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Otter Tail Corporation Announces Third Quarter Earnings, Increases Consolidated 2024 Annual Earnings Guidance

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Otter Tail (OTTR) reported Q3 2024 financial results with diluted earnings per share decreasing 7% to $2.03 compared to Q3 2023. The company increased its 2024 earnings guidance midpoint by $0.15 to $7.07 per share. The Electric segment earnings rose 16%, while Plastics segment earnings declined 8% due to falling PVC pipe prices. The Manufacturing segment saw a 71% earnings decrease due to lower sales volumes. The company maintains strong liquidity of $544 million and declared a quarterly dividend of $0.4675 per share. Return on equity stands at 20% over the trailing twelve months.

Otter Tail (OTTR) ha riportato i risultati finanziari del terzo trimestre 2024, con utili per azione diluiti in calo del 7% a $2,03 rispetto al terzo trimestre 2023. L'azienda ha aumentato il suo obiettivo di guadagno per il 2024 di $0,15, portandolo a $7,07 per azione. Gli utili del segmento Elettrico sono aumentati del 16%, mentre gli utili del segmento Plastica sono diminuiti dell'8% a causa della riduzione dei prezzi dei tubi in PVC. Il segmento Manifatturiero ha registrato un calo degli utili del 71% a causa di volumi di vendita inferiori. L'azienda mantiene una solida liquidità di $544 milioni e ha dichiarato un dividendo trimestrale di $0,4675 per azione. Il ritorno sul patrimonio netto è pari al 20% negli ultimi dodici mesi.

Otter Tail (OTTR) reportó los resultados financieros del tercer trimestre de 2024, con una disminución del 7% en las ganancias por acción diluida a $2.03 en comparación con el tercer trimestre de 2023. La empresa incrementó su guía de ganancias para 2024 en $0.15, llevándola a $7.07 por acción. Las ganancias del segmento Eléctrico aumentaron un 16%, mientras que las ganancias del segmento Plásticos disminuyeron un 8% debido a la caída de los precios de los tubos de PVC. El segmento de Manufactura experimentó una disminución del 71% en las ganancias debido a menores volúmenes de ventas. La empresa mantiene una sólida liquidez de $544 millones y declaró un dividendo trimestral de $0.4675 por acción. El retorno sobre el patrimonio se sitúa en el 20% durante los últimos doce meses.

Otter Tail (OTTR)는 2024년 3분기 재무 결과를 보고했으며, 희석 주당 이익은 2023년 3분기 대비 7% 감소하여 $2.03에 달했습니다. 회사는 2024년 주당 이익 가이드를 $0.15 상향 조정하여 $7.07로 설정했습니다. 전력 부문의 이익은 16% 증가했으나, 플라스틱 부문의 이익은 PVC 파이프 가격 하락으로 인해 8% 감소했습니다. 제조 부문은 판매량 감소로 인해 71%의 이익 감소를 겪었습니다. 회사는 $544백만의 강력한 유동성을 유지하며, 주당 $0.4675의 분기 배당금을 선언했습니다. 자기자본이익률(ROE)은 최근 12개월 기준으로 20%입니다.

Otter Tail (OTTR) a annoncé ses résultats financiers du troisième trimestre 2024, avec un bénéfice par action dilué en baisse de 7 % à 2,03 $ par rapport au troisième trimestre 2023. L'entreprise a augmenté son estimation de bénéfice pour 2024 de 0,15 $ à 7,07 $ par action. Les bénéfices du segment Électrique ont augmenté de 16 %, tandis que ceux du segment Plastique ont diminué de 8 % en raison de la chute des prix des tuyaux en PVC. Le secteur Manufacturier a connu une diminution de 71 % de ses bénéfices en raison d'une baisse des volumes de vente. L'entreprise maintient une solide liquidité de 544 millions de dollars et a déclaré un dividende trimestriel de 0,4675 $ par action. Le rendement des capitaux propres s'élève à 20 % sur les douze derniers mois.

