Increases 2014 Earnings Guidance to $1.60 to $1.80 per Share
Board of Directors Declares Quarterly Dividend
FERGUS FALLS, Minn., May 5, 2014 (GLOBE NEWSWIRE) -- Otter Tail Corporation (Nasdaq:OTTR) today announced financial results for the quarter ended March 31, 2014.
- Consolidated revenues were $240.5 million compared with $218.0 million for the first quarter of 2013.
- Consolidated net income and diluted earnings from continuing operations totaled $21.4 million and $0.59 per share, respectively, compared with $15.2 million and $0.41 per share for the first quarter of 2013.
- The corporation is increasing its 2014 earnings guidance range to $1.60 to $1.80 per diluted share from its previously announced range of $1.55 to $1.75, based on its strong first quarter performance.
"With consolidated revenues up more than 10% and consolidated net income from continuing operations up over 40% compared with first quarter last year, we are more than pleased with our 2014 first quarter results," said Otter Tail Corporation CEO Jim McIntyre.
"Late last year and again this quarter investors saw an earnings uplift from our utility rate base growth strategy. The regulatory mechanisms we discussed in investor communications throughout last year have taken effect, allowing for a return on the funds we have invested in three CapX2020 transmission projects, two 345-kv transmission projects deemed 'multi-value projects,' or MVPs, by the Midcontinent Independent System Operator (MISO), and the environmental upgrade at Big Stone Plant.
"In addition, Otter Tail Power Company's electricity sales through a prolonged, colder-than-normal winter boosted our electric segment net income.
"Earnings from our manufacturing and infrastructure companies under Varistar, although down in some cases compared with first quarter last year, were generally in line with our expectations for first quarter this year—the result of our initiatives to drive operational excellence. Foley, in particular, continues to improve its profitability through better project management and bid estimating. And corporate costs were down significantly.
"On the strength of our discipline, strategy, and first quarter results, we are increasing our overall guidance for 2014 diluted earnings per share to $1.60 to $1.80 from our previously announced range of $1.55 to $1.75."
Cash Flow from Operations, Liquidity and Financing
The corporation's consolidated cash used in continuing operations for the quarter ended March 31, 2014 was $18.9 million compared with $10.2 million in cash provided by continuing operations for the quarter ended March 31, 2013. Contributing to the $29.1 million change between the quarters was a $21.2 million increase in cash used for working capital items associated with quarter over quarter revenue growth and a $10.0 million increase in discretionary contributions to the corporation's pension plan. The following table presents the status of the corporation's lines of credit as of March 31, 2014:
|(in thousands)|| |
| In Use On |
| Restricted due to |
Letters of Credit
| Available on |
|Otter Tail Corporation Credit Agreement||$ 150,000||$ 11,899||$ 659||$ 137,442|
|Otter Tail Power Company Credit Agreement||170,000||--||3,830||166,170|
|Total||$ 320,000||$ 11,899||$ 4,489||$ 303,612|
On February 27, 2014 Otter Tail Power Company issued $150 million in senior unsecured notes under a Note Purchase Agreement entered into on August 14, 2013. A portion of the proceeds of the notes were used to retire Otter Tail Power Company's $40.9 million unsecured term loan and to repay $82.5 million of short-term debt then outstanding under the Otter Tail Power Company Credit Agreement. Remaining proceeds of the notes will be used to fund planned construction program expenditures.
Board of Directors Declared Quarterly Dividend
On May 2, 2014 the corporation's Board of Directors declared a quarterly common stock dividend of $0.3025 per share. This dividend is payable June 10, 2014 to shareholders of record on May 15, 2014.
Segment Performance Summary
Electric revenues and net income were $119.1 million and $16.7 million, respectively, compared with $101.0 million and $11.9 million for the first quarter of 2013.
