EX-99 5 exhibit99.txt ALLETE FIRST QUARTER 2007 EARNINGS RELEASE EXHIBIT 99 ALLETE First Quarter 2007 Form 10-Q [ALLETE LOGO] For Release: May 4, 2007 CONTACT: Eric Olson 218-723-3947 eolson@allete.com INVESTOR Tim Thorp CONTACT: 218-723-3953 tthorp@allete.com NEWS ALLETE'S EPS CLIMBS 37% OVER FIRST QUARTER 2006 ----------------------------------------------- ALLETE, Inc. (NYSE: ALE) today reported first quarter 2007 earnings of 93 cents per share, a 37 percent increase over the 68 cents per share recorded in the first quarter of 2006. ALLETE's net income in the first quarter of 2007 was $26.3 million on operating revenue of $205.3 million, compared to net income of $18.8 million on operating revenue of $192.5 million in the first quarter of 2006. "We're pleased to begin the year on such a positive note," said Don Shippar, ALLETE's Chairman, President and Chief Executive Officer. "These results provide a solid foundation for what we expect will be another strong year financially. They're in line with our expectation of earning between $2.95 and $3.05 per share in 2007." ALLETE's Regulated Utility net income climbed from $13.0 million in the first quarter of 2006 to $18.8 million in 2007. The increase was due, in part, to a ten percent jump in heating degree days from 2006 to 2007, which increased electricity sales to residential, commercial and municipal customers. Sales to industrial customers remained strong. Nonregulated Energy Operations net income of $2.2 million in the first quarter of 2007 included a $1.2 million gain from a sale of property in northeastern Minnesota. Net income from ALLETE's investment in ATC, which commenced in May of 2006, continued to grow, to $1.8 million during the first quarter of 2007. As of March 31, 2007, ALLETE had an investment balance of $63.7 million in ATC. ALLETE's Real Estate segment recorded net income of $3.1 million during the quarter. The timing of real estate closings varies from quarter to quarter. As of March 31, 2007, ALLETE Properties had $111.1 million in sales under contract. ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE provides energy services in the upper Midwest and has significant real estate holdings in Florida. More information about the company is available on ALLETE's Web site at www.allete.com. -------------- THE STATEMENTS CONTAINED IN THIS RELEASE AND STATEMENTS THAT ALLETE MAY MAKE ORALLY IN CONNECTION WITH THIS RELEASE THAT ARE NOT HISTORICAL FACTS, ARE FORWARD-LOOKING STATEMENTS. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS INVOLVE RISKS AND UNCERTAINTIES, AND INVESTORS ARE DIRECTED TO THE RISKS DISCUSSED IN DOCUMENTS FILED BY ALLETE WITH THE SECURITIES AND EXCHANGE COMMISSION. ### ALLETE NEWS RELEASE PAGE 2 -------------------------------------------------------------------------------- ALLETE, INC. CONSOLIDATED STATEMENT OF INCOME FOR THE PERIODS ENDED MARCH 31, 2007 AND 2006 Millions Except Per Share Amounts
QUARTER ENDED 2007 2006 ------------------------------------------------------------------------------------------------------------------------------------ OPERATING REVENUE $205.3 $192.5 ------------------------------------------------------------------------------------------------------------------------------------ OPERATING EXPENSES Fuel and Purchased Power 77.7 69.4 Operating and Maintenance 74.6 74.5 Depreciation 11.7 12.2 ------------------------------------------------------------------------------------------------------------------------------------ Total Operating Expenses 164.0 156.1 ------------------------------------------------------------------------------------------------------------------------------------ OPERATING INCOME FROM CONTINUING OPERATIONS 41.3 36.4 ------------------------------------------------------------------------------------------------------------------------------------ OTHER INCOME (EXPENSE) Interest Expense (6.3) (6.4) Other 7.5 1.7 ------------------------------------------------------------------------------------------------------------------------------------ Total Other Income (Expense) 1.2 (4.7) ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM CONTINUING OPERATIONS BEFORE MINORITY INTEREST AND INCOME TAXES 42.5 31.7 MINORITY INTEREST 0.1 1.3 ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 42.4 30.4 INCOME TAX EXPENSE 16.1 11.6 ------------------------------------------------------------------------------------------------------------------------------------ INCOME