ALLETE, Inc. reports second quarter earnings of 90 cents per share; reaffirms 2023 earnings guidance range of $3.55 to $3.85 per share
ALLETE, Inc. (NYSE: ALE) today reported second quarter 2023 earnings of
“We are very pleased with this quarter’s solid results,” said ALLETE Chair, President, and Chief Executive Officer Bethany Owen. “Through the first half of this year, we have also made significant progress in executing our Sustainability in Action strategy – working with our diverse stakeholders as we advance the transition to a clean-energy future. Minnesota Power recently filed certificates of need and route permit applications for the modernization of its 465-mile HVDC transmission line, and for the Northland Reliability Project. In addition, New Energy Equity has maintained a robust pipeline of projects and disciplined project execution as reflected in another strong quarter of financial results, and ALLETE Clean Energy successfully closed on its Red Barn project in April.”
“Our results for the second quarter 2023 were higher than prior year due to New Energy Equity having another outstanding quarter of project closings, with attractive margins and entry into a new market, and is firmly on track to achieve or slightly exceed full-year earnings projections.” said ALLETE Senior Vice President and Chief Financial Officer Steve Morris. “Our regulated operations were also higher due to increased retail sales and lower property taxes this year, partially offset by reserves for interim rates resulting from Minnesota Power’s February rate case order. Wind resources were down across much of the nation and consequently, results at ALLETE Clean Energy were below our expectations for the quarter, partially offset by the profitable sale of the Red Barn project. We are pleased to reaffirm our 2023 guidance, as we remain confident in our earnings range of
ALLETE’s Regulated Operations segment, which includes Minnesota Power, Superior Water, Light and Power (SWL&P) and the Company’s investment in the American Transmission Company, recorded second quarter 2023 net income of
ALLETE Clean Energy recorded second quarter 2023 net income of
Corporate and Other businesses, which include New Energy Equity, BNI Energy, ALLETE Properties and our investments in renewable energy facilities, recorded net income of
Earnings per share dilution in 2023 was approximately
Live Webcast on August 8, 2023; 2023 second quarter slides posted on company website.
ALLETE’s earnings conference call will be at 10:00 a.m. (EST), August 8, 2023, at which time management will discuss the second quarter of 2023 financial results. Interested parties may participate live by registering for the call at www.allete.com/earningscall, or may listen to the live audio-only webcast accompanied by supporting slides, which will be available on ALLETE’s Investor Relations website investor.allete.com/events-presentations. The webcast will be accessible for one year at allete.com.
ALLETE is an energy company headquartered in
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
Millions Except Per Share Amounts - Unaudited
|
Quarter Ended |
Six Months Ended |
||
|
June 30 |
June 30 |
||
|
2023 |
2022 |
2023 |
2022 |
Operating Revenue |
|
|
|
|
Contracts with Customers – Utility |
|
|
|
|
Contracts with Customers – Non-utility |
239.9 |
62.1 |
490.9 |
113.8 |
Other – Non-utility |
1.3 |
2.3 |
2.6 |
5.1 |
Total Operating Revenue |
533.4 |
373.1 |
1,098.3 |
756.6 |
Operating Expenses |
|
|
|
|
Fuel, Purchased Power and Gas – Utility |
107.3 |
143.2 |
225.9 |
280.6 |
Transmission Services – Utility |
23.5 |