The following table shows Heating Degree Days as a percent of normal:
|Three Months ended March 31,|
Retail electric revenues increased $13.2 million as a result of:
- a $5.7 million increase in fuel clause adjustment revenues and fuel and purchased power costs recovered in base rates, driven by an 8.2% increase in fuel costs per kilowatt-hour (kwh) generated at Otter Tail Power Company's fuel fired generating units and a 43.2% increase in prices for power purchased to serve retail customers as a result of higher demand due to colder weather in the first quarter of 2014 compared to the first quarter of 2013,
- a $3.4 million increase in revenues related to a 6.7% increase in retail kwh sales, of which: $1.8 million is attributed to colder weather in 2014, $0.8 million is related to increased sales to a pipeline customer and approximately $0.8 million is from increased sales to residential and commercial customers due, in part, to improved economic conditions and customer growth in Otter Tail Power Company's service territory,
- a $2.6 million increase in Environmental Cost Recovery rider revenues related to earning a return in Minnesota and North Dakota on increasing amounts invested in the AQCS under construction at Big Stone Plant, and
- a $2.3 million increase in Transmission Cost Recovery rider revenues resulting from increased investment in transmission lines,
- a $0.9 million decrease in Renewable Resource Adjustment rider (RRA) revenues in North Dakota as a result of: (1) declining book values of renewable assets due to depreciation and (2) reduced RRA revenue requirements related to earning more federal Production Tax Credits (PTCs) as a result of a 33.0% increase in kwhs generated by Otter Tail Power Company's wind turbines eligible for PTCs.
Wholesale electric revenues from company-owned generation increased $3.3 million as a result of a 163% increase in revenue per wholesale kwh sold and a 13.9% increase in wholesale kwhs sold. The increase in wholesale kwh sales and prices was driven by increased wholesale market demand resulting from colder weather in the first quarter of 2014. Otter Tail Power Company was able to serve the higher demand from both wholesale and retail customers as a result of improved availability of Coyote Station, which was shut down for generator repairs during the first seven weeks of 2013, and as a result of a 30.9% increase in kwhs generated from company-owned wind turbines.
Net revenue from energy trading activities, including net mark-to-market gains and losses on forward energy contracts, decreased $0.6 million mainly as a result of decreased trading activity and the incurrence of losses on contracts entered into and settled in the first quarter of 2014.
Other electric operating revenues increased $2.2 million, reflecting:
- a $1.4 million increase in MISO tariff revenues resulting from increased investment in regional transmission lines and returns on and recovery of CapX2020 and MISO-designated MVP investment costs and operating expenses, and
- a $0.8 million increase in revenue from various other sources including a $0.3 million increase in transmission related revenue under an integrated transmission agreement and a $0.2 million increase in revenue from steam sales at Big Stone Plant.
Production fuel costs increased $4.1 million as a result of a 13.4% increase in kwhs generated from Otter Tail Power Company's steam-powered and combustion turbine generators in combination with an 8.2% increase in the cost of fuel per kwh generated. The increase in kwh generation was facilitated by improved availability of Coyote Station. The cost of purchased power to serve retail customers increased $5.1 million due to a 43.2% increase in costs per kwh purchased, partially offset by an 8.5% decrease in kwhs purchased. The increase in costs per kwh purchased was driven by increased wholesale market demand resulting from colder weather.
Electric operating and maintenance expenses increased $2.2 million as a result of:
- a $1.2 million increase in MISO transmission tariff charges related to increasing investments in regional CapX2020 and MISO-designated MVPs,
- a $1.2 million increase in labor costs due to increased wages and hours worked and accrued incentives related to Otter Tail Power Company's improved performance quarter over quarter, and
- increases of $0.1 million to $0.2 million in each of the following categories of expense: generating plant material and supplies, electric grid software maintenance, travel expenses, regulatory assessment charges and insurance premiums,
- a $1.3 million decrease in labor loading charges as a result of a reduction in pension and postretirement benefit costs related to an increase in discount rates and pension fund contributions.
Manufacturing revenues and net income were $55.4 million and $2.9 million, respectively, compared with $53.2 million and $3.3 million for the first quarter of 2013.
