Delaware (State or other jurisdiction of incorporation) | 1-10499 (Commission File Number) | 46-0172280 (IRS Employer Identification No.) | ||
3010 W. 69th Street Sioux Falls, South Dakota (Address of principal executive offices) | 57108 (Zip Code) | |||
(605) 978-2900 (Registrant's telephone number, including area code) |
Item 2.02 | Results of Operations and Financial Condition |
Item 9.01 | Financial Statements and Exhibits. |
EXHIBIT NO. | DESCRIPTION OF DOCUMENT |
99.1* | Press Release dated October 24, 2013 |
99.2* | Presentation, dated October 24, 2013 |
NORTHWESTERN CORPORATION | |||
By: | /s/ Timothy P. Olson | ||
Timothy P. Olson | |||
Corporate Secretary |
EXHIBIT NO. | DESCRIPTION OF DOCUMENT |
99.1* | Press Release dated October 24, 2013 |
99.2* | Presentation, dated October 24, 2013 |
NorthWestern Corporation d/b/a NorthWestern Energy 3010 W. 69th Street Sioux Falls, SD 57108 www.northwesternenergy.com | ||
NYSE: NWE News Release FOR IMMEDIATE RELEASE | Media Contact: Claudia Rapkoch (866) 622-8081 claudia.rapkoch@northwestern.com Investor Relations Contact: Travis Meyer (605) 978-2967 travis.meyer@northwestern.com |
Summary Financial Results | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
(in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Total Revenues | $ | 262,248 | $ | 235,866 | $ | 835,429 | $ | 789,569 | |||||||
Cost of Sales | 104,298 | 93,061 | 343,407 | 327,884 | |||||||||||
Gross Margin | 157,950 | 142,805 | 492,022 | 461,685 | |||||||||||
Operating Expenses | |||||||||||||||
Operating, general and administrative | 72,540 | 63,056 | 208,741 | 195,725 | |||||||||||
MSTI impairment | — | 24,039 | — | 24,039 | |||||||||||
Property and other taxes | 25,956 | 24,796 | 77,525 | 74,395 | |||||||||||
Depreciation | 28,053 | 26,505 | 84,685 | 79,364 | |||||||||||
Total Operating Expenses | 126,549 | 138,396 | 370,951 | 373,523 | |||||||||||
Operating Income | 31,401 | 4,409 | 121,071 | 88,162 | |||||||||||
Interest Expense, net | (17,056 | ) | (17,743 | ) | (50,976 | ) | (49,598 | ) | |||||||
Other Income | 3,117 | 974 | 6,760 | 3,134 | |||||||||||
Income (Loss) Before Income Taxes | 17,462 | (12,360 | ) | 76,855 | 41,698 | ||||||||||
Income Tax (Expense) Benefit | (1,815 | ) | 8,588 | (8,965 | ) | (1,989 | ) | ||||||||
Net Income (Loss) | $ | 15,647 | $ | (3,772 | ) | $ | 67,890 | $ | 39,709 | ||||||
Average Common Shares Outstanding | 38,459 | 37,201 | 37,983 | 36,723 | |||||||||||
Basic Earnings (Loss) per Average Common Share | $ | 0.41 | $ | (0.10 | ) | $ | 1.79 | $ | 1.09 | ||||||
Diluted Earnings (Loss) per Average Common Share | $ | 0.40 | $ | (0.10 | ) | $ | 1.78 | $ | 1.08 | ||||||
Dividends Declared per Common Share | $ | 0.38 | $ | 0.37 | $ | 1.14 | $ | 1.11 |
• | Entered into an agreement with PPL Montana, LLC (PPL Montana), a wholly owned subsidiary of PPL Corporation to purchase PPL Montana’s hydro-electric generating facilities and associated assets located in Montana, which includes approximately 633 megawatts of hydro-electric generation capacity, for a purchase price of $900 million (Hydro Transaction); and |
• | An improvement in net income of approximately $19.4 million as compared with the same period in 2012, due primarily to: |
◦ | $15.1 Million - Improvement in gross margin primarily due to: |
▪ | Higher FERC DGGS revenue due to $11.4 million deferral recorded in the third quarter of 2012 related to the FERC ALJ nonbinding decision; |
▪ | Increased recovery of electric Demand Side Management (DSM) lost revenues; |
▪ | The acquisition of the Spion Kop wind farm in the fourth quarter of 2012; |
▪ | An increase in natural gas production margin due to the full period effect of the acquisition of production assets in the third quarter of 2012; |
▪ | An increase in Montana natural gas delivery rates implemented in April 2013; and |
▪ | An increase in property taxes included in a tracker. |