Otter Tail (OTTR) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024, wobei der verwässerte Gewinn pro Aktie um 7% auf $2,03 im Vergleich zum dritten Quartal 2023 fiel. Das Unternehmen erhöhte seine Gewinnprognose für 2024 um $0,15 auf $7,07 pro Aktie. Die Gewinne im Elektriksegment stiegen um 16%, während die Gewinne im Kunststoffsegment aufgrund sinkender PVC-Rohrpreise um 8% zurückgingen. Das Fertigungssegment verzeichnete einen Rückgang der Gewinne um 71% aufgrund niedrigerer Verkaufszahlen. Das Unternehmen verfügt über eine starke Liquidität von 544 Millionen US-Dollar und beschloss eine vierteljährliche Dividende von $0,4675 pro Aktie. Die Eigenkapitalrendite liegt bei 20% über die letzten zwölf Monate.

Positive
  • Increased 2024 earnings guidance to $6.97-$7.17 per share
  • Electric segment earnings increased 16% ($4 million)
  • Strong liquidity position of $544 million
  • 13% increase in Plastics segment sales volumes
  • 20% Return on equity over trailing twelve months
Negative
  • Q3 diluted EPS decreased 7% to $2.03
  • Manufacturing segment earnings declined 71% ($5 million)
  • Plastics segment earnings decreased 8% ($5 million)
  • 11% decline in PVC pipe sales prices
  • 20.6% decrease in Manufacturing segment revenue

Insights

The Q3 2024 results show mixed performance across segments. The EPS decreased 7% to $2.03, yet the company raised its 2024 guidance midpoint by $0.15 to $7.07 per share. The Electric segment showed strength with a 16% earnings increase, while Manufacturing faced significant headwinds with a 71% earnings decline. The Plastics segment remains resilient despite an 8% earnings decrease.

Key financial metrics include strong liquidity of $544 million and operating cash flow of $322.8 million. The 20% ROE demonstrates robust operational efficiency. The company's strategic investments in wind repowering and facility expansions position it well for future growth, while the diversified business model provides stability through market cycles.

The Electric segment's performance is particularly noteworthy with increased transmission revenue and successful rate case implementation in North Dakota. The wind repowering project represents a strategic move toward cleaner energy while improving efficiency and reducing customer costs. The segment's stable performance, with retail MWh sales up 0.3%, demonstrates the resilience of regulated utilities operations.

The company's significant $259.8 million capital expenditure program, largely focused on electric infrastructure, shows commitment to grid modernization and renewable energy integration. This investment strategy aligns with industry trends toward cleaner energy sources while maintaining reliable service delivery.

FERGUS FALLS, Minn.--(BUSINESS WIRE)-- Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2024.

SUMMARY

  • Midpoint of 2024 earnings guidance increased $0.15 to $7.07 per share.
  • Diluted earnings per share decreased 7% to $2.03 per share compared to the third quarter of 2023.
  • Return on equity of 20% over the trailing twelve months.

CEO OVERVIEW

“Our team members continue to perform well as they navigate changing market conditions,” said President and CEO Chuck MacFarlane. “While third quarter earnings were lower than the same time last year, electric segment earnings increased 16 percent, or $4 million, primarily due to the impact of interim rates in North Dakota and the financial impact of a Federal Energy Regulatory Commission ruling on transmission owner returns on equity. Plastics segment earnings decreased 8 percent, or $5 million, as the sales prices of PVC pipe continue to decline. The manufacturing segment is experiencing demand related headwinds across several of its end markets, resulting in a decrease in earnings of 71 percent, or $5 million, due to lower sales volumes. Year to date earnings are ahead of last year by 4 percent and support the increase to our 2024 earnings guidance.

“Otter Tail Power continues to execute on its significant rate base growth plan, which includes investments to support safe, reliable, increasingly clean and affordable electric service for our customers. Our wind repowering project remains on schedule and we expect to finish the equipment upgrades at the first of four owned wind energy centers later this year. We look forward to completing this project in its entirety next year as it will increase the efficiency of these wind sites while simultaneously lowering customer bills through increased output and available tax credits.

“Our Manufacturing segment continues to face softening end market demand. We continue to take action to tightly manage costs and mitigate the impact of lower sales volumes. Despite this near-term softness, the longer term fundamentals of the segment remain strong. Our expansion project in Georgia is progressing well and we anticipate occupying the new space later this year. We look forward to bringing this additional capacity online in early 2025 to better serve our customers in the southeast.