- At BTD, revenues increased $4.9 million mainly as a result of increased sales to manufacturers of recreational equipment. BTD's revenue increase was offset by increased material costs and increases in support salaries, wages and product handling costs to support anticipated sales growth in 2014. A $0.7 million increase in BTD's administrative and general expenses related to increased labor and benefit costs was mostly offset by decreases of $0.3 million in depreciation expense and $0.3 million in income taxes, resulting in a $0.1 million decrease in quarter over quarter net income at BTD.
- At T.O. Plastics, revenues decreased $2.6 million and net income decreased $0.4 million, mainly due to a significant reduction in sales of a high volume product that a customer began producing on its own in 2014.
Plastics revenues and net income were $40.5 million and $3.5 million, respectively, compared with $37.4 million and $3.9 million for the first quarter of 2013. The increase in revenues is the result of a 10.3% increase in pounds of polyvinyl chloride (PVC) pipe sold, partially offset by a 1.8% decrease in the price per pound of pipe sold. States with significant increases in sales were Colorado, California, Arizona, Nevada, Texas and Minnesota. Cost of products sold increased by $3.3 million, mostly due to the increase in sales volume, but also due to a 1.1% increase in the cost per pound of pipe sold related to higher PVC resin costs. A $0.7 million increase in operating expenses, mainly related to increased wage and benefit costs, in combination with the $0.2 million reduction in gross margins was partially offset by a $0.5 million decrease in income tax expense, resulting in the $0.4 million decline in Plastics segment net income between the quarters.
Construction revenues and net loss were $25.5 million and $0.6 million, respectively, compared with $26.4 million and $1.1 million for the first quarter of 2013.
- Foley broke even in the first quarter of 2014 compared with losing $0.3 million in the first quarter of 2013, despite a $1.8 million decrease in revenues. Foley's improved results are reflective of more selective bidding on projects and improved cost control processes in construction management, resulting in a $1.0 million improvement in gross margins between quarters. The increase in gross margins was partially offset by a $0.5 million increase in labor and benefit expenses and a $0.2 million increase in income taxes.
- Aevenia's revenues increased $0.9 million and its net loss decreased $0.2 million between the quarters. Aevenia's revenue increase was offset by a commensurate increase in costs and their operating expenses were flat between quarters. The $0.2 million increase in Aevenia's net income is attributable to an after-tax gain on the sale of its data communication installation and services business in the first quarter of 2014.
- Corporate costs, net-of-tax, decreased $1.2 million as a result of a gain on the sale of a low income housing investment and reductions in stock based performance incentive and health care benefit costs. Corporate costs also decreased $0.6 million due to a decrease in interest expense related to the early retirement, in November 2013, of $47.7 million of the corporation's outstanding 9.0% notes due December 15, 2016.
2014 Business Outlook
The corporation is increasing its consolidated diluted earnings per share guidance for 2014 to be in the range of $1.60 to $1.80 from its previously announced range of $1.55 to $1.75. This updated guidance reflects the current mix of businesses owned by the corporation. It considers the cyclical nature of some of the corporation's businesses and reflects challenges, as well as the corporation's plans and strategies for improving future operating results.
Segment components of the corporation's 2014 earnings per share guidance range are as follows:
| Previous 2014 EPS |
| Current 2014 EPS |
|Total – Continuing Operations||$1.55||$1.75||$1.60||$1.80|
Contributing to our updated earnings guidance for 2014 are the following items:
- The corporation expects 2014 net income for its Electric segment to increase from its previously issued guidance primarily as a result of the strong first quarter results driven in part by colder than normal weather. Items affecting the corporation's 2014 Electric segment earnings guidance compared with 2013 earnings include:
- Rider recovery increases, including environmental riders in Minnesota and North Dakota related to the Big Stone AQCS environmental upgrades while under construction, and
- A decrease in pension costs of approximately $2.0 million as a result of an increase in the discount rate from 4.5% to 5.3%, offset by
- An increase in interest costs as a result of $150 million of fixed rate long term debt put in place in the first quarter of 2014 to finance the Big Stone Plant AQCS and transmission projects, and
- An increase in operating and maintenance costs primarily for increased labor and a planned outage for maintenance at Hoot Lake Plant.
