 | ||||||
Total Gross Plant
|
1,680,594 | 1,737,293 | ||||||
Less Accumulated Depreciation and Amortization
|
630,465 | 659,744 | ||||||
Net Plant
|
1,050,129 | 1,077,549 | ||||||
Total
|
$ | 1,634,400 | $ | 1,700,522 |
Otter Tail Corporation
|
||
Consolidated Balance Sheets
|
||
LIABILITIES AND EQUITY
|
||
in thousands
|
||
(not audited)
|
||
June 30,
|
December 31,
|
|
2012
|
2011
|
|
Current Liabilities
|
||
Short-Term Debt
|
$ 11,274
|
$ --
|
Current Maturities of Long-Term Debt
|
50,170
|
3,033
|
Accounts Payable
|
118,954
|
115,514
|
Accrued Salaries and Wages
|
18,490
|
19,043
|
Accrued Taxes
|
8,664
|
11,841
|
Derivative Liabilities
|
20,339
|
18,770
|
Other Accrued Liabilities
|
5,540
|
5,540
|
Liabilities of Discontinued Operations
|
4
|
13,763
|
Total Current Liabilities
|
233,435
|
187,504
|
Pensions Benefit Liability
|
98,620
|
106,818
|
Other Postretirement Benefits Liability
|
49,356
|
48,263
|
Other Noncurrent Liabilities
|
22,150
|
19,002
|
Deferred Credits
|
||
Deferred Income Taxes
|
152,598
|
177,264
|
Deferred Tax Credits
|
32,345
|
33,182
|
Regulatory Liabilities
|
68,071
|
69,106
|
Other
|
538
|
520
|
Total Deferred Credits
|
253,552
|
280,072
|
Capitalization
|
||
Long-Term Debt, Net of Current Maturities
|
421,829
|
471,915
|
Cumulative Preferred Shares
|
15,500
|
15,500
|
Cumulative Preference Shares
|
--
|
--
|
Common Equity
|
||
Common Shares, Par Value $5 Per Share
|
180,822
|
180,509
|
Premium on Common Shares
|
253,113
|
253,123
|
Retained Earnings
|
109,267
|
141,248
|
Accumulated Other Comprehensive Loss
|
(3,244)
|
(3,432)
|
Total Common Equity
|
539,958
|
571,448
|
Total Capitalization
|
977,287
|
1,058,863
|
Total
|
$ 1,634,400
|
$ 1,700,522
|
Otter Tail Corporation
|
||||||||
Consolidated Statements of Cash Flows
|
||||||||
In thousands
|
||||||||
(not audited)
|
||||||||
For the Six Months Ended
June 30,
|
||||||||
In thousands
|
2012
|
2011
|
||||||
Cash Flows from Operating Activities
|
||||||||
Net (Loss) Income
|
$ | (10,113 | ) | $ | 24,524 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
||||||||
Net Loss (Gain) from Sale of Discontinued Operations
|
3,544 | (13,252 | ) | |||||
Income from Discontinued Operations
|
(826 | ) | (934 | ) | ||||
Depreciation and Amortization
|
34,171 | 34,658 | ||||||
Asset Impairment Charge
|
46,005 | -- | ||||||
Deferred Tax Credits
|
(1,045 | ) | (1,281 | ) | ||||
Deferred Income Taxes
|
(9,632 | ) | 5,650 | |||||
Change in Deferred Debits and Other Assets
|
9,960 | 7,648 | ||||||
Discretionary Contribution to Pension Plan
|
(10,000 | ) | -- | |||||
Change in Noncurrent Liabilities and Deferred Credits
|
6,095 | 1,212 | ||||||
Allowance for Equity (Other) Funds Used During Construction
|
(378 | ) | (292 | ) | ||||
Change in Derivatives Net of Regulatory Deferral
|
748 | 45 | ||||||
Stock Compensation Expense – Equity Awards
|
612 | 921 | ||||||
Other—Net
|
453 | 654 | ||||||
Cash (Used for) Provided by Current Assets and Current Liabilities:
|
||||||||
Change in Receivables
|
(15,508 | ) | (30,298 | ) | ||||
Change in Inventories
|
615 | (6,235 | ) | |||||
Change in Other Current Assets
|
(10,917 | ) | (2,743 | ) | ||||
Change in Payables and Other Current Liabilities
|
6,905 | 8,967 | ||||||
Change in Interest and Income Taxes Receivable/Payable
|
(6,549 | ) | (162 | ) | ||||
Net Cash Provided by Continuing Operations
|
44,140 | 29,082 | ||||||
Net Cash Provided by Discontinued Operations
|
1,377 | 11,655 | ||||||
Net Cash Provided by Operating Activities
|
45,517 | 40,737 | ||||||
Cash Flows from Investing Activities
|
||||||||
Capital Expenditures
|
(69,443 | ) | (39,777 | ) | ||||
Proceeds from Disposal of Noncurrent Assets
|
5,560 | 1,233 | ||||||
Net (Increase) Decrease in Other Investments
|
(268 | ) | 937 | |||||
Net Cash Used in Investing Activities - Continuing Operations
|
(64,151 | ) | (37,607 | ) | ||||
Net Proceeds from Sale of Discontinued Operations
|
24,278 | 84,363 | ||||||
Net Cash Used in Investing Activities - Discontinued Operations
|
(11,705 | ) | (13,503 | ) | ||||
Net Cash (Used in) Provided by Investing Activities
|
(51,578 | ) | 33,253 | |||||
Cash Flows from Financing Activities
|
||||||||
Change in Checks Written in Excess of Cash
|
7,352 | (5,627 | ) | |||||
Net Short-Term Borrowings (Repayments)
|
11,274 | (46,777 | ) | |||||
Payments for Retirement of Common Stock and Common Stock Issuance Expenses
|
(196 | ) | (152 | ) | ||||
Proceeds from Issuance of Long-Term Debt
|
-- | 2,007 | ||||||
Short-Term and Long-Term Debt Issuance Expenses
|
(10 | ) | (688 | ) | ||||
Payments for Retirement of Long-Term Debt
|
(2,949 | ) | (167 | ) | ||||
Dividends Paid and Other Distributions
|
(21,980 | ) | (21,952 | ) | ||||
Net Cash Used in Financing Activities - Continuing Operations
|
(6,509 | ) | (73,356 | ) | ||||
Net Cash Used in Financing Activities - Discontinued Operations
|
(1,409 | ) | (310 | ) | ||||
Net Cash Used in Financing Activities
|
(7,918 | ) | (73,666 | ) | ||||
Net Change in Cash and Cash Equivalents – Discontinued Operations
|
(673 | ) | -- | |||||
Effect of Foreign Exchange Rate Fluctuations on Cash – Discontinued Operations
|
-- | (324 | ) | |||||
Net Change in Cash and Cash Equivalents
|
(14,652 | ) | -- | |||||
Cash and Cash Equivalents at Beginning of Period
|
14,652 | -- | ||||||
Cash and Cash Equivalents at End of Period
|
$ | -- | $ | -- |