Narrows 2014 Earnings Guidance Range to $1.65 to $1.80 per Share
Board of Directors Declares Quarterly Dividend
FARGO, N.D., Aug. 4, 2014 (GLOBE NEWSWIRE) -- Otter Tail Corporation (Nasdaq:OTTR) today announced financial results for the quarter ended June 30, 2014.
- Consolidated revenues were $234.6 million compared with $212.4 million for the second quarter of 2013.
- Consolidated net income and diluted earnings from continuing operations totaled $10.0 million and $0.27 per share, respectively, compared with $7.5 million and $0.21 per share for the second quarter of 2013.
- The corporation is narrowing its 2014 earnings guidance range to $1.65 to $1.80 per diluted share from its previously announced range of $1.60 to $1.80, based on its strong performance in the first half of 2014.
"Our strong 2014 first quarter performance has continued in the second quarter," said Otter Tail Corporation CEO Jim McIntyre. "This quarter's consolidated revenues are up more than 10% compared with second quarter last year and consolidated net income from continuing operations is up 33%."
"We continue to see earnings growth from our capital investments at the utility. Regulatory mechanisms in North Dakota, South Dakota, and Minnesota allow for a return on the funds we've invested in five large regional transmission projects and the environmental upgrade at Big Stone Plant. Those earnings were augmented this quarter by increased electricity sales to pipeline and commercial customers.
"We also continue to see positive results from our focus on operational excellence at our manufacturing and infrastructure companies. I'm especially pleased that profitability at both Foley and Aevenia continued to improve this quarter, thanks to better project management aligned with increased construction activity.
"On the strength of our year-to-date results, we are narrowing our overall guidance range for 2014 diluted earnings per share to $1.65 to $1.80 from our previously announced range of $1.60 to $1.80."
Cash Flow from Operations, Liquidity and Financing
The corporation's consolidated cash provided by continuing operations was $4.4 million for the six months ended June 30, 2014 compared with $48.8 million for the six months ended June 30, 2013. Contributing to the $44.4 million decrease between the periods was a $32.0 million increase in cash used for working capital items associated with year over year revenue growth and a $10.0 million increase in discretionary contributions to the corporation's pension plan. The following table presents the status of the corporation's lines of credit as of June 30, 2014:
|(in thousands)|| |
In Use On
June 30, 2014
| Restricted due to |
Letters of Credit
June 30, 2014
|Otter Tail Corporation Credit Agreement||$ 150,000||$ 25,273||$ 309||$ 124,418|
|Otter Tail Power Company Credit Agreement||170,000||2,870||2,330||164,800|
|Total||$ 320,000||$ 28,143||$ 2,639||$ 289,218|
During the quarter ended June 30, 2014 the corporation sold 86,909 shares of common stock and received net proceeds of $2.5 million through its At-the-Market offering program. Our financing plans are subject to change depending on capital expenditures, internal cash generation and general market conditions.
Board of Directors Declared Quarterly Dividend
On August 1, 2014 the corporation's Board of Directors declared a quarterly common stock dividend of $0.3025 per share. This dividend is payable September 10, 2014 to shareholders of record on August 15, 2014.
Segment Performance Summary
Electric revenues and net income were $92.9 million and $5.2 million, respectively, compared with $82.9 million and $3.6 million for the second quarter of 2013.
The following table shows Heating Degree Days as a percent of normal:
|Three Months ended June 30,|
Retail electric revenues increased $11.1 million as a result of:
- a $3.9 million increase in revenue due to a 10.6% increase in retail kilowatt-hour (kwh) sales mainly related to increased sales to pipeline and commercial customers,
- a $3.7 million increase in fuel clause adjustment revenues and fuel and purchased power costs recovered in base rates driven by increased power purchases to meet higher retail kwh sales demand and higher purchased power prices,
- a $3.5 million increase in Environmental Costs Recovery rider revenue related to earning a return in Minnesota and North Dakota on increasing amounts invested in the air quality control system (AQCS) under construction at Big Stone Plant, and
- a $1.5 million increase in Transmission Cost Recovery rider revenues related to recovering costs and returns earned on increasing investments in transmission plant,
- an estimated $0.7 million decrease in revenues related to milder weather in the second quarter of 2014 compared with the second quarter of 2013,
- a $0.4 million reduction in Big Stone II cost recovery rider revenues as the North Dakota share of abandoned plant costs were fully recovered by the end of March 2014, and
- a $0.3 million decrease in accrued conservation improvement program incentives and cost recovery revenues.