▪ | These increases were partly offset by a decrease in electric retail volumes due to cooler summer weather and less customer irrigation, lower revenues for operating expenses recovered in trackers and a decrease in electric transmission revenues due primarily to the outage at Colstrip Unit 4. |
◦ | $24.0 Million - Improvement from the absence of the MSTI impairment in the third quarter 2012. |
◦ | $0.6 Million - Reduced interest expense due to higher interest on DGGS accrued during the third quarter 2012 partially offset by higher debt outstanding in 2013. |
◦ | $2.1 Million - Increased other income due to the change in value of deferred shares held in trust for non-employee directors deferred compensation (offset in expense). |
◦ | $9.4 Million - Increased operating, general and administrative expenses primarily due to: |
▪ | Distribution System Infrastructure Project (DSIP) expense; |
▪ | Hydro Transaction legal and professional fees; |
▪ | Increased labor costs; |
▪ | Higher plant operator costs; |
▪ | Non-employee directors deferred compensation due to changes in our stock price (offset in other income); and |
▪ | Higher bad debt expense. |
▪ | These increases were partly offset by decreased pension expense (net of higher other employee benefit costs) and lower operating expenses recovered in trackers. |
◦ | $1.2 Million - Higher property and other taxes |
◦ | $1.6 Million - Increased depreciation expense |
◦ | $10.4 Million - Increased income tax expense |
Reconciliation of Primary Changes from 2012 to 2013 | |||||||||||||||||||||
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | ||||||||||||||||||||
Pre-tax | Net | EPS | Pre-tax | Net | EPS | ||||||||||||||||
($millions, except EPS) | Income | Income(1) | Diluted | Income | Income(1) | Diluted | |||||||||||||||
2012 reported | $ | (12.4 | ) | $ | (3.8 | ) | $ | (0.10 | ) | $ | 41.7 | $ | 39.7 | $ | 1.08 | ||||||
Gross Margin | |||||||||||||||||||||
DGGS | 10.2 | 6.3 | 0.16 | 5.1 | 3.1 | 0.08 | |||||||||||||||
DSM lost revenues | 5.0 | 3.1 | 0.08 | — | — | — | |||||||||||||||
Spion Kop | 1.6 | 1.0 | 0.03 | 4.6 | 2.8 | 0.07 | |||||||||||||||
Natural gas production | 1.2 | 0.7 | 0.02 | 7.0 | 4.3 | 0.11 | |||||||||||||||
Montana natural gas rate increase | 1.2 | 0.7 | 0.02 | 2.1 | 1.3 | 0.03 | |||||||||||||||
Property tax trackers | 0.9 | 0.6 | 0.02 | 1.9 | 1.2 | 0.03 | |||||||||||||||
Electric retail volumes | (3.5 | ) | (2.2 | ) | (0.06 | ) | (0.5 | ) | (0.3 | ) | (0.01 | ) | |||||||||
Operating expenses recovered in trackers | (1.9 | ) | (1.2 | ) | (0.03 | ) | (2.4 | ) | (1.5 | ) | (0.04 | ) | |||||||||
Electric transmission revenue | (0.4 | ) | (0.2 | ) | (0.01 | ) | 3.6 | 2.3 | 0.06 | ||||||||||||
Natural gas retail volumes | — | — | — | 3.4 | 2.1 | 0.06 | |||||||||||||||
Natural gas transportation capacity | — | — | — | 1.1 | 0.7 | 0.02 | |||||||||||||||
Electric QF supply costs | — | — | — | 1.0 | 0.6 | 0.02 | |||||||||||||||
Other | 0.8 | 0.5 | 0.01 | 3.6 | 2.2 | 0.06 | |||||||||||||||
Subtotal - Gross Margin | 15.1 | 9.3 | 0.24 | 30.5 | 18.8 | 0.49 | |||||||||||||||
OG&A Expense | |||||||||||||||||||||
DSIP expenses | (3.3 | ) | (2.0 | ) | (0.05 | ) | (8.8 | ) | (5.4 | ) | (0.14 | ) | |||||||||
Hydro Transaction related legal and professional fees | (2.8 | ) | (1.7 | ) | (0.05 | ) | (3.3 | ) | (2.0 | ) | (0.05 | ) | |||||||||
Labor | (1.7 | ) | (1.0 | ) | (0.03 | ) | (2.8 | ) | (1.7 | ) | (0.04 | ) | |||||||||
Plant operator costs | (1.6 | ) | (1.0 | ) | (0.03 | ) | (3.0 | ) | (1.8 | ) | (0.05 | ) | |||||||||
Nonemployee directors deferred compensation | (1.5 | ) | (0.9 | ) | (0.02 | ) | (2.6 | ) | (1.6 | ) | (0.04 | ) | |||||||||
Bad debt expense | (0.6 | ) | (0.4 | ) | (0.01 | ) | (1.0 | ) | (0.6 | ) | (0.02 | ) | |||||||||
Pension and employee benefits | 3.1 | 1.9 | 0.05 | 10.7 | 6.6 | 0.17 | |||||||||||||||
Operating expenses recovered in trackers | 1.9 | 1.2 | 0.03 | 2.4 | 1.5 | 0.04 | |||||||||||||||
Natural gas production | — | — | — | (1.6 | ) | (1.0 | ) | (0.03 | ) | ||||||||||||
Other | (2.9 | ) | (1.8 | ) | (0.05 | ) | (3.0 | ) | (1.8 | ) | (0.05 | ) | |||||||||