“Despite Plastics segment earnings decreasing from the same time last year, the segment continues to perform better than anticipated, capitalizing on customer sales volume growth. Sales prices of PVC pipe continue to decline but at a slower rate than expected. The first phase of our expansion project at Vinyltech in Arizona is nearly complete and we anticipate adding large diameter PVC pipe production capability at this location later this year.

“Our diversified business model continues to serve us and our stakeholders well as it generates incremental earnings and cash flow for us to fund our rate base growth plan without any equity needs. As of September 30, 2024, our total available liquidity was $544 million.

“We are increasing and tightening our 2024 diluted earnings per share guidance to a range of $6.97 to $7.17 from our previous range of $6.77 to $7.07.”

QUARTERLY DIVIDEND

On November 4, 2024, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.4675 per share. This dividend is payable December 10, 2024 to shareholders of record on November 15, 2024.

CASH FLOWS AND LIQUIDITY

Our consolidated cash provided by operating activities for the nine months ended September 30, 2024 was $322.8 million compared to $318.5 million for the nine months ended September 30, 2023, with the increase primarily due to increased earnings from our Plastics segment, partially offset by increased working capital at our Manufacturing segment.

Investing activities for the nine months ended September 30, 2024 included capital expenditures of $259.8 million and a $50.1 investment in long-term marketable securities. Capital expenditures during the period were largely within our Electric segment, including investments in our wind repowering and advanced metering projects, and also included continued investments in our facility expansion projects in Arizona and Georgia. Financing activities for the nine months ended September 30, 2024 included the issuance of $120.0 million of long-term debt at Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments, and support operating activities. Financing activities for the nine months ended September 30, 2024 also included net short-term borrowings of $14.0 million and dividend payments of $58.7 million.

As of September 30, 2024, we had $170.0 million and $93.8 million of available liquidity under our Otter Tail Corporation and Otter Tail Power Credit Agreements, respectively, along with $280.0 million of available cash and cash equivalents, for total available liquidity of $543.8 million.

SEGMENT PERFORMANCE

Electric Segment

 

Three Months Ended September 30,

 

 

 

 

($ in thousands)

 

2024

 

 

 

2023

 

 

Change

 

% Change

Operating Revenues

$

130,380

 

$

130,326

 

$

54

 

 

%

Net Income

 

28,530

 

 

 

24,565

 

 

 

3,965

 

 

16.1

 

 

 

 

 

 

 

 

 

Retail MWh Sales

 

1,304,446

 

 

 

1,300,324

 

 

 

4,122

 

 

0.3

%

Heating Degree Days

 

2

 

 

 

3

 

 

 

(1

)

 

(33.3

)

Cooling Degree Days

 

378

 

 

 

317

 

 

 

61

 

 

19.2

 

The following table shows heating degree days (HDDs) and cooling degree days (CDDs) as a percent of normal.

 

Three Months Ended
September 30,

 

2024

 

2023

HDDs

4.7

%

 

6.3

%

CDDs

111.5

%

 

92.2

%

The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions for the three months ended September 30, 2024 and 2023.

 

2024 vs
Normal

 

2024 vs
2023

 

2023 vs
Normal

Effect on Diluted Earnings Per Share

$

0.01

 

$

0.02

 

$

(0.01

)

Operating Revenues increased $0.1 million compared to the same period last year. Increases in retail and transmission revenue were largely offset by decreased fuel recovery revenues. Retail revenue increased due to an interim rate increase in North Dakota in connection with our current rate case and the impact of favorable weather. Transmission revenue increased due to a reduction in our estimated refund liability in connection with an order issued by FERC regarding a contested matter related to the allowed ROE during certain prior periods, which resulted in an additional nonrecurring revenue in the current period. Fuel recovery revenues decreased due to a decrease in generation from our coal-fired and natural gas facilities, thus lowering fuel consumption, as well as decreased market energy costs.

Net Income increased $4.0 million primarily due to the impact of favorable weather, interim rates in North Dakota, and the reduction of an estimated refund, as described above, as well as a decrease in property taxes in North Dakota, partially offset by increased depreciation and interest expense.