Wholesale electric revenues from company-owned generation decreased $1.7 million as a result of a 49% reduction in wholesale kwh sales. The decrease in wholesale kwh sales was related to a 12.4% decrease in kwhs generated by Otter Tail Power Company generating units, mainly as a result of the extended maintenance shutdown of Hoot Lake Plant, which was offline for most of the second quarter of 2014.
Net revenue from energy trading activities, including net mark-to-market losses and gains on forward energy contracts, decreased $0.2 million as a result of decreased trading activity.
Other electric operating revenues increased $0.8 million mainly due to an increase in Midcontinent Independent System Operator, Inc. (MISO) tariff revenues resulting from increased investment in regional transmission lines and returns on and recovery of Capacity Expansion 2020 (CapX2020) and MISO-designated Multi-Value Project (MVP) investment costs and operating expenses.
Production fuel costs decreased $3.0 million as a result of a 14.7% decrease in kwhs generated from Otter Tail Power Company's steam-powered and combustion turbine generators in combination with a 5.3% decrease in the cost of fuel per kwh generated. The decreases in kwh generation and the cost of fuel per kwh generated were mainly due to the extended maintenance shutdown of Hoot Lake Plant in the second quarter of 2014.
The cost of purchased power to serve retail customers increased $5.2 million due to a 42.8% increase in kwhs purchased and a 2.6% increase in the cost per kwh purchased. The increase in kwhs purchased was driven by the need to make up for the reduction in generation from Hoot Lake Plant and increased demand from retail—mainly pipeline—customers.
Electric operating and maintenance expenses increased $4.3 million as a result of:
- a $3.4 million increase in contracted maintenance and material and supply costs at Hoot Lake Plant related to its extended maintenance shutdown in the second quarter of 2014,
- a $1.0 million increase in MISO transmission tariff charges related to increasing investments in regional CapX2020 and MISO-designated MVP transmission projects,
- a $0.6 million increase in costs for wind turbine, transformer, and Coyote Station maintenance,
- a $0.5 million increase in expenditures for vegetation maintenance and control, and
- a $0.4 million increase in property tax expense due to higher property valuations for transmission and distribution property in Minnesota and South Dakota,
- a $1.1 million reduction in labor and benefit expenses mainly due to decreases in pension and retirement health benefit costs resulting from higher discount rates on projected benefit obligations, and
- a $0.4 million decrease in amortization of the North Dakota share of Big Stone II abandoned plant costs in conjunction with final recovery of those costs by the end of March 2014.
Interest expense increased $1.8 million as a result of the February 27, 2014 issuance of Otter Tail Power Company's $60 million aggregate principal amount of 4.68% Series A Senior Unsecured Notes due February 27, 2029 and $90 million aggregate principal amount of its 5.47% Series B Senior Unsecured Notes due February 27, 2044, offset by the February 27, 2014 retirement of its $40.9 million Unsecured Term Loan which bore interest at 1-Month Libor plus 0.875%.
Manufacturing revenues and net income were $53.4 million and $2.3 million, respectively, compared with $49.8 million and $2.0 million for the second quarter of 2013.
- At BTD, revenues increased $6.0 million, mainly as a result of increased sales to manufacturers of energy-related, recreational, and lawn and garden equipment, while cost of products sold increased $5.8 million, due in part to the increase in sales but also due to the incurrence of additional tooling costs to repair and refurbish several dies, resulting in a $0.2 million increase in gross margins. Additionally, BTD's operating expenses decreased $0.3 million, mainly as a result of gains recorded on the sale of fixed assets in the second quarter of 2014. The combination of increased margins and decreased operating expenses resulted in a $0.5 million increase in quarter over quarter net income.