Subtotal - OG&A Expense | (9.4 | ) | (5.7 | ) | (0.16 | ) | (13.0 | ) | (7.8 | ) | (0.21 | ) | |||||||||
Other | |||||||||||||||||||||
MSTI Impairment | 24.0 | 14.8 | 0.40 | 24.0 | 14.8 | 0.40 | |||||||||||||||
Depreciation expense | (1.6 | ) | (1.0 | ) | (0.03 | ) | (5.3 | ) | (3.3 | ) | (0.09 | ) | |||||||||
Property and other taxes | (1.2 | ) | (0.7 | ) | (0.02 | ) | (3.1 | ) | (1.9 | ) | (0.05 | ) | |||||||||
Interest expense | 0.6 | 0.4 | 0.01 | (1.4 | ) | (0.9 | ) | (0.02 | ) | ||||||||||||
Other Income | 2.1 | 1.3 | 0.03 | 3.7 | 2.2 | 0.06 | |||||||||||||||
Income tax and other items | |||||||||||||||||||||
Flow-through repairs deductions | 1.3 | 0.03 | 3.4 | 0.09 | |||||||||||||||||
Flow-through of state bonus depreciation deduction | 0.5 | 0.01 | 1.1 | 0.03 | |||||||||||||||||
Production tax credits | 0.5 | 0.01 | 2.1 | 0.06 | |||||||||||||||||
Prior year permanent return to accrual adjustments | (1.9 | ) | (0.05 | ) | (2.4 | ) | (0.06 | ) | |||||||||||||
Recognition of state NOL benefit / valuation allowance release | (0.1 | ) | — | (0.1 | ) | — | |||||||||||||||
State income tax and other, net | (0.3 | ) | (0.01 | ) | 1.2 | 0.03 | |||||||||||||||
Impact of higher share count | (0.02 | ) | (0.07 | ) | |||||||||||||||||
All other, net | 0.3 | 1.0 | 0.06 | (0.2 | ) | 1.0 | 0.04 | ||||||||||||||
Total EPS impact of above items | 0.50 | 0.70 | |||||||||||||||||||
2013 reported | $ | 17.5 | $ | 15.6 | $ | 0.40 | $ | 76.9 | $ | 67.9 | $ | 1.78 | |||||||||
(1) Income Tax Benefit (Expense) calculation on reconciling items assumes effective tax rate of 38.5%. |
• | Higher DGGS revenue primarily due to the inclusion in 2012 results of the deferral of $11.4 million related to the FERC ALJ nonbinding decision; |
• | A $5.8 million increase in electric DSM lost revenues recovered through our supply trackers related to efficiency measures implemented by customers, offset in part by a decrease of $0.8 million related to natural gas DSM lost revenues. The three months ended September 30, 2013 included recognition of approximately $4.6 million in revenues related to prior periods (including $2.3 million related to calendar year 2012) that we had previously deferred pending approval of our electric tracker filing; |
• | Gross margin from the acquisition of the Spion Kop wind farm in the fourth quarter of 2012; |
• | An increase in natural gas production margin, primarily due to the full period effect of the acquisition of natural gas production assets in the third quarter of 2012; |
• | An increase in Montana natural gas delivery rates implemented in April 2013; and |
• | An increase in property taxes included in a tracker. |
• | A decrease in electric retail volumes due primarily to cooler summer weather and reduced customer irrigation; |
• | Lower revenues for operating expenses recovered in trackers, primarily related to customer efficiency programs; and |
• | A decrease in electric transmission revenues due primarily to an outage at Colstrip Unit 4 during the third quarter of 2013. We expect the outage at Colstrip Unit 4 to have a negative impact on transmission revenues for the remainder of 2013. |
• | Incremental operating and maintenance costs related to the phase-in of DSIP during 2012 and 2011 were deferred in accordance with the Montana Public Service Commission's (MPSC) approval of an accounting order. Incremental DSIP costs for 2013 forward are being expensed as incurred and the amounts previously deferred are being amortized over five years. During the third quarter of 2013 we amortized approximately $0.8 million and incurred incremental DSIP expenses of approximately $2.5 million; |
• | Legal and professional fees associated with the Hydro Transaction; |
• | Increased labor costs due primarily to compensation increases and a larger number of employees; |
• | Higher plant operator costs due primarily to the Spion Kop acquisition and higher maintenance and outage costs at Colstrip Unit 4; |