- The corporation is maintaining its original 2014 earnings expectations for its Manufacturing segment, which are expected to be unchanged from 2013 results due to the following factors:
- An increase at BTD due to increased order volume as a result of expanded relationships with customers in recreational vehicle, lawn and garden, industrial and commercial end markets BTD serves, offset by
- A decrease in earnings from T.O. Plastics due to a reduction in sales of a product the customer will be producing on its own in 2014.
- Backlog for the manufacturing companies of approximately $115 million for 2014 compared with $97 million one year ago.
- The corporation is raising its expectations for 2014 net income for its Plastics segment from its original guidance due to a stronger than expected first quarter.
- The corporation is maintaining its original 2014 net income guidance for its Construction segment. Net income is expected to be higher in 2014 than in 2013 as a result of improved cost control processes in construction management and more selective bidding on projects with the potential for higher margins. Backlog in place for the construction businesses is $85 million for 2014 compared with $100 million one year ago.
- Corporate costs for 2014 are expected to be slightly lower than original guidance as a result of a sale of an investment in tax-credit-qualified low income housing rental property, which was not expected when the corporation's original guidance was given, and improved performance in the corporation's self-insured health plan.
The corporation reviews its portfolio of companies at least annually to see where additional opportunities exist to improve its risk profile, improve credit metrics and generate additional sources of cash to support the future capital expenditure plans of its Electric segment.
The following table shows our 2013 capital expenditures and 2014 through 2018 anticipated capital expenditures and electric utility average rate base:
|Transmission||$ 53||$ 46||$ 97||$ 52||$ 56|
|Total Electric Segment||$ 149||$ 172||$ 145||$ 141||$ 97||$ 102|
|Manufacturing and Infrastructure Segments||15||23||19||26||20||24|
|Total Capital Expenditures||$ 164||$ 195||$ 164||$ 167||$ 117||$ 126|
|Total Electric Utility Average Rate Base||$ 885||$ 991||$1,062||$1,120||$1,152|
Execution on the currently anticipated electric utility capital expenditure plan is expected to grow rate base and be a key driver in increasing utility earnings over the 2014 through 2018 timeframe.
CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on Tuesday, May 6, 2014, at 10:00 a.m. CDT to discuss the company's financial and operating performance.
The presentation will be posted on the corporation's website before the webcast. To access the live webcast go to www.ottertail.com/presentations.cfm and select "Webcast". Please allow extra time prior to the call to visit the site and download any necessary software that may be needed to listen to the webcast. An archived copy of the webcast will be available on our website shortly following the call.
If you are interested in asking a question during the live webcast, the Dial-In Number is: 877-312-8789.
Risk Factors and Forward-Looking Statements that Could Affect Future Results
The information in this release includes certain forward-looking information, including 2014 expectations, made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Although the corporation believes its expectations are based on reasonable assumptions, actual results may differ materially from those expectations. The following factors, among others, could cause actual results for the corporation to differ materially from those discussed in the forward-looking statements:
- Federal and state environmental regulation could require the corporation to incur substantial capital expenditures and increased operating costs.
- Volatile financial markets and changes in the corporation's debt ratings could restrict its ability to access capital and could increase borrowing costs and pension plan and postretirement health care expenses.
- The corporation relies on access to both short- and long-term capital markets as a source of liquidity for capital requirements not satisfied by cash flows from operations. If the corporation is not able to access capital at competitive rates, its ability to implement its business plans may be adversely affected.
- Disruptions, uncertainty or volatility in the financial markets can also adversely impact the corporation's results of operations, the ability of its customers to finance purchases of goods and services, and its financial condition, as well as exert downward pressure on stock prices and/or limit its ability to sustain its current common stock dividend level.
- The corporation made $20.0 million in discretionary contributions to its defined benefit pension plan in January 2014. The corporation could be required to contribute additional capital to the pension plan in the future if the market value of pension plan assets significantly declines, plan assets do not earn in line with the corporation's long-term rate of return assumptions or relief under the Pension Protection Act is no longer granted.