- At T.O. Plastics, revenues decreased $2.4 million and net income decreased $0.2 million, mainly due to discontinuing a product packing process performed for a customer prior to 2014.
Plastics revenues and net income were $48.1 million and $3.4 million, respectively, compared with $44.8 million and $3.9 million for the second quarter of 2013. The $3.3 million increase in revenues is the result of a 6.8% increase in pounds of polyvinyl chloride (PVC) pipe sold combined with a 0.6% increase in the price per pound of pipe sold. States with significant increases in sales were California, Minnesota, North Dakota, Montana, New Mexico, Nevada, and Colorado. Cost of products sold increased by $4.1 million due to the increase in sales volume and a 4.6% increase in the cost per pound of pipe sold related to higher PVC resin costs. The decline in net income between the quarters is due to an increase in PVC resin costs along with a $0.2 million increase in operating expenses. The increased resin costs could not be fully recovered through increased pipe prices due to competitive market conditions.
Construction revenues and net income were $40.2 million and $1.9 million, respectively, compared with $35.0 million and $0 for the second quarter of 2013.
- Foley's revenue and net income increased $2.6 million and $0.6 million, respectively, between the quarters. Foley's improved results are reflective of increased construction activity, 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.
- Aevenia's revenues increased $2.7 million and it recorded net income of $0.9 million compared to a net loss of $0.4 million in the second quarter of 2013. Aevenia's revenue increase is mainly due to increased electric transmission and distribution work in western North Dakota. Aevenia's costs of sales increased by only $0.8 million as a result of the increase in construction activity and its operating expenses were down $0.1 million between the quarters.
Corporate costs, net-of-tax, increased $0.8 million as a result of recording a $1.5 million net-of-tax charge related to the early termination of an airplane lease, as recent divestitures reduced the need for the airplane. The increase in expense related to the lease termination charge was partially offset by a $0.7 million net-of-tax 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 narrowing its consolidated diluted earnings per share guidance for 2014 to be in the range of $1.65 to $1.80 from its previously announced range of $1.60 to $1.80. This 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 2013 earnings per share and 2014 earnings per share guidance ranges are as follows:
|2013||February 2014||May 2014 EPS||Current 2014|
|EPS by||EPS Guidance||Guidance||EPS Guidance|
|Subtotal – Continuing Operations||$1.54||$1.55||$1.75||$1.60||$1.80||$1.65||$1.80|
|Corporate – Loss on Debt Extinguishment||($0.17)|
|Total – Continuing Operations||$1.37||$1.55||$1.75||$1.60||$1.80||$1.65||$1.80|
Contributing to the corporation's updated earnings guidance for 2014 are the following items:
- The corporation is raising its 2014 net income expectations for its Electric segment from its previously issued guidance primarily from 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 narrowing its 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, and
- Backlog for the manufacturing companies of approximately $86 million for 2014 compared with $76 million one year ago.
- The corporation is lowering its previous 2014 net income guidance for its Plastics segment due to an expected continued increase in PVC resin costs which, based on current market conditions, are not expected to be fully recovered through higher sales prices for PVC pipe due to current competitive market conditions.
- The corporation is raising its previous 2014 net income guidance for its Construction segment. Segment net income for 2014 is expected to be higher than previous guidance and 2013 net income 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 $64 million for 2014 compared with $74 million one year ago.
- The corporation is narrowing it previous range for corporate costs for 2014. Corporate costs for 2014 are still expected to be lower than 2013 costs, despite the charge recorded to exit the airplane lease early, as a result of lower interest costs, the 2014 sale of an investment in tax-credit-qualified low income housing rental property and improved performance in the corporation's self-insured health plan.
The corporation reviews its portfolio of companies at least annually to see where additional opportunities exist to improve its risk profile, improve credit metrics and generate additional sources of cash to support the future capital expenditure plans of its Electric segment.