Manufacturing Segment

 

Three Months Ended September 30,

 

 

 

 

(in thousands)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Operating Revenues

$

79,896

 

$

100,678

 

$

(20,782

)

 

(20.6

)%

Net Income

 

2,174

 

 

 

7,446

 

 

 

(5,272

)

 

(70.8

)

Operating Revenues decreased $20.8 million primarily due to a 13% decrease in sales volumes, with declines experienced primarily in the recreational vehicle, agriculture, construction, and lawn and garden end markets. Sales volumes have softened due to lower end market demand and inventory management efforts by manufacturers and dealers. A 37% decline in scrap metal revenues, largely driven by lower production volumes, and a 6% decrease in steel costs, which are passed through to customers, also contributed to the decrease in operating revenues.

Net Income decreased $5.3 million primarily due to lower sales volumes and lower scrap metal sales, as described above, as well as a decrease in margins at both our contract metal fabricator and our plastics thermoforming manufacturer. Decreased profit margins were driven by the mix of products sold in the current period compared to the same period last year, and reduced leveraging of fixed manufacturing costs resulting from decreased production and sales volumes.

Plastics Segment

 

Three Months Ended September 30,

 

 

 

 

(in thousands)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Operating Revenues

$

127,757

 

$

127,052

 

$

705

 

 

0.6

%

Net Income

 

54,479

 

 

 

59,162

 

 

 

(4,683

)

 

(7.9

)

Operating Revenues increased $0.7 million as a 13% increase in sales volumes, driven by continued customer sales volume growth and distributor and end market demand, was largely offset by continued declining sales prices. Sales prices have steadily declined throughout the year and decreased 11% compared to the same period last year.

Net Income decreased $4.7 million primarily due to decreased sales prices, as described above, and increased general and administrative expenses.

Corporate

 

Three Months Ended September 30,

 

 

 

 

(in thousands)

 

2024

 

 

 

2023

 

 

$ Change

 

% Change

Net Income

$

296

 

$

801

 

$

(505

)

 

(63.0

)%

Net Income decreased $0.5 million primarily due to increased insurance and employee benefit expenses, partially offset by increased investment income earned on our short- and long-term investments, as well as gains on our corporate-owned life insurance policies.

2024 BUSINESS OUTLOOK

We are increasing our 2024 diluted earnings per share range to $6.97 to $7.17. We expect our earnings mix in 2024, based on our updated guidance, to be approximately 30% from our Electric segment and 70% from our Manufacturing and Plastics segments, net of corporate costs.

The segment components of our 2024 diluted earnings per share guidance compared with actual earnings for 2023 are as follows:

 

 

 

 

 

2024 EPS Guidance

 

2024 EPS Guidance

 

 

 

2023 EPS

by Segment

 

August 5, 2024

 

November 4, 2024

 

 

 

Low

 

High

 

Low

 

High

Electric

 

 

$

2.01

 

 

$

2.13

 

 

$

2.17

 

 

$

2.13

 

 

$

2.17

 

Manufacturing

 

 

 

0.51

 

 

 

0.36

 

 

 

0.40

 

 

 

0.30

 

 

 

0.34

 

Plastics

 

 

 

4.47

 

 

 

4.35

 

 

 

4.54

 

 

 

4.61

 

 

 

4.70

 

Corporate

 

 

 

0.01

 

 

 

(0.07

)

 

 

(0.04

)

 

 

(0.07

)

 

 

(0.04

)

Total

 

 

$

7.00

 

 

$

6.77

 

 

$

7.07

 

 

$

6.97

 

 

$

7.17

 

Return on Equity

 

 

 

22.1

%

 

 

18.3

%

 

 

19.0

%

 

 

18.8

%

 

 

19.3

%

The following items contribute to our revised 2024 earnings guidance:

Electric Segment - We are maintaining our guidance, expecting earnings to increase 7% over 2023.

Manufacturing Segment - We are decreasing our segment earnings guidance based on:

  • Anticipated lower sales volumes in the fourth quarter as demand continues to soften across most end markets and manufacturers tightly manage inventories through year-end, and
  • Product pricing pressures and lower scrap revenues within our metal fabrication business, partially offset by reduced operating costs as we align our production costs with the current demand environment.

