ALLETE, Inc. (NYSE: ALE) today reported 2021 earnings of $3.23
per share on net income of $169.2 million and operating revenue of
$1.4 billion. Reported results from 2020 were $3.35 per share on
net income of $174.2 million and operating revenue of $1.2
billion.
Earnings in 2021 reflect an approximately 16 cent gain recorded
in the fourth quarter of 2021 for the sale of a portion of the
Nemadji Trail Energy Center by South Shore Energy, ALLETE’s
non-rate regulated, Wisconsin subsidiary. This positive impact was
partially offset by a 10 cent per share, negative impact related to
ALLETE Clean Energy’s Diamond Spring wind energy facility due to
the February extreme winter storm event. Additionally, net income
in 2021 included a 7 cent per share charge resulting from the
Minnesota Public Utilities Commission’s decision to order refunds
in Minnesota Power’s fuel adjustment clause filing covering the
period July 2018 through December 2019.
“I am pleased with the Company’s 2021 financial results and
strategic clean energy positioning as we launch 2022 from a
position of strength,” said ALLETE Chair, President and CEO Bethany
Owen, “ALLETE’s Sustainability in Action strategy will continue to
capitalize on demand for clean energy, providing value to our
customers, our communities and our investors, as well as
opportunities for our employees.”
ALLETE’s Regulated Operations segment, which includes Minnesota
Power, Superior Water, Light and Power and the Company’s investment
in the American Transmission Co., recorded net income of $129.1
million, compared to $136.3 million in 2020. Earnings reflect lower
net income at Minnesota Power primarily due to: lower margins from
the expiration of a power sales contract in 2020; higher operating
and maintenance, property tax and depreciation expenses; and the
reserve for refunds in Minnesota Power’s fuel adjustment clause
filing. These negative impacts were partially offset by increased
earnings related to the Great Northern Transmission Line; and
higher kilowatt-hour sales to retail and municipal customers. Net
income in 2020 also included the rate case resolution impact of
$8.3 million after-tax.
ALLETE Clean Energy recorded 2021 net income of $26.3 million
compared to $29.9 million in 2020. Net income in 2021 included the
impact related to ALLETE Clean Energy’s Diamond Spring wind energy
facility due to an extreme winter storm event in the southwest
United States in February 2021 as well as lower wind resources at
other wind energy facilities. These negative impacts were partially
offset by expense management efforts.
Corporate and Other businesses, which include BNI Energy and
ALLETE Properties, recorded net income of $13.8 million in 2021
compared to net income of $8 million in 2020. Net income in 2021
included South Shore Energy’s sale of a portion of its interest in
NTEC to Basin Electric Cooperative which resulted in the
recognition of an approximately $8.5 million after-tax gain related
to prior development costs and risks incurred, higher earnings from
our investment in Nobles 2 which commenced operations in December
2020 and higher net income from land sales at ALLETE Properties.
These increases were partially offset by higher expenses.
“I am pleased with our financial performance and accomplishments
in 2021, wrapping up the year with a strong fourth quarter; our
businesses are well positioned as we move into 2022 and beyond,”
said ALLETE Senior Vice President and Chief Financial Officer Steve
Morris, “We believe our unique mix of businesses will continue to
deliver a strong value proposition to shareholders for years to
come.”
Details of the Company’s 2022 earnings guidance were filed as
part of today’s Form 8-K filing.
Live Webcast on February 16, 2022; financial slides posted on
company website
ALLETE’s earnings conference call will be at 10:00 a.m. (EST),
February 16, 2022, at which time management will discuss 2021
financial results and 2022 earnings guidance. To participate in the
call, analysts are asked to dial 877-303-5852, pass code 1993529,
ten minutes prior to the start time and refer to the “ALLETE’s
Conference Call Announcing 2021 Financial Results.” All interested
parties may listen to the live audio-only webcast accompanied by
financial slides, which will be available on ALLETE’s Investor
Relations website http://investor.allete.com/events-presentations. A
replay of the call will be available through February 23, 2022 by
calling (855) 859-2056, pass code 1993529. The webcast will be
accessible for one year at www.allete.com.
ALLETE is an energy company headquartered in Duluth, Minn. In
addition to its electric utilities, Minnesota Power and Superior
Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean
Energy, based in Duluth, BNI Energy in Bismarck, N.D., and has an
eight percent equity interest in the American Transmission Co. More
information about ALLETE is available at www.allete.com.
