EX-99 14 exhibit_99.htm 2007 NEWS RELEASE exhibit_99.htm
 
Exhibit 99
 
ALLETE 2007 Form 10-K
 
 
 
For Release:
Feb. 15, 2008
Contact:
Eric Olson
 
218-723-3947
 
eolson@allete.com
Investor
Tim Thorp
Contact:
218-723-3953
 
tthorp@allete.com
NEWS
    

 
 
ALLETE reports 2007 EPS of $3.08, 11% higher than in 2006
 
ALLETE (NYSE:ALE) today reported 2007 net income of $87.6 million on revenue of $841.7 million, compared to $76.4 million in net income and $767.1 million in revenue in 2006. Diluted earnings per share from continuing operations rose 11% to $3.08 from $2.77 in 2006.
 
“We are pleased with our financial performance in 2007, especially when considering the difficult market conditions faced by our real estate business,” said Chairman, President, and CEO Donald J. Shippar.
 
Income from ALLETE’s Energy business segments were $65.9 million for 2007 compared to $52.4 million in the preceding year. Weather-related kilowatt-hour sales increases, a full year’s earnings contribution from the company’s investment in the American Transmission Company, higher rates at Superior, Water, Light & Power and the addition of two new municipal full requirements customers all contributed to the improvement. These increases were partially offset by higher operation and maintenance expenses during the year, compared to 2006. The Energy business also benefited from a lower effective tax rate in 2007.
 
Income from ALLETE’s Real Estate segment was $17.7 million on 2007 versus $22.8 million in 2006 due to decreased demand for property during the year.
 
ALLETE continues to expect 2008 earnings per share to be within a range of $2.70 to $2.90, with about 10 to 20 percent from the real estate segment. Shippar also noted that the company’s board of directors recently announced a 5% dividend increase.
 
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.
 

 
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        ALLETE · 30 West Superior Street, Duluth, Minnesota 55802      
        www.allete.com      
    

 
ALLETE, Inc.
Consolidated Statement of Income
For the Periods Ended December 31, 2007 and 2006
Millions Except Per Share Amounts
     
Quarter Ended
Year to Date
 
 
 
2007
2006
2007
2006
Operating Revenue
$212.3
$197.2
$841.7
$767.1
Operating Expenses
        
 
Fuel and Purchased Power
85.2
69.8
347.6
281.7
 
Operating and Maintenance
80.6
76.0
311.9
296.0
 
Depreciation
12.7
12.1
48.5
48.7
 
 
Total Operating Expenses
178.5
157.9
708.0
626.4
Operating Income from Continuing Operations
33.8
39.3
133.7
140.7
Other Income (Expense)
        
 
Interest Expense
(5.9)
(7.3)
(24.6)
(27.4)
 
Equity Earnings in ATC
3.3
2.0
12.6
3.0
 
Other
3.6
4.1
15.5
11.9
 
 
Total Other Income (Expense)
1.0
(1.2)
3.5
 (12.5)
Income from Continuing Operations Before Minority
        
 
Interest and Income Taxes
34.8
38.1
137.2
128.2
Income Tax Expense
12.3
13.7
47.7
46.3
Minority Interest
0.3
1.4
1.9
4.6
Income from Continuing Operations
22.2
23.0
87.6
77.3
Loss from Discontinued Operations - Net of Tax
–
  (0.4)
–
(0.9)
Net Income
$22.2
$22.6
$87.6
$76.4
             
Average Shares of Common Stock
        
 
Basic
28.6
27.9
28.3
27.8
 
Diluted
28.7
28.0
28.4
27.9
Basic Earnings Per Share of Common Stock
        
 
Continuing Operations
$0.78
$0.82
$3.09
$2.78
 
Discontinued Operations
–
   (0.01)
–
(0.03)
 
 
 
$0.78
$0.81
$3.09
$2.75
Diluted Earnings Per Share of Common Stock
        
 
Continuing Operations
$0.77
$0.82
$3.08
$2.77
 
Discontinued Operations
–
(0.01)
–
(0.03)
 
 
 
$0.77
$0.81
$3.08
$2.74
Dividends Per Share of Common Stock
$0.4100
$0.3625
$1.6400
$1.4500


Consolidated Balance Sheet
Millions
 
Dec. 31,
Dec. 31,
    
Dec. 31,
Dec. 31,
 
2007
2006
    
2007
2006
Assets
      
Liabilities and Shareholders' Equity
    
Cash and Short-Term Investments
$46.4
 $149.3
  
Current Liabilities
$137.1
 $143.5
Other Current Assets
168.1
138.4
  
Long-Term Debt
410.9
     359.8
Property, Plant and Equipment
1,104.5
     921.6
  
Other Liabilities
353.6
     364.3
Investments
213.8
     189.1
  
Shareholders' Equity
742.6
     665.8
Other
111.4
     135.0
        
Total Assets
$1,644.2
 $1,533.4
  
Total Liabilities and Shareholders' Equity
$1,644.2
 $1,533.4



         
Quarter Ended
Year to Date
         
December 31,
December 31,
ALLETE, Inc.
 
2007
2006
2007
2006
Income (Loss)
          
Millions
              
 
Regulated Utility
$17.0
$13.3
$54.9
$46.8
 
Nonregulated Energy Operations
0.1
0.8
3.5
3.7
 
ATC
    
1.9
1.3
7.5
1.9
 
Real Estate
  
2.5
7.1
17.7
22.8
 
Other
 
 
0.7
0.5
4.0
2.1
 
Income from Continuing Operations
22.2
23.0
87.6
77.3
 
Loss from Discontinued Operations
–
(0.4)
–
(0.9)
 
Net Income
 
$22.2
$22.6
$87.6
$76.4
Diluted Earnings Per Share
        
 
Continuing Operations
$0.77
$0.82
$3.08
$2.77
 
Discontinued Operations
–
(0.01)
–
(0.03)
 
 
 
 
 
$0.77
$0.81
$3.08
$2.74
                 
Statistical Data
          
Corporate
            
 
Common Stock
        
   
High
  
$46.48
$47.84
$51.30
$49.30
   
Low
  
$38.17
$42.55
$38.17
$42.55
   
Close
  
$39.58
$46.54
$39.58
$46.54
 
Book Value
  
$24.11
$21.90
$24.11
$21.90
                 
Kilowatthours Sold
        
Millions
              
 
Regulated Utility
        
   
Retail and Municipals
        
     
Residential
309.0
300.3
1,141.1
1,100.4
     
Commercial
339.5
329.3
1,373.1
1,335.2
     
Municipals
256.2
226.5
1,007.5
910.5
     
Industrial
1,838.3
1,776.5
7,053.5
7,205.6
 
 
 
Other
22.0
19.3
84.8
78.7
       
Total Retail and Municipal
2,756.0
2,651.9
10,660.0
10,630.4
 
 
Other Power Suppliers
548.5
548.0
2,157.3
2,152.9
       
Total Regulated Utility
3,313.5
3,199.9
12,817.3
12,783.3
 
Nonregulated Energy Operations
64.2
59.1
248.4
240.4
 
 
 
 
Total Kilowatthours Sold
3,377.7
3,259.0
13,065.7
13,023.7
                 
Real Estate
            
 
Town Center Development Project
        
   
Non-residential Square Footage Sold
65,583
36,976
540,059
401,971
   
Residential Units
–
231
       130
       773
                 
 
Palm Coast Park Development Project
        
   
Non-residential Square Footage Sold
–
–
  40,000
            –
   
Residential Units
200
–
       606
       200
 
Other Land
          
   
Acres Sold
33
24
       483
       732