• | Non-employee directors deferred compensation increased as compared to the prior year, primarily due to changes in our stock price. Directors may defer their board fees into deferred shares held in a rabbi trust. If the market value of our stock goes up, deferred |
• | Higher bad debt expense. |
• | Decreased pension expense, offset in part by higher other employee benefit costs. Our Montana pension costs are included in expense on a pay as you go (cash funding) basis. We received a pension accounting order from the MPSC in 2008, which based our Montana pension expense on an average of our funding requirements for calendar years 2005 through 2012 in order to smooth the impact of increased cash funding. We expect our 2013 Montana pension expense to be approximately $17.0 million to $20.0 million lower than 2012 on an annualized basis due to the expiration of this order and our current cash funding estimate; and |
• | Lower operating expenses recovered in trackers, primarily related to customer efficiency programs. |
(in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Income (Loss) Before Income Taxes | $ | 17.5 | $ | (12.4 | ) | $ | 76.9 | $ | 41.7 | ||||||
Income tax calculated at 35% federal statutory rate | 6.1 | (4.3 | ) | 26.9 | 14.6 | ||||||||||
Permanent or flow through adjustments: | |||||||||||||||
Flow-through repairs deductions | (3.1 | ) | (1.8 | ) | (12.9 | ) | (9.5 | ) | |||||||
Flow-through of state bonus depreciation deduction | (0.8 | ) | (0.3 | ) | (3.3 | ) | (2.2 | ) | |||||||
Production tax credits | (0.5 | ) | — | (2.1 | ) | — | |||||||||
Prior year permanent return to accrual adjustments | — | (1.9 | ) | 0.5 | (1.9 | ) | |||||||||
Recognition of state net operating loss benefit / valuation allowance release | — | (0.1 | ) | — | (0.1 | ) | |||||||||
State income tax and other, net | 0.1 | (0.2 | ) | (0.1 | ) | 1.1 | |||||||||
(4.3 | ) | (4.3 | ) | (17.9 | ) | (12.6 | ) | ||||||||
Income tax expense (benefit) | $ | 1.8 | $ | (8.6 | ) | $ | 9.0 | $ | 2.0 |
• | A consolidated income tax rate of approximately 12% of pre-tax income; |
• | Normal weather in our electric and natural gas service territories for the remainder of 2013; |
• | Excludes any potential additional impact as a result of the FERC decision regarding revenue allocation at our Dave Gates Generating Station; and |
• | Diluted average shares outstanding of 38.3 million. |
2013 | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | YTD 2013 | ||||||||||
Reported GAAP diluted EPS | $ | 1.01 | $ | 0.37 | $ | 0.40 | $ | 1.78 | |||||||
Non-GAAP Adjustments: | |||||||||||||||
Weather | (0.02 | ) | (0.02 | ) | (0.04 | ) | |||||||||
Hydro Transaction related legal and professional fees | 0.05 | 0.05 | |||||||||||||
DSM lost revenue recovery - portion related to 2012 | (0.04 | ) | (0.04 | ) | |||||||||||
Adjusted Diluted EPS | $ | 1.01 | $ | 0.35 | $ | 0.39 | — | $ | 1.75 | ||||||
2012 | Q1 2012 | Q2 2012 | Q3 2012 | Q4 2012 | FY 2012 | ||||||||||
Reported GAAP diluted EPS | $ | 0.88 | $ | 0.31 | $ | (0.10 | ) | $ | 1.57 | $ | 2.66 | ||||
Non-GAAP Adjustments: | |||||||||||||||
Weather | 0.09 | 0.05 | (0.06 | ) | 0.06 | 0.14 | |||||||||
Release of MPSC DGGS deferral | (0.05 | ) | (0.05 | ) | |||||||||||
DSM Lost revenue recovery related to 2010/2011 | (0.05 | ) | (0.05 | ) | |||||||||||
DGGS FERC ALJ initial decision - portion related to 2011 | 0.12 | 0.12 | |||||||||||||
MSTI Impairment | 0.40 | 0.40 | |||||||||||||
Favorable CELP arbitration decision | (0.79 | ) | (0.79 | ) | |||||||||||
Income tax adjustment - benefit from MT NOL | (0.06 | ) | (0.06 | ) | |||||||||||
Adjusted Diluted EPS | $ | 0.92 | $ | 0.31 | $ | 0.36 | $ | 0.78 | $ | 2.37 |
• | potential adverse federal, state, or local legislation or regulation, including costs of compliance with existing and future environmental requirements, as well as adverse determinations by regulators, could have a material effect on our liquidity, results of operations and financial condition; |