The following table shows the corporation's 2013 capital expenditures, 2014-2018 projected electric utility average rate base and updated 2014-2018 anticipated capital expenditures reflecting additional expenditures in 2018 for a generation facility to replace Hoot Lake Plant, expected reductions in costs for the Big Stone Plant AQCS and an acceleration of expenditures for transmission line construction:
|Transmission||$ 55||$ 55||$ 98||$ 63||$ 63|
|Total Electric Segment||$ 149||$ 162||$ 148||$ 143||$ 104||$ 143|
|Manufacturing and Infrastructure Segments||15||23||19||26||20||24|
|Total Capital Expenditures||$ 164||$ 185||$ 167||$ 169||$ 124||$ 167|
|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, August 5, 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.
- Changes 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 and six months ended June 30, 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 June 30,||Year-to-Date June 30,|
|Operating Revenues by Segment|
|Electric||$ 92,911||$ 82,862||$ 211,999||$ 183,872|
|Corporate Revenue and Intersegment Eliminations||(7)||(21)||(47)||(68)|
|Total Operating Revenues||234,611||212,389||475,083||430,343|
|Fuel and Purchased Power||29,079||26,848||72,894||61,440|
|Nonelectric Cost of Goods Sold (depreciation included below)||114,059||103,937||210,360||195,999|
|Electric Operating and Maintenance Expense||43,161||38,814||80,754||74,177|
|Nonelectric Operating and Maintenance Expense||15,104||12,176||28,665||25,954|
|Depreciation and Amortization||14,969||14,835||29,749||29,755|
|Total Operating Expenses||216,372||196,610||422,422||387,325|
|Operating Income (Loss) by Segment|
|Total Operating Income||18,239||15,779||52,661||43,018|
|Income Tax Expense – Continuing Operations||1,486||2,094||9,774||7,980|
|Net Income (Loss) by Segment – Continuing Operations|
|Net Income from Continuing Operations||9,984||7,504||31,346||22,738|
| Income - net of Income Tax Expense (Benefit) of |
$1, $131, $50 and ($74) for the respective periods
| Gain on Disposition - net of Income Tax Expense of |
$6 for the six months ended June 30, 2013
|Net Income from Discontinued Operations||9||197||77||326|
|Preferred Dividend Requirement and Other Adjustments||--||--||--||513|
|Balance for Common||$ 9,993||$ 7,701||$ 31,423||$ 22,551|
|Average Number of Common Shares Outstanding|
|Basic Earnings Per Common Share:|
|Continuing Operations (net of preferred dividend requirement and other adjustments)||$ 0.27||$ 0.21||$ 0.87||$ 0.61|
|$ 0.27||$ 0.21||$ 0.87||$ 0.62|
|Diluted Earnings Per Common Share:|
|Continuing Operations (net of preferred dividend requirement and other adjustments)||$ 0.27||$ 0.21||$ 0.86||$ 0.61|
|$ 0.27||$ 0.21||$ 0.86||$ 0.62|
|Otter Tail Corporation|
|Consolidated Balance Sheets|
|June 30,||December 31,|
|Cash and Cash Equivalents||$ --||$ 1,150|
|Deferred Income Taxes||43,342||35,452|
|Costs and Estimated Earnings in Excess of Billings||5,505||4,063|
|Assets of Discontinued Operations||10||38|
|Total Current Assets||292,347||250,590|
|Unamortized Debt Expense||4,330||4,188|
|Total Deferred Debits||81,498||87,918|
|Electric Plant in Service||1,507,065||1,460,884|
|Construction Work in Progress||210,960||187,461|
|Total Gross Plant||1,913,327||1,843,217|
|Less Accumulated Depreciation and Amortization||695,276||676,201|
|Total||$ 1,682,474||$ 1,596,019|
|Otter Tail Corporation|
|Consolidated Balance Sheets|
|LIABILITIES AND EQUITY|
|June 30,||December 31,|
|Short-Term Debt||$ 28,143||$ 51,195|
|Current Maturities of Long-Term Debt||194||188|
|Accrued Salaries and Wages||17,436||19,903|
|Billings In Excess Of Costs and Estimated Earnings||4,717||13,707|
|Other Accrued Liabilities||8,695||6,532|