18.3 |
43.6 |
38.2 |
Cost of Sales – Non-utility |
193.2 |
41.5 |
403.7 |
58.5 |
Operating and Maintenance |
84.9 |
79.6 |
170.6 |
154.9 |
Depreciation and Amortization |
62.8 |
61.0 |
125.1 |
122.7 |
Taxes Other than Income Taxes |
8.2 |
15.8 |
27.6 |
34.6 |
Total Operating Expenses |
479.9 |
359.4 |
996.5 |
689.5 |
Operating Income |
53.5 |
13.7 |
101.8 |
67.1 |
Other Income (Expense) |
|
|
|
|
Interest Expense |
(21.1) |
(18.6) |
(40.4) |
(36.9) |
Equity Earnings |
5.4 |
5.3 |
11.4 |
10.8 |
Other |
2.5 |
12.1 |
6.6 |
14.1 |
Total Other Expense |
(13.2) |
(1.2) |
(22.4) |
(12.0) |
Income Before Income Taxes |
40.3 |
12.5 |
79.4 |
55.1 |
Income Tax Expense (Benefit) |
(0.4) |
(8.3) |
1.1 |
(12.2) |
Net Income |
40.7 |
20.8 |
78.3 |
67.3 |
Net Loss Attributable to Non-Controlling Interest |
(10.8) |
(16.8) |
(31.4) |
(36.6) |
Net Income Attributable to ALLETE |
|
|
|
|
Average Shares of Common Stock |
|
|
|
|
Basic |
57.3 |
56.1 |
57.3 |
54.9 |
Diluted |
57.4 |
56.1 |
57.4 |
54.9 |
Basic Earnings Per Share of Common Stock |
|
|
|
|
Diluted Earnings Per Share of Common Stock |
|
|
|
|
Dividends Per Share of Common Stock |
|
|
|
|
Consolidated Balance Sheet
Millions - Unaudited
|
Jun. 30 |
Dec. 31, |
|
Jun. 30 |
Dec. 31, |
||
|
2023 |
2022 |
|
2023 |
2022 |
||
Assets |
|
|
Liabilities and Equity |
|
|
||
Cash and Cash Equivalents |
|
|
Current Liabilities |
|
|
||
Other Current Assets |
398.3 |
681.6 |
Long-Term Debt |
1,685.9 |
1,648.2 |
||
Property, Plant and Equipment – Net |
4,973.9 |
5,004.0 |
Deferred Income Taxes |
153.6 |
158.1 |
||
Regulatory Assets |
454.5 |
441.0 |
Regulatory Liabilities |
538.0 |
526.1 |
||
Equity Investments |
327.5 |
322.7 |
Defined Benefit Pension and Other Postretirement Benefit Plans |
173.6 |
179.7 |
||
Goodwill and Intangibles – Net |
155.5 |
155.6 |
Other Non-Current Liabilities |
268.0 |
269.0 |
||
Other Non-Current Assets |
210.3 |
204.3 |
Equity |
3,368.5 |
3,348.3 |
||
Total Assets |
|
|
Total Liabilities and Equity |
|
|
||
|
Quarter Ended |
Six Months Ended |
||
ALLETE, Inc. |
June 30 |
June 30 |
||
Income (Loss) |
2023 |
2022 |
2023 |
2022 |
Millions |
|
|
|
|
Regulated Operations |
|
|
|
|
ALLETE Clean Energy |
3.1 |
5.8 |
11.6 |
22.3 |
Corporate and Other |
10.6 |
2.2 |
19.7 |
0.5 |
Net Income Attributable to ALLETE |
|
|
|
|
Diluted Earnings Per Share |
|
|
|
|
Statistical Data |
|
|
|
|
Corporate |
|
|
|
|
Common Stock |
|
|
|
|
High |
|
|
|
|
Low |
|
|
|
|
Close |
|
|
|
|
Book Value |
|
|
|
|
Kilowatt-hours Sold |
|
|
|
|
Millions |
|
|
|
|
Regulated Utility |
|
|
|
|
Retail and Municipal |
|
|
|
|
Residential |
241 |
245 |
562 |
600 |
Commercial |
320 |
314 |
667 |
674 |
Industrial |
1,778 |
1,616 |
3,436 |
3,382 |
Municipal |
110 |
131 |
238 |
289 |
Total Retail and Municipal |
2,449 |
2,306 |
4,903 |
4,945 |
Other Power Suppliers |
786 |
794 |
1,482 |
1,775 |
Total Regulated Utility Kilowatt-hours Sold |
3,235 |
3,100 |
6,385 |
6,720 |
Regulated Utility Revenue |
|
|
|
|
Millions |
|
|
|
|
Regulated Utility Revenue |
|
|
|
|
Retail and Municipal Electric Revenue |
|
|
|
|
Residential |
|
|
|
|
Commercial |
42.9 |
42.6 |
86.9 |
88.0 |
Industrial |
139.7 |
150.2 |
283.1 |
296.7 |
Municipal |
7.6 |
10.0 |
16.5 |
22.1 |
Total Retail and Municipal Electric Revenue |
223.4 |
239.9 |
462.1 |
492.4 |
Other Power Suppliers |
36.3 |
36.9 |
72.2 |
77.9 |
Other (Includes Water and Gas Revenue) |
32.5 |
31.9 |
70.5 |
67.4 |
Total Regulated Utility Revenue |
|
|
|
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808824556/en/
Investor Contact:
Vince Meyer
218-723-3952
vmeyer@allete.com
Source: ALLETE, Inc.