FROM CONTINUING OPERATIONS 26.3 18.8 INCOME FROM DISCONTINUED OPERATIONS - NET OF TAX - - ------------------------------------------------------------------------------------------------------------------------------------ NET INCOME $ 26.3 $ 18.8 ------------------------------------------------------------------------------------------------------------------------------------ AVERAGE SHARES OF COMMON STOCK Basic 28.1 27.6 Diluted 28.1 27.7 ------------------------------------------------------------------------------------------------------------------------------------ BASIC AND DILUTED EARNINGS PER SHARE OF COMMON STOCK Continuing Operations $0.93 $0.68 Discontinued Operations - - ------------------------------------------------------------------------------------------------------------------------------------ $0.93 $0.68 ------------------------------------------------------------------------------------------------------------------------------------ DIVIDENDS PER SHARE OF COMMON STOCK $0.4100 $0.3625 ------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET Millions
MAR. 31, DEC. 31, 2007 2006 ---------------------------------------------------------------------- ASSETS Cash and Short-Term Investments $ 128.5 $ 149.3 Other Current Assets 153.3 138.4 Property, Plant and Equipment 933.0 921.6 Investments 206.7 189.1 Other 138.6 135.0 ---------------------------------------------------------------------- TOTAL ASSETS $1,560.1 $1,533.4 ---------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $ 145.4 $ 143.5 Long-Term Debt 359.3 359.8 Other Liabilities 367.7 364.3 Shareholders' Equity 687.7 665.8 ---------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,560.1 $1,533.4 ----------------------------------------------------------------------
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QUARTER ENDED MARCH 31, ALLETE, INC. 2007 2006 ------------------------------------------------------------------------------------------------------------------------------------ INCOME (LOSS) Millions Regulated Utility $18.8 $13.0 Nonregulated Energy Operations 2.2 0.9 ATC 1.8 - Real Estate 3.1 5.0 Other 0.4 (0.1) ------------------------------------------------------------------------------------------------------------------------------------ Income from Continuing Operations 26.3 18.8 Income from Discontinued Operations - - ------------------------------------------------------------------------------------------------------------------------------------ Net Income $26.3 $18.8 ------------------------------------------------------------------------------------------------------------------------------------ DILUTED EARNINGS PER SHARE Continuing Operations $0.93 $0.68 Discontinued Operations - - ------------------------------------------------------------------------------------------------------------------------------------ $0.93 $0.68 ------------------------------------------------------------------------------------------------------------------------------------ STATISTICAL DATA CORPORATE Common Stock High $49.69 $47.81 Low $44.93 $42.99 Close $46.62 $46.60 Book Value $22.54 $20.48 KILOWATTHOURS SOLD Millions Regulated Utility Retail and Municipals Residential 341.6 308.0 Commercial 352.2 328.7 Municipals 266.4 219.3 Industrial 1,705.4 1,822.3 Other 22.2 20.0 ------------------------------------------------------------------------------------------------------------------------------------ Total Retail and Municipal 2,687.8 2,698.3 Other Power Suppliers 524.0 505.1 ------------------------------------------------------------------------------------------------------------------------------------ Total Regulated Utility 3,211.8 3,203.4 Nonregulated Energy Operations 63.7 65.6 ------------------------------------------------------------------------------------------------------------------------------------ Total Kilowatthours Sold 3,275.5 3,269.0 ------------------------------------------------------------------------------------------------------------------------------------ REAL ESTATE Town Center Development Project Commercial Square Footage Sold - 80,000 Residential Units - - Palm Coast Park Development Project Residential Units - - Other Land Acres Sold 367 456 Lots Sold - - ------------------------------------------------------------------------------------------------------------------------------------
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