- Any significant impairment of the corporation's goodwill would cause a decrease in its asset values and a reduction in its net operating income.
- Declines in projected operating cash flows at any of the corporation's reporting units may result in goodwill impairments that could adversely affect its results of operations and financial position, as well as financing agreement covenants.
- The corporation currently has $7.3 million of goodwill and a $1.1 million indefinite-lived trade name recorded on its consolidated balance sheet related to the acquisition of Foley in 2003. Foley net earnings improved $10.4 million between 2012 and 2013. If future expected operating profits do not meet the corporation's projections, the reductions in anticipated cash flows from Foley may indicate its fair value is less than its book value, resulting in an impairment of some or all of the goodwill and indefinite-lived intangible assets associated with Foley along with a corresponding charge against earnings.
- The inability of the corporation's subsidiaries to provide sufficient earnings and cash flows to allow the corporation to meet its financial obligations and debt covenants and pay dividends to its shareholders could have an adverse effect on the corporation.
- Economic conditions could negatively impact the corporation's businesses.
- If the corporation is unable to achieve the organic growth it expects, its financial performance may be adversely affected.
- The corporation's plans to grow and realign its business mix through capital projects, acquisitions and dispositions may not be successful, which could result in poor financial performance.
- The corporation may, from time to time, sell assets to provide capital to fund investments in its electric utility business or for other corporate purposes, which could result in the recognition of a loss on the sale of any assets sold and other potential liabilities. The sale of any of the corporation's businesses could expose the corporation to additional risks associated with indemnification obligations under the applicable sales agreements and any related disputes.
- The corporation's plans to grow and operate its manufacturing and infrastructure businesses could be limited by state law.
- Significant warranty claims and remediation costs in excess of amounts normally reserved for such items could adversely affect the corporation's results of operations and financial condition.
- The corporation is subject to risks associated with energy markets.
- The corporation is subject to risks and uncertainties related to the timing and recovery of deferred tax assets which could have a negative impact on the corporation's net income in future periods.
- The corporation relies on its information systems to conduct its business, and failure to protect these systems against security breaches or cyber-attacks could adversely affect its business and results of operations. Additionally, if these systems fail or become unavailable for any significant period of time, the corporation's business could be harmed.
- The corporation may experience fluctuations in revenues and expenses related to its electric operations, which may cause its financial results to fluctuate and could impair its ability to make distributions to its shareholders or scheduled payments on its debt obligations, or to meet covenants under its borrowing agreements.
- Actions by the regulators of the corporation's electric operations could result in rate reductions, lower revenues and earnings or delays in recovering capital expenditures.
- Otter Tail Power Company's electric generating facilities are subject to operational risks that could result in unscheduled plant outages, unanticipated operation and maintenance expenses and increased power purchase costs.
- Changes to regulation of generating plant emissions, including but not limited to carbon dioxide (CO2) emissions, could affect Otter Tail Power Company's operating costs and the costs of supplying electricity to its customers.
- Competition from foreign and domestic manufacturers, the price and availability of raw materials and general economic conditions could affect the revenues and earnings of our manufacturing businesses.
- The corporation's Plastics segment is highly dependent on a limited number of vendors for PVC resin, many of which are located in the Gulf Coast regions, and a limited supply of resin. The loss of a key vendor, or an interruption or delay in the supply of PVC resin, could result in reduced sales or increased costs for this segment.
- The corporation's plastic pipe companies compete against a large number of other manufacturers of PVC pipe and manufacturers of alternative products. Customers may not distinguish the pipe companies' products from those of its competitors.
- Reductions in PVC resin prices can negatively impact PVC pipe prices, profit margins on PVC pipe sales and the value of PVC pipe held in inventory.
- A significant failure or an inability to properly bid or perform on projects or contracts by the corporation's construction businesses could lead to adverse financial results and could lead to the possibility of delay or liquidated damages.
- The corporation's construction subsidiaries enter into contracts which could expose them to unforeseen costs and costs not within their control, which may not be recoverable and could adversely affect the corporation's results of operations and financial condition.
