Attached files
 NEWS
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Exhibit
99
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For
Release:
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February
12, 2010
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Investor
Contact:
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Tim
Thorp
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218-723-3953
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tthorp@allete.com
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ALLETE reports 2009 earnings
Results
in line with previously-stated guidance
ALLETE,
Inc. (NYSE: ALE) today reported 2009 earnings of $1.89 per share, compared with
2008 earnings of $2.82 per share. Net income was $61 million on operating
revenue of $759.1 million in 2009, versus net income of $82.5 million and
operating revenue of $801 million in 2008. ALLETE’s 2009 financial results
reflected a $4.9 million, or 15 cent per share, after-tax charge for the 2008
portion of electric customer refunds from a prior rate case. Excluding that
charge, ALLETE’s 2009 earnings were $2.04 per share.
“The
financial picture for ALLETE in 2009 was negatively impacted by the economic
downturn and by regulatory outcomes that were less than favorable to us,” said
Don Shippar, ALLETE's Chairman and Chief Executive Officer.
Regulated Operations recorded
net income of $65.9 million during the year, $2 million less than in 2008.
Higher electric rates did not offset the combination of increased expenses, the
2008 portion of customer refunds, and lower kilowatt-hour sales. Due to the
region’s sluggish economy, sales of electricity to residential, municipal,
commercial and industrial customers all declined from 2008 to 2009.
Kilowatt-hour
sales to other power suppliers, however, more than doubled from 2008 to 2009 as
Minnesota Power sold a portion of the electricity not used by its industrial
customers.
ALLETE
recorded higher income from its investment in the American Transmission Company
due to an investment balance that climbed to $88.4 million at the end of
2009.
Net
income in the Investments and
Other segment fell by $19.5 million compared to 2008. Year-over-year
comparison in this segment was also affected by $9.6 million in tax benefits and
a gain on the sale of securities in 2008 that did not reoccur in 2009. ALLETE
Properties recorded a net loss of $4.7 million in 2009 versus net income of $1.8
million the previous year as real estate market conditions remained weak
throughout the year.
Common
stock shares issued by the company during the year to fund ALLETE’s regulated
utility capital investment program diluted earnings by 19 cents per share in
2009.
Shippar
said he expects ALLETE earnings for the full year 2010 to be within a range of
$2.05 and $2.35 per share.
“We’re
encouraged by an improved outlook for our industrial customers and we expect to
achieve acceptable regulatory outcomes in 2010,” he said. Shippar also noted
that a new industrial customer, Mesabi Nugget, is now in operation and that the
company’s investment balance in the American Transmission Company will grow in
2010.
ALLETE's
corporate headquarters are located in Duluth, Minnesota. ALLETE provides energy
services in the upper Midwest and has 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’s
press releases and other communications may include certain non-Generally
Accepted Accounting Principles (GAAP) financial measures. A “non-GAAP
financial measure” is defined as a numerical measure of a company’s financial
performance, financial position or cash flows that excludes (or includes)
amounts that are included in (or excluded from) the most directly comparable
measure calculated and presented in accordance with GAAP in the company’s
financial statements.
Non-GAAP financial measures utilized
by the Company include presentations of earnings (loss) per share. ALLETE’s
management believes that these non-GAAP financial measures provide useful
information to investors by removing the effect of variances in GAAP reported
results of operations that are not indicative of changes in the fundamental
earnings power of the Company’s operations. Management believes that the
presentation of the non-GAAP financial measures is appropriate and enables investors
and analysts to more accurately compare the company’s ongoing financial
performance over the periods presented.
###
ALLETE,
Inc.