Plastics Segment - We are increasing our segment earnings guidance based on:

  • Better than expected financial results in the third quarter of 2024, and
  • A slower decline in product sales prices than previously expected and increased sales volumes in the fourth quarter of 2024.

Corporate Costs - We are maintaining our corporate cost guidance.

CONFERENCE CALL AND WEBCAST

The corporation will host a live webcast on Tuesday, November 5, 2024, at 10:00 a.m. CT to discuss its financial and operating performance.

The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.

If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call.

FORWARD-LOOKING STATEMENTS

Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “outlook,” “plan,” “possible,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2024 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures; rate base levels and rate base growth; risks associated with energy markets; the availability and pricing of resource materials; inflationary cost pressures; attracting and maintaining a qualified and stable workforce; changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin; long-term investment risk; seasonal weather patterns and extreme weather events; counterparty credit risk; future business volumes with key customers; reductions in our credit ratings; our ability to access capital markets on favorable terms; assumptions and costs relating to funding our employee benefit plans; our subsidiaries’ ability to make dividend payments; cybersecurity threats or data breaches; the impact of government legislation and regulation including foreign trade policy and environmental; health and safety laws and regulations; changes in tax laws and regulations; the impact of climate change including compliance with legislative and regulatory changes to address climate change; expectations regarding regulatory proceedings, including state utility commission approval of resource plans, assigned service areas, the siting and construction of major facilities, capital structure, and allowed customer rates; actual and threatened claims or litigation; and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

Category: Earnings

About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.

 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands, except per-share amounts)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

130,380

 

 

$

130,326

 

 

$

384,696

 

 

$

395,997

 

Product Sales

 

207,653

 

 

 

227,730

 

 

 

642,741

 

 

 

638,856

 

Total Operating Revenues

 

338,033

 

 

 

358,056

 

 

 

1,027,437

 

 

 

1,034,853

 

Operating Expenses

 

 

 

 

 

 

 

Electric Production Fuel

 

14,991

 

 

 

19,603

 

 

 

45,009

 

 

 

45,928

 

Electric Purchased Power

 

10,735

 

 

 

10,895

 

 

 

42,507

 

 

 

57,932

 

Electric Operating and Maintenance Expense

 

43,737

 

 

 

43,534

 

 

 

136,367

 

 

 

134,604

 

Cost of Products Sold (excluding depreciation)

 

111,444

 

 

 

118,303

 

 

 

342,962

 

 

 

351,330

 

Nonelectric Selling, General, and Administrative Expenses

 

18,829

 

 

 

15,863

 

 

 

55,896

 

 

 

51,433

 

Depreciation and Amortization

 

27,051

 

 

 

24,548

 

 

 

79,579

 

 

 

72,636

 

Electric Property Taxes

 

3,705

 

 

 

4,194

 

 

 

11,691

 

 

 

13,151

 

Total Operating Expenses

 

230,492

 

 

 

236,940

 

 

 

714,011

 

 

 

727,014

 

Operating Income

 

107,541

 

 

 

121,116

 

 

 

313,426

 

 

 

307,839

 

Other Income and (Expense)

 

 

 

 

 

 

 

Interest Expense

 

(11,173

)

 

 

(9,175

)

 

 

(31,225

)

 

 

(28,285

)

Nonservice Components of Postretirement Benefits

 

2,367

 

 

 

2,289

 

 

 

7,197

 

 

 

7,122

 

Other Income (Expense), net

 

5,421

 

 

 

2,471

 

 

 

14,491

 

 

 

7,841

 

Income Before Income Taxes

 

104,156

 

 

 

116,701

 

 

 

303,889

 

 

 

294,517

 

Income Tax Expense

 

18,677

 

 

 

24,727

 

 

 

57,077

 

 

 

58,093

 

Net Income

$

85,479

 

 

$

91,974

 

 

$

246,812

 

 

$

236,424

 

 

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding:

 

 

 

 

 

 

 

Basic

 

41,800

 

 

 

41,680

 

 

 

41,770

 

 

 

41,663

 

Diluted

 

42,081

 

 

 

42,058

 

 

 

42,068

 

 

 

42,028

 

Earnings Per Share:

 

 

 

 

 

 

 

Basic

$

2.04

 

 