For a further discussion of other risk factors and cautionary statements, refer to reports the corporation files with the Securities and Exchange Commission.
About The Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing and infrastructure businesses consisting of its Manufacturing, Plastics and Construction segments. 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 located in Fergus Falls, Minnesota, and Fargo, North Dakota.
See Otter Tail Corporation's results of operations for the three months ended March 31, 2014 and 2013 in the following financial statements: Consolidated Statements of Income, Consolidated Balance Sheets – Assets, Consolidated Balance Sheets – Liabilities and Equity, and Consolidated Statements of Cash Flows. For a further discussion of other risk factors and cautionary statements, refer to reports the corporation files with the Securities and Exchange Commission.
|Otter Tail Corporation|
|Consolidated Statements of Income|
|In thousands, except share and per share amounts|
| Quarter Ended |
|Operating Revenues by Segment|
|Electric||$ 119,088||$ 101,010|
|Corporate Revenue and Intersegment Eliminations||(40)||(47)|
|Total Operating Revenues||240,472||217,954|
|Fuel and Purchased Power||43,815||34,592|
|Nonelectric Cost of Goods Sold (depreciation included below)||96,301||92,062|
|Electric Operating and Maintenance Expense||37,593||35,363|
|Nonelectric Operating and Maintenance Expense||13,561||13,778|
|Depreciation and Amortization||14,780||14,920|
|Total Operating Expenses||206,050||190,715|
|Operating Income (Loss) by Segment|
|Total Operating Income||34,422||27,239|
|Income Tax Expense – Continuing Operations||8,288||5,886|
|Net Income (Loss) by Segment – Continuing Operations|
|Net Income from Continuing Operations||21,362||15,234|
|Income (Loss) - net of Income Tax Expense (Benefit) of $49 in 2014 and ($205) in 2013||68||(81)|
|Gain on Disposition - net of Income Tax Expense of $6 in 2013||--||210|
|Net Income from Discontinued Operations||68||129|
|Preferred Dividend Requirement and Other Adjustments||--||513|
|Balance for Common||$ 21,430||$ 14,850|
|Average Number of Common Shares Outstanding|
|Basic Earnings Per Common Share:|
|Continuing Operations (net of preferred dividend requirement and other adjustments)||$ 0.59||$ 0.41|
|$ 0.59||$ 0.41|
|Diluted Earnings Per Common Share:|
|Continuing Operations (net of preferred dividend requirement and other adjustments)||$ 0.59||$ 0.41|
|$ 0.59||$ 0.41|
|Otter Tail Corporation|
|Consolidated Balance Sheets|
|March 31,||December 31,|
|Cash and Cash Equivalents||$ 6,613||$ 1,150|
|Deferred Income Taxes||39,352||35,452|
|Costs and Estimated Earnings in Excess of Billings||3,719||4,063|
|Assets of Discontinued Operations||38||38|
|Total Current Assets||291,449||250,590|
|Unamortized Debt Expense||4,498||4,188|
|Total Deferred Debits||83,337||87,918|
|Electric Plant in Service||1,473,685||1,460,884|
|Construction Work in Progress||207,442||187,461|
|Total Gross Plant||1,877,627||1,843,217|
|Less Accumulated Depreciation and Amortization||686,460||676,201|
|Otter Tail Corporation|
|Consolidated Balance Sheets|
|LIABILITIES AND EQUITY|
|March 31,||December 31,|
|Short-Term Debt||$ 11,899||$ 51,195|
|Current Maturities of Long-Term Debt||191||188|
|Accrued Salaries and Wages||13,556||19,903|
|Billings In Excess Of Costs and Estimated Earnings||10,077||13,707|
|Other Accrued Liabilities||8,272||6,532|
|Liabilities of Discontinued Operations||3,442||3,637|
|Total Current Liabilities||174,232||232,892|