• | changes in availability of trade credit, creditworthiness of counterparties, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which could adversely affect our liquidity and results of operations; |
• | unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase cost of sales or may require additional capital expenditures or other increased operating costs; and |
• | adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | ||||||||||||||||
Electric | $ | 227,103 | $ | 202,485 | $ | 637,667 | $ | 605,716 | ||||||||
Gas | 34,772 | 32,965 | 196,652 | 182,812 | ||||||||||||
Other | 373 | 416 | 1,110 | 1,041 | ||||||||||||
Total Revenues | 262,248 | 235,866 | 835,429 | 789,569 | ||||||||||||
Operating Expenses | ||||||||||||||||
Cost of Sales | 104,298 | 93,061 | 343,407 | 327,884 | ||||||||||||
Operating, general and administrative | 72,540 | 63,056 | 208,741 | 195,725 | ||||||||||||
MSTI Impairment | — | 24,039 | — | 24,039 | ||||||||||||
Property and other taxes | 25,956 | 24,796 | 77,525 | 74,395 | ||||||||||||
Depreciation | 28,053 | 26,505 | 84,685 | 79,364 | ||||||||||||
Total Operating Expenses | 230,847 | 231,457 | 714,358 | 701,407 | ||||||||||||
Operating Income | 31,401 | 4,409 | 121,071 | 88,162 | ||||||||||||
Interest Expense, net | (17,056 | ) | (17,743 | ) | (50,976 | ) | (49,598 | ) | ||||||||
Other Income | 3,117 | 974 | 6,760 | 3,134 | ||||||||||||
Income (Loss) Before Income Taxes | 17,462 | (12,360 | ) | 76,855 | 41,698 | |||||||||||
Income Tax (Expense) Benefit | (1,815 | ) | 8,588 | (8,965 | ) | (1,989 | ) | |||||||||
Net Income (Loss) | $ | 15,647 | $ | (3,772 | ) | $ | 67,890 | $ | 39,709 | |||||||
Average Common Shares Outstanding | 38,459 | 37,201 | 37,983 | 36,723 | ||||||||||||
Basic Earnings (Loss) per Average Common Share | $ | 0.41 | $ | (0.10 | ) | $ | 1.79 | $ | 1.09 | |||||||
Diluted Earnings (Loss) per Average Common Share | $ | 0.40 | $ | (0.10 | ) | $ | 1.78 | $ | 1.08 | |||||||
Dividends Declared per Average Share | $ | 0.38 | $ | 0.37 | $ | 1.14 | $ | 1.11 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Basic computation | 38,459 | 37,201 | 37,983 | 36,723 | ||||||||
Dilutive effect of | ||||||||||||
Restricted stock and performance share awards (1,2) | 186 | — | 181 | 71 | ||||||||
Diluted computation | 38,645 | 37,201 | 38,164 | 36,794 |
September 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Current assets | $ | 280,661 | $ | 303,128 | |||
Property, plant, and equipment, net | 2,573,562 | 2,435,590 | |||||
Goodwill | 355,128 | 355,128 | |||||
Regulatory assets | 395,746 | 367,890 | |||||
Other noncurrent assets | 28,553 | 23,797 | |||||
Total Assets | $ | 3,633,650 | $ | 3,485,533 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current maturities of long-term debt and capital leases | $ | 1,659 | $ | 1,612 | |||
Short-term borrowings | 102,980 | 122,934 | |||||
Other current liabilities | 313,325 | 324,719 | |||||
Long-term capital leases | 30,315 | 31,562 | |||||
Long-term debt | 1,055,091 | 1,055,074 | |||||
Deferred income taxes | 397,856 | 363,928 | |||||
Noncurrent regulatory liabilities | 343,597 | 276,618 | |||||
Other noncurrent liabilities | 384,545 | 375,054 | |||||
Total Liabilities | 2,629,368 | 2,551,501 | |||||
Total Shareholders' Equity | 1,004,282 | 934,032 | |||||
Total Liabilities and Shareholders' Equity | $ | 3,633,650 | $ | 3,485,533 |
Nine Months Ended September 30, | |||||||
2013 | 2012 | ||||||
Operating Activities | |||||||
Net income | $ | 67,890 | $ | 39,709 | |||
Non-cash items | $ | 123,627 | $ | 123,995 | |||
Changes in operating assets and liabilities | $ | (20,179 | ) | $ | 58,924 | ||
Cash Provided by Operating Activities | $ | 171,338 | $ | 222,628 | |||
Cash Used in Investing Activities | $ | (150,064 | ) | $ | (175,981 | ) | |
Cash Used in Financing Activities | $ | (20,175 | ) | $ | (34,379 | ) | |
Increase in Cash and Cash Equivalents | $ | 1,099 | $ | 12,268 | |||
Cash and Cash Equivalents, beginning of period | $ | 9,822 | $ | 5,928 | |||
Cash and Cash Equivalents, end of period | $ | 10,921 | $ | 18,196 |