Consolidated
Statement of Income
For
the Periods Ended December 31, 2009 and 2008
Millions
Except Per Share Amounts
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Quarter
Ended
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Year
to Date
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2009
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2008
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2009
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2008
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Operating
Revenue
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Operating
Revenue
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$216.0
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$196.1
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$766.7
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$801.0
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Prior
Year Rate Refunds
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–
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–
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(7.6)
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–
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Total
Operating Revenue
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216.0
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196.1
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759.1
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801.0
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Operating
Expenses
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Fuel
and Purchased Power
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80.1
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63.3
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279.5
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305.6
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Operating
and Maintenance
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84.2
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76.6
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308.9
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318.1
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Depreciation
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17.9
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16.4
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64.7
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55.5
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Total
Operating Expenses
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182.2
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156.3
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653.1
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679.2
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Operating
Income
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33.8
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39.8
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106.0
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121.8
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Other
Income (Expense)
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Interest
Expense
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(8.4)
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(6.8)
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(33.8)
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(26.3)
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Equity
Earnings in ATC
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4.6
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4.1
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17.5
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15.3
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Other
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(2.0)
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1.7
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1.8
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15.6
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Total
Other Income (Expense)
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(5.8)
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(1.0)
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(14.5)
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4.6
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Income
Before Non-Controlling Interest and Income
Taxes
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28.0
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38.8
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91.5
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126.4
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Income
Tax Expense
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9.3
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15.1
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30.8
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43.4
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Net
Income
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18.7
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23.7
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60.7
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83.0
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Less:
Non-Controlling Interest in Subsidiaries
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–
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0.2
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(0.3)
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0.5
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Net
Income Attributable to ALLETE
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$18.7
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$23.5
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$61.0
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$82.5
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Average
Shares of Common Stock
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Basic
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33.4
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30.1
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32.2
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29.2
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Diluted
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33.5
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30.2
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32.2
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29.3
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Basic
and Diluted Earnings Per Share of Common Stock
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$0.56
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$0.78
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$1.89
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$2.82
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Dividends
Per Share of Common Stock
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$0.44
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$0.43
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$1.76
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$1.72
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Consolidated
Balance Sheet
Millions
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Dec.
31,
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Dec.
31,
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Dec.
31,
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Dec.
31,
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2009
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2008
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2009
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2008
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Assets
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Liabilities
and Equity
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Cash
and Short-Term Investments
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$25.7
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$102.0
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Current
Liabilities
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$133.1
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$150.7
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Other
Current Assets
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199.8
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150.3
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Long-Term
Debt
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695.8
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588.3
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Property,
Plant and Equipment
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1,622.7
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1,387.3
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Other
Liabilities
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372.1
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389.3
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Investment
in ATC
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88.4
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76.9
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Deferred
Income Taxes & Investment Tax Credits
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253.1
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169.6
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Investments
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130.5
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136.9
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Equity
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939.0
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836.9
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Other
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326.0
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281.4
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Total
Assets
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$2,393.1
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$2,134.8
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Total
Liabilities and Equity
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$2,393.1
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$2,134.8
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Quarter
Ended
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Year
to Date
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ALLETE,
Inc.
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December
31,
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December
31,
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Income
(Loss)
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2009
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2008
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2009
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2008
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Millions
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Regulated
Operations
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$20.9
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$21.4
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$65.9
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$67.9
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Investments
and Other
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(2.2)
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2.1
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(4.9)
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14.6
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Net
Income Attributable to ALLETE
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$18.7
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$23.5
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$61.0
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$82.5
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Diluted
Earnings Per Share
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$0.56
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$0.78
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$1.89
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$2.82
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Statistical
Data
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Corporate
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Common
Stock
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High
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$35.29
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$44.63
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$35.29
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$49.00
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Low
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$32.23
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$28.28
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$23.35
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$28.28
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Close
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$32.68
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$32.27
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$32.68
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$32.27
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Book
Value
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$26.39
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$25.37
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$26.39
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$25.37
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Kilowatt-hours
Sold
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Millions
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Regulated
Utility
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Retail
and Municipals
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Residential
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308
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318
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1,164
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1,172
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Commercial
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358
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365
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1,420
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1,454
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Municipals
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262
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259
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992
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1,002
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Industrial
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1,294
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1,726
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4,475
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7,192
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Total
Retail and Municipal
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2,222
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2,668
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8,051
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10,820
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Other
Power Suppliers
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981
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556
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4,056
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1,800
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Total
Regulated Utility
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3,203
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3,224
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12,107
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12,620
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Non-regulated
Energy Operations
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41
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48
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203
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217
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Total
Kilowatt-hours Sold
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3,244
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3,272
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12,310
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12,837
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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.