$

2.21

 

 

$

5.91

 

 

$

5.67

 

Diluted

$

2.03

 

 

$

2.19

 

 

$

5.87

 

 

$

5.63

 

 

OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)

 

 

September 30,

 

December 31,

(in thousands)

 

2024

 

 

 

2023

 

Assets

 

 

 

Current Assets

 

 

 

Cash and Cash Equivalents

$

280,020

 

$

230,373

Receivables, net of allowance for credit losses

 

186,273

 

 

 

157,143

 

Inventories

 

153,233

 

 

 

149,701

 

Regulatory Assets

 

7,860

 

 

 

16,127

 

Other Current Assets

 

22,927

 

 

 

16,826

 

Total Current Assets

 

650,313

 

 

 

570,170

 

Noncurrent Assets

 

 

 

Investments

 

121,421

 

 

 

62,516

 

Property, Plant and Equipment, net of accumulated depreciation

 

2,604,869

 

 

 

2,418,375

 

Regulatory Assets

 

95,537

 

 

 

95,715

 

Intangible Assets, net of accumulated amortization

 

6,018

 

 

 

6,843

 

Goodwill

 

37,572

 

 

 

37,572

 

Other Noncurrent Assets

 

51,009

 

 

 

51,377

 

Total Noncurrent Assets

 

2,916,426

 

 

 

2,672,398

 

Total Assets

$

3,566,739

 

 

$

3,242,568

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

Current Liabilities

 

 

 

Short-Term Debt

$

67,401

 

 

$

81,422

 

Accounts Payable

 

88,885

 

 

 

94,428

 

Accrued Salaries and Wages

 

31,320

 

 

 

38,134

 

Accrued Taxes

 

29,150

 

 

 

26,590

 

Regulatory Liabilities

 

43,685

 

 

 

25,408

 

Other Current Liabilities

 

39,149

 

 

 

43,775

 

Total Current Liabilities

 

299,590

 

 

 

309,757

 

Noncurrent Liabilities and Deferred Credits

 

 

 

Pension Benefit Liability

 

32,388

 

 

 

33,101

 

Other Postretirement Benefits Liability

 

28,074

 

 

 

27,676

 

Regulatory Liabilities

 

282,997

 

 

 

276,547

 

Deferred Income Taxes

 

251,105

 

 

 

237,273

 

Deferred Tax Credits

 

14,613

 

 

 

15,172

 

Other Noncurrent Liabilities

 

80,978

 

 

 

75,977

 

Total Noncurrent Liabilities and Deferred Credits

 

690,155

 

 

 

665,746

 

Commitments and Contingencies

 

 

 

Capitalization

 

 

 

Long-Term Debt

 

943,663

 

 

 

824,059

 

Shareholders’ Equity

 

 

 

Common Shares

 

209,140

 

 

 

208,553

 

Additional Paid-In Capital

 

427,751

 

 

 

426,963

 

Retained Earnings

 

994,461

 

 

 

806,342

 

Accumulated Other Comprehensive Income

 

1,979

 

 

 

1,148

 

Total Shareholders' Equity

 

1,633,331

 

 

 

1,443,006

 

Total Capitalization

 

2,576,994

 

 

 

2,267,065

 

Total Liabilities and Shareholders' Equity

$

3,566,739

 

 

$

3,242,568

 

 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

Nine Months Ended September 30,

(in thousands)

 

2024

 

 

 

2023

 

Operating Activities

 

 

 

Net Income

$

246,812

 

 

$

236,424

 

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

 

 

 

Depreciation and Amortization

 

79,579

 

 

 

72,636

 

Deferred Tax Credits

 

(559

)

 

 

(558

)

Deferred Income Taxes

 

8,840

 

 

 

10,800

 

Investment Gains

 

(5,259

)

 

 

(3,734

)

Stock Compensation Expense

 

8,082

 

 

 

6,975

 

Other, net

 

(2,167

)

 

 

(164

)

Change in Operating Assets and Liabilities:

 

 

 

Receivables

 

(29,130

)

 

 

(48,782

)

Inventories

 

(2,198

)

 

 

4,873

 

Regulatory Assets

 

7,209

 

 

 

8,387

 

Other Assets

 