Results | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
(dollars in millions) | ||||||||||||||
Retail revenue | $ | 201.5 | $ | 203.3 | $ | (1.8 | ) | (0.9 | )% | |||||
Regulatory Amortization | 11.8 | (5.2 | ) | 17.0 | (326.9 | ) | ||||||||
Total Retail Revenue | 213.3 | 198.1 | 15.2 | 7.7 | ||||||||||
Transmission | 11.2 | 11.6 | (0.4 | ) | (3.4 | ) | ||||||||
Ancillary services | 0.4 | (9.2 | ) | 9.6 | (104.3 | ) | ||||||||
Wholesale | 0.8 | 0.8 | — | — | ||||||||||
Other | 1.4 | 1.2 | 0.2 | 16.7 | ||||||||||
Total Revenues | $ | 227.1 | $ | 202.5 | $ | 24.6 | 12.1 | |||||||
Total Cost of Sales | 95.3 | 83.8 | 11.5 | 13.7 | ||||||||||
Gross Margin | $ | 131.8 | $ | 118.7 | $ | 13.1 | 11.0 | % |
Revenues | Megawatt Hours (MWH) | Avg. Customer Counts | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Retail Electric | |||||||||||||||||||||||
Montana | $ | 65,455 | $ | 63,951 | $ | 575 | $ | 587 | $ | 274,835 | $ | 273,130 | |||||||||||
South Dakota | 12,698 | 13,947 | 146 | 158 | 49,350 | 48,940 | |||||||||||||||||
Residential | 78,153 | 77,898 | 721 | 745 | 324,185 | 322,070 | |||||||||||||||||
Montana | 83,624 | 83,605 | 823 | 867 | 62,639 | 62,179 | |||||||||||||||||
South Dakota | 18,502 | 19,643 | 255 | 259 | 12,154 | 12,235 | |||||||||||||||||
Commercial | 102,126 | 103,248 | 1,078 | 1,126 | 74,793 | 74,414 | |||||||||||||||||
Industrial | 10,105 | 10,011 | 737 | 806 | 74 | 74 | |||||||||||||||||
Other | 11,131 | 12,148 | 91 | 103 | 7,813 | 7,816 | |||||||||||||||||
Total Retail Electric | $ | 201,515 | $ | 203,305 | $ | 2,627 | $ | 2,780 | $ | 406,865 | $ | 404,374 | |||||||||||
Total Wholesale Electric | $ | 845 | $ | 781 | $ | 39 | $ | 41 | $ | — | $ | — |
Degree Days | 2013 as compared with: | |||||||||||
Cooling Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | |||||||
Montana | 393 | 395 | 259 | 1% cooler | 52% warmer | |||||||
South Dakota | 702 | 911 | 639 | 23% cooler | 10% warmer | |||||||
Degree Days | 2013 as compared with: | |||||||||||
Heating Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | |||||||
Montana | 231 | 244 | 357 | 5% warmer | 35% warmer | |||||||
South Dakota | 60 | 65 | 90 | 8% warmer | 33% warmer |
Results | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
(dollars in millions) | ||||||||||||||
Retail revenue | $ | 581.5 | $ | 561.9 | $ | 19.6 | 3.5 | % | ||||||
Regulatory Amortization | 11.9 | 10.8 | 1.1 | 10.2 | ||||||||||
Total Retail Revenue | 593.4 | 572.7 | 20.7 | 3.6 | ||||||||||
Transmission | 37.3 | 33.7 | 3.6 | 10.7 | ||||||||||
Ancillary Services | 1.1 | (6.5 | ) | 7.6 | (116.9 | ) | ||||||||
Wholesale | 2.0 | 2.4 | (0.4 | ) | (16.7 | ) | ||||||||
Other | 3.9 | 3.4 | 0.5 | 14.7 | ||||||||||
Total Revenues | $ | 637.7 | $ | 605.7 | $ | 32.0 | 5.3 | |||||||
Total Cost of Sales | 260.9 | 244.9 | 16.0 | 6.5 | ||||||||||
Gross Margin | $ | 376.8 | $ | 360.8 | $ | 16.0 | 4.4 | % |
Revenues | Megawatt Hours (MWH) | Avg. Customer Counts | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Retail Electric | |||||||||||||||||||||||
Montana | $ | 198,375 | $ | 188,768 | $ | 1,751 | $ | 1,749 | $ | 275,913 | $ | 273,711 | |||||||||||
South Dakota | 37,150 | 36,993 | 447 | 424 | 49,250 | 48,887 | |||||||||||||||||
Residential | 235,525 | 225,761 | 2,198 | 2,173 | 325,163 | 322,598 | |||||||||||||||||
Montana | 238,482 | 230,498 | 2,356 | 2,416 | 62,638 | 62,046 | |||||||||||||||||
South Dakota | 52,009 | 52,887 | 722 | 712 | 12,168 | 12,116 | |||||||||||||||||
Commercial | 290,491 | 283,385 | 3,078 | 3,128 | 74,806 | 74,162 | |||||||||||||||||
Industrial | 31,089 | 28,185 | 2,194 | 2,217 | 74 | 74 | |||||||||||||||||
Other | 24,352 | 24,600 | 168 | 178 | 6,129 | 6,101 | |||||||||||||||||
Total Retail Electric | $ | 581,457 | $ | 561,931 | $ | 7,638 | $ | 7,696 | $ | 406,172 | $ | 402,935 | |||||||||||
Total Wholesale Electric | $ | 2,022 | $ | 2,382 | $ | 97 | $ | 137 | $ | — | $ | — |
Degree Days | 2013 as compared with: | |||||||||||
Cooling Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | |||||||
