EX-99 8 exhibit_99.htm FURNISHED ALLETE, INC. SECOND QUARTER 2009 PRESS RELEASE exhibit_99.htm

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NEWS
 
Exhibit 99 
   
For Release:
August 5, 2009
Investor Contact:
Tim Thorp
 
218-723-3953
 
tthorp@allete.com
   
Contact:
Amy Rutledge
 
218-723-7400
 
218-348-2961
 
arutledge@mnpower.com
   

 
 
ALLETE reports second quarter earnings
 
Duluth, Minn. — ALLETE, Inc. (NYSE: ALE) today reported second quarter 2009 earnings of 29 cents per share, on net income of $9.4 million and total operating revenue of $164.7 million. Quarterly results included a $1.5 million, or 5 cent per share, after-tax charge related to interim rates collected in 2008.
 
In 2008, ALLETE reported second quarter earnings of 37 cents per share on net income of $10.7 million and operating revenue of $189.8 million. Last year’s results included a $3 million after-tax gain, equivalent to 10 cents per share, from the sale of a shopping center in Winter Haven, Fla.
 
Regulated Operations net income increased $3.5 million from the second quarter of 2008. Last year’s results were reduced by higher operating and maintenance expenses related to a planned generating plant outage at Minnesota Power. New wholesale and retail electric rates, and higher income from ALLETE’s investment in the American Transmission Co. were reflected in this year’s second quarter results. Total electric kilowatt hours sales were down 6 percent from the same period a year ago.
 
The Minnesota Public Utilities Commission (MPUC) recently held a hearing to address requests for reconsideration filed by parties to Minnesota Power’s current retail rate increase request. At the hearing, the MPUC approved a final annual rate increase of $20.4 million, but reduced the allowed revenue collected during the interim rate period by $6.3 million. As a result, the company recorded an additional liability for refunds during the second quarter, including the aforementioned amount related to interim rates collected in 2008.
 
ALLETE’s Investments and Other segment recorded a $1.3 million net loss for the quarter compared to $3.5 million net income a year ago. The year-over-year comparison was impacted by the shopping center sale at ALLETE Properties in 2008 and lower earnings on cash in 2009.
 
Earnings in the second quarter of 2009 were also diluted by three cents per share due to an increase in common shares outstanding year-over-year.
 
Based on its revised outlook for 2009 which reflects the impact of the MPUC’s rate case reconsideration, ALLETE expects to report year-end earnings of $2.00 to $2.15 per share, excluding the 2008 portion of interim rate refunds.
 
“Minnesota Power intends to seek additional rate relief soon,” said ALLETE Chairman and CEO Don Shippar. “Our significant capital investment program is the primary reason we plan to file a rate increase request with the MPUC before the end of this year.” Shippar explained that Minnesota Power’s capital expenditures are necessary to meet state-mandated renewable energy and environmental standards, as well as to maintain its low-cost generation fleet and enhance the regional transmission grid.
 
ALLETE provides regulated energy services in Minnesota and Wisconsin, owns BNI Coal of North Dakota and maintains investments in the American Transmission Company and Florida real estate. More information about the company is available 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, Inc.
 
Consolidated Statement of Income
For the Periods Ended June 30, 2009 and 2008
Millions Except Per Share Amounts – Unaudited

     
Quarter Ended
Year to Date
     
2009
2008
2009
2008
Operating Revenue
        
 
Operating Revenue
$167.0
$189.8
$371.9
$403.2
 
Prior Year Rate Refunds
(2.3)
–
(7.6)
–
 
Total Operating Revenue
164.7
189.8
364.3
403.2
         
Operating Expenses
        
 
Fuel and Purchased Power
56.8
75.0
129.6
161.3
 
Operating and Maintenance
76.7
84.4
157.2
167.5
 
Depreciation
15.5
12.9
30.7
25.6
   
Total Operating Expenses
149.0
172.3
317.5
354.4
Operating Income
15.7
17.5
46.8
48.8
Other Income (Expense)
        
 
Interest Expense
(8.4)
(6.6)
(17.1)
(12.6)
 
Equity Earnings in ATC
4.3
3.6
8.5
7.0
 
Other
1.9
2.5
3.0
11.1
   
Total Other Income (Expense)
(2.2)
(0.5)
(5.6)
5.5
         
Income Before Non-Controlling Interest and  Income Taxes
13.5
17.0
41.2
54.3
Income Tax Expense
4.2
6.2
15.0
19.9
Net Income
9.3
10.8
26.2
34.4
 
Less: Non-Controlling Interest in Subsidiaries
(0.1)
0.1
(0.1)
0.1
Net Income Attributable to ALLETE
$9.4
$10.7
$26.3
$34.3
         
Average Shares of Common Stock
        
 
Basic
31.8
28.8
31.3
28.7
 
Diluted
31.8
28.9
31.4
28.8
           
Basic and Diluted Earnings Per Share of Common Stock
$0.29
$0.37
$0.84
$1.19
         
Dividends Per Share of Common Stock
$0.44
$0.43
$0.88
$0.86


Consolidated Balance Sheet
Millions – Unaudited
 
 
Jun. 30,
Dec. 31,
    
Jun. 30,
Dec. 31,
 
2009
2008
    
2009
2008
Assets
      
Liabilities and Equity
    
Cash and Short-Term Investments
$72.4
$102.0
  
Current Liabilities
$145.9
$150.7
Other Current Assets
160.0
150.3
  
Long-Term Debt
627.2
588.3
Property, Plant and Equipment
1,481.7
1,387.3
  
Other Liabilities
360.4
389.3
Investment in ATC
82.1
76.9
  
Deferred Income Taxes & Investment Tax Credits
199.3
169.6
Investments
135.6
136.9
  
Equity
884.8
836.9
Other
285.8
281.4
        
Total Assets
$2,217.6
$2,134.8
  
Total Liabilities and Equity
$2,217.6
$2,134.8

 
 
 
 
 
   
Quarter Ended
Year to Date
   
June 30,
June 30,
ALLETE, Inc.
  
2009
2008
2009
2008
Income (Loss)
          
Millions
              
 
Regulated Operations
$10.7
$7.2
$28.4
$27.3
 
Investments and Other
(1.3)
3.5
(2.1)
7.0
 
Net Income Attributable to ALLETE
  
$9.4
$10.7
$26.3
$34.3
Diluted Earnings Per Share
$0.29
$0.37
$0.84
$1.19
 
Statistical Data
          
Corporate
            
 
Common Stock
        
   
High
  
$29.14
$46.11
$33.27
$46.11
   
Low
  
$24.45
$38.82
$23.35
$33.76
   
Close
  
$28.75
$42.00
$28.75
$42.00
 
Book Value
  
$25.66
$24.51
$25.66
$24.51
 
Kilowatt-hours Sold
        
Millions
            
 
Regulated Utility
        
   
Retail and Municipals
        
     
Residential
242
239
617
602
     
Commercial
331
327
709
709
     
Municipals
222
227
487
499
     
Industrial
874
1,789
2,197
3,612
       
Total Retail and Municipal
1,669
2,582
4,010
5,422
   
Other Power Suppliers
1,107
375
2,024
779
       
Total Regulated Utility
2,776
2,957
6,034
6,201
 
Non-regulated Energy Operations
49
59
106
109
       
Total Kilowatt-hours Sold
2,825
3,016
6,140
6,310
                 
 
 
This exhibit has been furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.