EX-99.1 5 newsrelease.htm FURNISHED ALLETE, INC. THIRD QUARTER 2007 PRESS RELEASE newsrelease.htm

For Release:
Oct. 26, 2007
Contact:
Eric Olson
 
218-723-3947
 
eolson@allete.com
   
Investor
Tim Thorp
Contact:
218-723-3953
 
tthorp@allete.com
 
ALLETE reports third quarter 2007 earnings of 58 cents per share
 
 

 
ALLETE Inc. (NYSE: ALE) today reported third quarter 2007 earnings of 58 cents per share, on net income of $16.5 million and operating revenue of $200.8 million.
 
In the third quarter a year ago, earnings were 78 cents per share on net income of $21.8 million and operating revenue of $199.1 million.
 
Earnings from ALLETE’s energy business segments were, in total, about the same in the third quarter of 2007 as they were in 2006.
 
ALLETE’s investment in the American Transmission Company recorded net income of $1.9 million in the third quarter of 2007, compared to $0.6 million in the third quarter a year ago. ALLETE began investing in ATC in May of 2006, and that investment gradually grew throughout the year.
 
Regulated Utility net income of $13.0 million for the quarter was down from $13.7 million in 2006. Kilowatt-hour sales of electricity were about two percent lower than last year, and operations and maintenance expenses were higher due to a planned outage and storm recovery expenditures. These items were partially offset by a lower effective tax rate this year.
 
ALLETE’s real estate income in the third quarter was $0.6 million compared with $5.1 million in the third quarter of 2006. ALLETE Chairman, President and CEO Don Shippar noted that the company’s latest earnings guidance, issued in July, assumed real estate activity during the second half of 2007 would fall from levels recorded a year earlier due to difficult market conditions.
 
 “ALLETE remains on track to meet our 2007 earnings expectation of $3.00 to $3.05 per share,” Shippar said. Through the first three quarters of this year, ALLETE has earned $2.31 per share versus $1.95 for the same period in 2006.
 
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, Inc.
 
Consolidated Statement of Income
For the Periods Ended September 30, 2007 and 2006
Millions Except Per Share Amounts
     
Quarter Ended
Year to Date
 
 
 
2007
2006
2007
2006
Operating Revenue
$200.8
$199.1
$629.4
$569.9
Operating Expenses
        
 
Fuel and Purchased Power
91.8
79.5
262.4
211.9
 
Operating and Maintenance
72.1
68.7
231.3
220.0
 
Depreciation
12.2
12.2
35.8
36.6
 
 
Total Operating Expenses
176.1
160.4
529.5
468.5
Operating Income from Continuing Operations
24.7
38.7
99.9
101.4
Other Income (Expense)
        
 
Interest Expense
(6.3)
(7.3)
(18.7)
(20.1)
 
Equity Earnings in ATC
3.2
1.0
9.3
1.0
 
Other
3.2
2.7
11.9
7.8
 
 
Total Other Income (Expense)
0.1
(3.6)
2.5
(11.3)
Income from Continuing Operations
        
 
Before Minority Interest and Income Taxes
24.8
35.1
102.4
90.1
Income Tax Expense
8.1
12.1
35.4
32.6
Minority Interest
0.2
1.1
1.6
3.2
Income from Continuing Operations
16.5
21.9
65.4
54.3
Income from Discontinued Operations - Net of Tax
0.0
(0.1)
0.0
(0.5)
Net Income
$16.5
$21.8
$65.4
$53.8
             
Average Shares of Common Stock
        
 
Basic
28.5
27.8
28.2
27.7
 
Diluted
28.5
27.9
28.3
27.8
Basic Earnings Per Share of Common Stock
        
 
Continuing Operations
$0.58
$0.78
$2.31
$1.96
 
Discontinued Operations
0.00
0.00
0.00
(0.02)
 
 
 
$0.58
$0.78
$2.31
$1.94
Diluted Earnings Per Share of Common Stock
        
 
Continuing Operations
$0.58
$0.78
$2.31
$1.95
 
Discontinued Operations
0.00
0.00
0.00
(0.02)
 
 
 
$0.58
$0.78
$2.31
$1.93
Dividends Per Share of Common Stock
$0.4100
$0.3625
$1.2300
$1.0875


Consolidated Balance Sheet
Millions
 
Sep. 30,
Dec. 31,
  
Sep. 30,
Dec. 31,
 
2007
2006
  
2007
2006
Assets
    
Liabilities and Shareholders' Equity
    
Cash and Short-Term Investments
$131.8
 $  149.3
Current Liabilities
 $  129.6
 $  143.5
Other Current Assets
135.8
     138.4
Long-Term Debt
     409.0
     359.8
Property, Plant and Equipment
1,033.8
     921.6
Other Liabilities
     383.4
     364.3
Investments
206.4
     189.1
Shareholders' Equity
     724.5
     665.8
Other
138.7
     135.0
      
Total Assets
$1,646.5
 $1,533.4
Total Liabilities and Shareholders' Equity
 $1,646.5
 $1,533.4



         
Quarter Ended
Year to Date
         
September 30,
September 30,
ALLETE, Inc.
 
2007
2006
2007
2006
Income (Loss)
          
Millions
              
 
Regulated Utility
$13.0
$13.7
$37.9
$33.5
 
Nonregulated Energy Operations
0.6
1.1
3.4
2.9
 
ATC
    
1.9
0.6
5.6
0.6
 
Real Estate
  
0.6
5.1
15.2
15.7
 
Other
 
 
0.4
1.4
3.3
1.6
 
Income from Continuing Operations
16.5
21.9
65.4
54.3
 
Loss from Discontinued Operations
0.0
0.1
0.0
0.5
 
Net Income
 
$16.5
$21.8
$65.4
$53.8
Diluted Earnings Per Share
        
 
Continuing Operations
$0.58
$0.78
$2.31
$1.95
 
Discontinued Operations
0.0
0.0
0.0
(0.02)
 
 
 
 
 
$0.58
$0.78
$2.31
$1.93
                 
Statistical Data
          
Corporate
            
 
Common Stock
        
   
High
  
$50.05
$49.30
$51.30
$49.30
   
Low
  
$38.60
$43.26
$38.60
$42.99
   
Close
  
$44.76
$43.45
$44.76
$43.45
 
Book Value
  
$23.50
$21.26
$23.50
$21.26
                 
Kilowatthours Sold
        
Millions
              
 
Regulated Utility
        
   
Retail and Municipals
        
     
Residential
258.8
263.0
832.1
800.1
     
Commercial
360.5
361.7
1,033.6
1,005.9
     
Municipals
255.7
248.6
751.3
684.0
     
Industrial
1,775.8
1,836.9
5,215.2
5,429.1
 
 
 
Other
21.5
20.8
62.8
59.4
       
Total Retail and Municipal
2,672.3
2,731.0
7,895.0
7,978.5
 
 
Other Power Suppliers
571.9
584.3
1,608.8
1,604.9
       
Total Regulated Utility
3,244.2
3,315.3
9,503.8
9,583.4
 
Nonregulated Energy Operations
60.7
60.4
184.2
181.3
 
 
 
 
Total Kilowatthours Sold
3,304.9
3,375.7
9,688.0
9,764.7
                 
Real Estate
            
 
Town Center Development Project
        
   
Commercial Square Footage Sold
50,000
114,300
474,476
364,995
   
Residential Units
–
356
       130
       542
                 
 
Palm Coast Park Development Project
        
   
Commercial Square Footage Sold
–
–
  40,000
            –
   
Residential Units
–
200
       406
       200
                 
 
Other Land
          
   
Acres Sold
83
242
       450
       708