Montana | 438 | 450 | 300 | 3% cooler | 46% warmer | |||||||
South Dakota | 752 | 1,061 | 696 | 29% cooler | 8% warmer | |||||||
Degree Days | 2013 as compared with: | |||||||||||
Heating Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | |||||||
Montana | 4,721 | 4,488 | 4,947 | 5% colder | 5% warmer | |||||||
South Dakota | 6,174 | 4,375 | 5,573 | 41% colder | 11% colder |
Results | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
(dollars in millions) | ||||||||||||||
Retail revenues | $ | 22.8 | $ | 19.9 | $ | 2.9 | 14.6 | % | ||||||
Regulatory amortization | 3.2 | 5.1 | (1.9 | ) | (37.3 | ) | ||||||||
Total retail revenues | 26.0 | 25.0 | 1.0 | 4.0 | ||||||||||
Wholesale and other | 8.8 | 8.0 | 0.8 | 10.0 | ||||||||||
Total Revenues | 34.8 | 33.0 | 1.8 | 5.5 | ||||||||||
Total Cost of Sales | 9.0 | 9.2 | (0.2 | ) | (2.2 | ) | ||||||||
Gross Margin | $ | 25.8 | $ | 23.8 | $ | 2.0 | 8.4 | % | ||||||
Revenue | Dekatherms (Dkt) | Avg. Customer Counts | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Retail Gas | |||||||||||||||||||
Montana | $ | 9,770 | $ | 8,795 | 807 | 758 | 159,197 | 158,524 | |||||||||||
South Dakota | 1,916 | 1,757 | 124 | 113 | 37,846 | 37,551 | |||||||||||||
Nebraska | 2,257 | 1,887 | 157 | 149 | 36,315 | 36,222 | |||||||||||||
Residential | 13,943 | 12,439 | 1,088 | 1,020 | 233,358 | 232,297 | |||||||||||||
Montana | 6,042 | 5,171 | 581 | 515 | 22,271 | 22,181 | |||||||||||||
South Dakota | 1,296 | 1,130 | 171 | 171 | 5,971 | 5,931 | |||||||||||||
Nebraska | 1,281 | 985 | 185 | 187 | 4,538 | 4,517 | |||||||||||||
Commercial | 8,619 | 7,286 | 937 | 873 | 32,780 | 32,629 | |||||||||||||
Industrial | 145 | 93 | 12 | 10 | 262 | 269 | |||||||||||||
Other | 94 | 68 | 10 | 8 | 156 | 150 | |||||||||||||
Total Retail Gas | $ | 22,801 | $ | 19,886 | 2,047 | 1,911 | 266,556 | 265,345 |
Degree Days | 2013 as compared with: | ||||||||
Heating Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | ||||
Montana | 231 | 244 | 357 | 5% warmer | 35% warmer | ||||
South Dakota | 60 | 65 | 90 | 8% warmer | 33% warmer | ||||
Nebraska | 21 | 27 | 49 | 22% warmer | 57% warmer |
Results | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
(dollars in millions) | ||||||||||||||
Retail revenues | $ | 173.5 | $ | 150.0 | $ | 23.5 | 15.7 | % | ||||||
Regulatory amortization | (6.3 | ) | 7.3 | (13.6 | ) | (186.3 | ) | |||||||
Total retail revenues | 167.2 | 157.3 | 9.9 | 6.3 | ||||||||||
Wholesale and other | 29.5 | 25.5 | 4.0 | 15.7 | ||||||||||
Total Revenues | 196.7 | 182.8 | 13.9 | 7.6 | ||||||||||
Total Cost of Sales | 82.5 | 83.0 | (0.5 | ) | (0.6 | ) | ||||||||
Gross Margin | $ | 114.2 | $ | 99.8 | $ | 14.4 | 14.4 | % | ||||||
Revenue | Dekatherms (Dkt) | Avg. Customer Counts | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||||
Retail Gas | |||||||||||||||||||
Montana | $ | 72,171 | $ | 67,049 | 8,014 | 7,656 | 160,330 | 159,316 | |||||||||||
South Dakota | 20,227 | 15,447 | 2,354 | 1,709 | 38,146 | 37,792 | |||||||||||||
Nebraska | 18,774 | 14,234 | 2,012 | 1,578 | 36,656 | 36,520 | |||||||||||||
Residential | 111,172 | 96,730 | 12,380 | 10,943 | 235,132 | 233,628 | |||||||||||||
Montana | 37,338 | 34,409 | 4,252 | 4,004 | 22,443 | 22,329 | |||||||||||||
South Dakota | 13,498 | 9,656 | 2,119 | 1,545 | 6,028 | 5,961 | |||||||||||||
Nebraska | 10,016 | 7,880 | 1,496 | 1,279 | 4,596 | 4,571 | |||||||||||||
Commercial | 60,852 | 51,945 | 7,867 | 6,828 | 33,067 | 32,861 | |||||||||||||
Industrial | 776 | 672 | 88 | 80 | 264 | 273 | |||||||||||||
Other | 720 | 641 | 97 | 85 | 157 | 150 | |||||||||||||
Total Retail Gas | $ | 173,520 | $ | 149,988 | 20,432 | 17,936 | 268,620 | 266,912 |
Degree Days | 2013 as compared with: | ||||||||
Heating Degree-Days | 2013 | 2012 | Historic Average | 2012 | Historic Average | ||||
Montana | 4,721 | 4,488 | 4,947 | 5% colder | 5% warmer | ||||
South Dakota | 6,174 | 4,375 | 5,573 | 41% colder | 11% colder | ||||
Nebraska | 4,741 | 3,611 | 4,584 | 31% colder | 3% colder |
Three Months Ended | |||||||||||||||||||