(2,785

)

 

 

3,899

 

Accounts Payable

 

3,180

 

 

 

(511

)

Accrued and Other Liabilities

 

(5,745

)

 

 

13,858

 

Regulatory Liabilities

 

24,083

 

 

 

21,601

 

Pension and Other Postretirement Benefits

 

(7,167

)

 

 

(7,209

)

Net Cash Provided by Operating Activities

 

322,775

 

 

 

318,495

 

Investing Activities

 

 

 

Capital Expenditures

 

(259,750

)

 

 

(229,849

)

Proceeds from Disposal of Noncurrent Assets

 

6,684

 

 

 

4,746

 

Purchases of Investments and Other Assets

 

(59,100

)

 

 

(6,915

)

Net Cash Used in Investing Activities

 

(312,166

)

 

 

(232,018

)

Financing Activities

 

 

 

Net (Repayments) Borrowings on Short-Term Debt

 

(14,021

)

 

 

43,292

 

Proceeds from Issuance of Long-Term Debt

 

120,000

 

 

 

 

Dividends Paid

 

(58,693

)

 

 

(54,792

)

Payments for Shares Withheld for Employee Tax Obligations

 

(6,457

)

 

 

(3,088

)

Other, net

 

(1,791

)

 

 

(1,671

)

Net Cash Provided by (Used in) Financing Activities

 

39,038

 

 

 

(16,259

)

Net Change in Cash and Cash Equivalents

 

49,647

 

 

 

70,218

 

Cash and Cash Equivalents at Beginning of Period

 

230,373

 

 

 

118,996

 

Cash and Cash Equivalents at End of Period

$

280,020

 

 

$

189,214

 

 

OTTER TAIL CORPORATION

SEGMENT RESULTS (unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

130,380

 

 

$

130,326

 

 

$

384,696

 

 

$

395,997

 

Manufacturing

 

79,896

 

 

 

100,678

 

 

 

275,961

 

 

 

309,936

 

Plastics

 

127,757

 

 

 

127,052

 

 

 

366,780

 

 

 

328,920

 

Total Operating Revenues

$

338,033

 

 

$

358,056

 

 

$

1,027,437

 

 

$

1,034,853

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

 

Electric

$

36,471

 

 

$

33,142

 

 

$

88,108

 

 

$

88,427

 

Manufacturing

 

2,683

 

 

 

8,829

 

 

 

19,699

 

 

 

26,657

 

Plastics

 

73,745

 

 

 

80,119

 

 

 

219,136

 

 

 

200,836

 

Corporate

 

(5,358

)

 

 

(974

)

 

 

(13,517

)

 

 

(8,081

)

Total Operating Income

$

107,541

 

 

$

121,116

 

 

$

313,426

 

 

$

307,839

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

Electric

$

28,530

 

 

$

24,565

 

 

$

69,486

 

 

$

67,420

 

Manufacturing

 

2,174

 

 

 

7,446

 

 

 

14,271

 

 

 

20,276

 

Plastics

 

54,479

 

 

 

59,162

 

 

 

161,829

 

 

 

148,240

 

Corporate

 

296

 

 

 

801

 

 

 

1,226

 

 

 

488

 

Total Net Income

$

85,479

 

 

$

91,974

 

 

$

246,812

 

 

$

236,424

 

 

Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535

Investor Contact: Beth Eiken, Manager of Investor Relations, (701) 451-3571

Source: Otter Tail Corporation

FAQ

What is Otter Tail 's (OTTR) new earnings guidance for 2024?

Otter Tail increased its 2024 earnings guidance to $6.97-$7.17 per share, up from the previous range of $6.77-$7.07.

How did OTTR's Q3 2024 earnings compare to Q3 2023?

OTTR's Q3 2024 diluted earnings per share decreased 7% to $2.03 compared to the same quarter in 2023.

What was OTTR's dividend announcement for Q3 2024?

OTTR declared a quarterly dividend of $0.4675 per share, payable December 10, 2024, to shareholders of record on November 15, 2024.

What is Otter Tail 's (OTTR) current liquidity position?

As of September 30, 2024, OTTR's total available liquidity was $543.8 million, including $280 million in cash and cash equivalents.

Otter Tail Corp

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