|Pensions Benefit Liability||50,129||69,743|
|Other Postretirement Benefits Liability||45,547||45,221|
|Other Noncurrent Liabilities||21,367||25,209|
|Deferred Income Taxes||212,682||195,603|
|Deferred Tax Credits||27,834||28,288|
|Total Deferred Credits||316,614||298,535|
|Long-Term Debt, Net of Current Maturities||498,640||389,589|
|Cumulative Preferred Shares||--||--|
|Cumulative Preference Shares||--||--|
|Common Shares, Par Value $5 Per Share||182,062||181,358|
|Premium on Common Shares||259,454||255,759|
|Accumulated Other Comprehensive Loss||(1,720)||(1,728)|
|Total Common Equity||549,674||534,830|
|Total||$ 1,656,203||$ 1,596,019|
|Otter Tail Corporation|
|Consolidated Statements of Cash Flows|
| For the Three Months Ended |
|Cash Flows from Operating Activities|
|Net Income||$ 21,430||$ 15,363|
|Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities:|
|Net Gain from Sale of Discontinued Operations||--||(210)|
|Net (Income) Loss from Discontinued Operations||(68)||81|
|Depreciation and Amortization||14,780||14,920|
|Deferred Tax Credits||(454)||(483)|
|Deferred Income Taxes||12,872||6,139|
|Change in Deferred Debits and Other Assets||(888)||4,800|
|Discretionary Contribution to Pension Plan||(20,000)||(10,000)|
|Change in Noncurrent Liabilities and Deferred Credits||(2,408)||1,975|
|Allowance for Equity/Other Funds Used During Construction||(340)||(293)|
|Change in Derivatives Net of Regulatory Deferral||118||378|
|Stock Compensation Expense – Equity Awards||358||392|
|Cash (Used for) Provided by Current Assets and Current Liabilities:|
|Change in Receivables||(17,884)||(13,423)|
|Change in Inventories||(9,234)||(4,062)|
|Change in Other Current Assets||(1,599)||(3,025)|
|Change in Payables and Other Current Liabilities||(16,363)||(3,440)|
|Change in Interest and Income Taxes Receivable/Payable||1,013||1,076|
|Net Cash (Used in) Provided by Continuing Operations||(18,922)||10,213|
|Net Cash Used in Discontinued Operations||(135)||(2,400)|
|Net Cash (Used in) Provided by Operating Activities||(19,057)||7,813|
|Cash Flows from Investing Activities|
|Proceeds from Disposal of Noncurrent Assets||1,505||729|
|Net Increase in Other Investments||(989)||(923)|
|Net Cash Used in Investing Activities - Continuing Operations||(37,174)||(23,521)|
|Net Proceeds from Sale of Discontinued Operations||--||10,465|
|Net Cash Provided by (Used in) Investing Activities - Discontinued Operations||7||(208)|
|Net Cash Used in Investing Activities||(37,167)||(13,264)|
|Cash Flows from Financing Activities|
|Net Short-Term (Repayments) Borrowings||(39,296)||1,335|
|Proceeds from Issuance of Common Stock||3,666||1,156|
|Payments for Retirement of Capital Stock||(242)||(15,500)|
|Proceeds from Issuance of Long-Term Debt||150,000||40,900|
|Short-Term and Long-Term Debt Issuance Expenses||(502)||(7)|
|Payments for Retirement of Long-Term Debt||(40,946)||(25,178)|
|Dividends Paid and Other Distributions||(10,993)||(11,307)|
|Net Cash Provided by (Used in) Financing Activities||61,687||(8,601)|
|Net Change in Cash and Cash Equivalents – Discontinued Operations||--||(778)|
|Net Change in Cash and Cash Equivalents||5,463||(14,830)|
|Cash and Cash Equivalents at Beginning of Period||1,150||52,362|
|Cash and Cash Equivalents at End of Period||$ 6,613||$ 37,532|
CONTACT: Media contact: Cris Oehler, Vice President of Corporate Communications (218) 531-0099 or (866) 410-8780 Investor contact: Loren Hanson, Manager of Investor Relations (218) 739-8481 or (800) 664-1259
Source:Otter Tail Corporation