|Liabilities of Discontinued Operations||3,353||3,637|
|Total Current Liabilities||186,292||232,892|
|Pensions Benefit Liability||50,516||69,743|
|Other Postretirement Benefits Liability||45,683||45,221|
|Other Noncurrent Liabilities||22,248||25,209|
|Deferred Income Taxes||218,981||195,603|
|Deferred Tax Credits||27,381||28,288|
|Total Deferred Credits||325,811||298,535|
|Long-Term Debt, Net of Current Maturities||498,591||389,589|
|Cumulative Preferred Shares||--||--|
|Cumulative Preference Shares||--||--|
|Common Shares, Par Value $5 Per Share||183,117||181,358|
|Premium on Common Shares||263,048||255,759|
|Accumulated Other Comprehensive Loss||(1,666)||(1,728)|
|Total Common Equity||553,333||534,830|
|Total||$ 1,682,474||$ 1,596,019|
|Otter Tail Corporation|
|Consolidated Statements of Cash Flows|
| For the Six Months Ended |
|Cash Flows from Operating Activities|
|Net Income||$ 31,423||$ 23,064|
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:|
|Net Gain from Sale of Discontinued Operations||--||(210)|
|Net Income from Discontinued Operations||(77)||(116)|
|Depreciation and Amortization||29,749||29,755|
|Deferred Tax Credits||(907)||(955)|
|Deferred Income Taxes||14,850||9,882|
|Change in Deferred Debits and Other Assets||129||7,519|
|Discretionary Contribution to Pension Plan||(20,000)||(10,000)|
|Change in Noncurrent Liabilities and Deferred Credits||(936)||4,971|
|Allowance for Equity/Other Funds Used During Construction||(759)||(567)|
|Change in Derivatives Net of Regulatory Deferral||95||486|
|Stock Compensation Expense – Equity Awards||736||786|
|Cash (Used for) Provided by Current Assets and Current Liabilities:|
|Change in Receivables||(18,148)||(10,126)|
|Change in Inventories||(10,057)||(4,075)|
|Change in Other Current Assets||(2,673)||(783)|
|Change in Payables and Other Current Liabilities||(20,469)||(1,362)|
|Change in Interest and Income Taxes Receivable/Payable||2,664||(313)|
|Net Cash Provided by Continuing Operations||4,356||48,823|
|Net Cash Used in Discontinued Operations||(185)||(1,971)|
|Net Cash Provided by Operating Activities||4,171||46,852|
|Cash Flows from Investing Activities|
|Proceeds from Disposal of Noncurrent Assets||3,184||1,603|
|Net Increase in Other Investments||(1,639)||(25)|
|Net Cash Used in Investing Activities - Continuing Operations||(79,204)||(49,575)|
|Net Proceeds from Sale of Discontinued Operations||--||12,842|
|Net Cash Provided by Investing Activities - Discontinued Operations||7||193|
|Net Cash Used in Investing Activities||(79,197)||(36,540)|
|Cash Flows from Financing Activities|
|Change in Checks Written in Excess of Cash||2,785||--|
|Net Short-Term (Repayments) Borrowings||(23,051)||1,117|
|Proceeds from Issuance of Common Stock||8,452||1,462|
|Common Stock Issuance Expenses||(310)||--|
|Payments for Retirement of Capital Stock||(459)||(15,723)|
|Proceeds from Issuance of Long-Term Debt||150,000||40,900|
|Short-Term and Long-Term Debt Issuance Expenses||(516)||(52)|
|Payments for Retirement of Long-Term Debt||(40,993)||(25,222)|
|Dividends Paid and Other Distributions||(22,029)||(22,097)|
|Net Cash Provided by (Used in) Financing Activities - Continuing Operations||73,879||(19,615)|
|Net Cash Used in Financing Activities - Discontinued Operations||(11)||--|
|Net Cash Provided by (Used in) Financing Activities||73,868||(19,615)|
|Net Change in Cash and Cash Equivalents – Discontinued Operations||8||(784)|
|Net Change in Cash and Cash Equivalents||(1,150)||(10,087)|
|Cash and Cash Equivalents at Beginning of Period||1,150||52,362|
|Cash and Cash Equivalents at End of Period||$ --||$ 42,275|
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