September 30, 2013 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 227,103 | $ | 34,772 | $ | 373 | $ | — | $ | 262,248 | |||||||||
Cost of sales | 95,264 | 9,034 | — | — | 104,298 | ||||||||||||||
Gross margin | 131,839 | 25,738 | 373 | — | 157,950 | ||||||||||||||
Operating, general and administrative | 49,155 | 18,521 | 4,864 | — | 72,540 | ||||||||||||||
Property and other taxes | 19,381 | 6,572 | 3 | — | 25,956 | ||||||||||||||
Depreciation | 22,150 | 5,895 | 8 | — | 28,053 | ||||||||||||||
Operating income (loss) | 41,153 | (5,250 | ) | (4,502 | ) | — | 31,401 | ||||||||||||
Interest expense | (14,302 | ) | (2,560 | ) | (194 | ) | — | (17,056 | ) | ||||||||||
Other income | 2,213 | 878 | 26 | — | 3,117 | ||||||||||||||
Income tax (expense) benefit | (8,412 | ) | 3,520 | 3,077 | — | (1,815 | ) | ||||||||||||
Net income (loss) | $ | 20,652 | $ | (3,412 | ) | $ | (1,593 | ) | $ | — | $ | 15,647 |
Three Months Ended | |||||||||||||||||||
September 30, 2012 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 202,485 | $ | 32,965 | $ | 416 | $ | — | $ | 235,866 | |||||||||
Cost of sales | 83,814 | 9,247 | — | — | 93,061 | ||||||||||||||
Gross margin | 118,671 | 23,718 | 416 | — | 142,805 | ||||||||||||||
Operating, general and administrative | 44,711 | 17,452 | 893 | — | 63,056 | ||||||||||||||
MSTI Impairment | 24,039 | — | — | — | 24,039 | ||||||||||||||
Property and other taxes | 18,621 | 6,172 | 3 | — | 24,796 | ||||||||||||||
Depreciation | 21,636 | 4,860 | 9 | — | 26,505 | ||||||||||||||
Operating income (loss) | 9,664 | (4,766 | ) | (489 | ) | — | 4,409 | ||||||||||||
Interest expense | (15,181 | ) | (2,363 | ) | (199 | ) | — | (17,743 | ) | ||||||||||
Other income | 405 | 541 | 28 | — | 974 | ||||||||||||||
Income tax benefit (expense) | 5,762 | 3,102 | (276 | ) | — | 8,588 | |||||||||||||
Net income (loss) | $ | 650 | $ | (3,486 | ) | $ | (936 | ) | $ | — | $ | (3,772 | ) |
Nine Months Ended | |||||||||||||||||||
September 30, 2013 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 637,667 | $ | 196,652 | $ | 1,110 | $ | — | $ | 835,429 | |||||||||
Cost of sales | 260,879 | 82,528 | — | — | 343,407 | ||||||||||||||
Gross margin | 376,788 | 114,124 | 1,110 | — | 492,022 | ||||||||||||||
Operating, general and administrative | 142,594 | 56,899 | 9,248 | — | 208,741 | ||||||||||||||
Property and other taxes | 57,549 | 19,968 | 8 | — | 77,525 | ||||||||||||||
Depreciation | 67,454 | 17,206 | 25 | — | 84,685 | ||||||||||||||
Operating income (loss) | 109,191 | 20,051 | (8,171 | ) | — | 121,071 | |||||||||||||
Interest expense | (42,840 | ) | (7,553 | ) | (583 | ) | — | (50,976 | ) | ||||||||||
Other income | 4,926 | 1,753 | 81 | — | 6,760 | ||||||||||||||
Income tax (expense) benefit | (12,792 | ) | (153 | ) | 3,980 | — | (8,965 | ) | |||||||||||
Net income (loss) | $ | 58,485 | $ | 14,098 | $ | (4,693 | ) | $ | — | $ | 67,890 |
Nine Months Ended | |||||||||||||||||||
September 30, 2012 | Electric | Gas | Other | Eliminations | Total | ||||||||||||||
Operating revenues | $ | 605,716 | $ | 182,812 | $ | 1,041 | $ | — | $ | 789,569 | |||||||||
Cost of sales | 244,902 | 82,982 | — | — | 327,884 | ||||||||||||||
Gross margin | 360,814 | 99,830 | 1,041 | — | 461,685 | ||||||||||||||
Operating, general and administrative | 137,753 | 55,397 | 2,575 | — | 195,725 | ||||||||||||||
MSTI impairment | 24,039 | — | — | — | 24,039 | ||||||||||||||
Property and other taxes | 55,628 | 18,759 | 8 | — | 74,395 | ||||||||||||||
Depreciation | 64,770 | 14,569 | 25 | — | 79,364 | ||||||||||||||
Operating income (loss) | 78,624 | 11,105 | (1,567 | ) | — | 88,162 | |||||||||||||
Interest expense | (42,257 | ) | (6,660 | ) | (681 | ) | — | (49,598 | ) | ||||||||||
Other income | 1,818 | 1,235 | 81 | — | 3,134 | ||||||||||||||
Income tax (expense) benefit | (3,322 | ) | 522 | 811 | — | (1,989 | ) | ||||||||||||
Net income (loss) | $ | 34,863 | $ | 6,202 | $ | (1,356 | ) | $ | — | $ | 39,709 |
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