ALE-CORP
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
ALLETE's press releases and other communications may include
certain non-Generally Accepted Accounting Principles (GAAP)
financial measures. A "non-GAAP financial measure" is defined as a
numerical measure of a company's financial performance, financial
position or cash flows that excludes (or includes) amounts that are
included in (or excluded from) the most directly comparable measure
calculated and presented in accordance with GAAP in the company's
financial statements.
Non-GAAP financial measures utilized by the Company include
presentations of earnings (loss) per share. ALLETE's management
believes that these non-GAAP financial measures provide useful
information to investors by removing the effect of variances in
GAAP reported results of operations that are not indicative of
changes in the fundamental earnings power of the Company's
operations. Management believes that the presentation of the
non-GAAP financial measures is appropriate and enables investors
and analysts to more accurately compare the company's ongoing
financial performance over the periods presented.
ALLETE, Inc.
Consolidated Statement of
Income
For the Periods Ended December
31, 2021 and 2020
Quarter Ended
Year to Date
2021
2020
2021
2020
Millions Except Per Share
Amounts
Operating Revenue
Contracts with Customers – Utility
$339.7
$266.1
$1,227.9
$987.3
Contracts with Customers – Non-utility
56.5
51.5
179.9
170.5
Other – Non-utility
2.8
2.8
11.4
11.3
Total Operating Revenue
399.0
320.4
1,419.2
1,169.1
Operating Expenses
Fuel, Purchased Power and Gas –
Utility
173.0
106.9
562.4
358.6
Transmission Services – Utility
19.2
17.2
75.3
67.0
Cost of Sales – Non-utility
21.0
18.1
68.8
66.7
Operating and Maintenance
59.1
70.1
259.2
252.0
Depreciation and Amortization
58.3
56.5
231.7
217.8
Taxes Other than Income Taxes
18.4
15.2
70.5
56.1
Total Operating Expenses
349.0
284.0
1,267.9
1,018.2
Operating Income
50.0
36.4
151.3
150.9
Other Income (Expense)
Interest Expense
(17.3
)
(17.7
)
(69.1
)
(65.6
)
Equity Earnings
5.7
5.4
20.0
22.1
Other
2.6
5.6
8.7
14.7
Total Other Expense
(9.0
)
(6.7
)
(40.4
)
(28.8
)
Income Before Non-Controlling Interest
and Income Taxes
41.0
29.7
110.9
122.1
Income Tax Benefit
(7.6
)
(11.7
)
(26.9
)
(39.5
)
Net Income
48.6
41.4
137.8
161.6
Net Loss Attributable to Non-Controlling
Interest
(13.3
)
(5.7
)
(31.4
)
(12.6
)
Net Income Attributable to
ALLETE
$61.9
$47.1
$169.2
$174.2
Average Shares of Common Stock
Basic
52.8
52.0
52.4
51.9
Diluted
52.8
52.1
52.5
51.9
Basic Earnings Per Share of Common
Stock
$1.18
$0.91
$3.23
$3.36
Diluted Earnings Per Share of Common
Stock
$1.18
$0.90
$3.23
$3.35
Dividends Per Share of Common
Stock
$0.63
$0.6175
$2.52
$2.47
Consolidated Balance
Sheet
Millions
Dec. 31,
Dec. 31,
Dec. 31,
Dec. 31,
2021
2020
2021
2020
Assets
Liabilities and Equity
Cash and Cash Equivalents
$45.1
$44.3
Current Liabilities
$543.4
$459.6
Other Current Assets
246.2
210.6
Long-Term Debt
1,763.2
1,593.2
Property, Plant and Equipment – Net
5,100.2
4,840.8
Deferred Income Taxes
185.7
195.7
Regulatory Assets
511.8
480.9
Regulatory Liabilities
536.1
524.8
Equity Investments
318.0
301.2
Defined Benefit Pension & Other
Postretirement Benefit Plans
179.5
225.8
Other Non-Current Assets
213.7
206.8
Other Non-Current Liabilities
280.8
285.3
Equity
2,946.3
2,800.2
Total Assets
$6,435.0
$6,084.6
Total Liabilities and Equity
$6,435.0
$6,084.6
Quarter Ended
Year to Date
ALLETE, Inc.
December 31,
December 31,
Income (Loss)
2021
2020
2021
2020
Millions
Regulated Operations
$29.7
$25.3
$129.1
$136.3
ALLETE Clean Energy
14.6
13.1
26.3
29.9
Corporate and Other
17.6
8.7
13.8
8.0
Net Income Attributable to ALLETE
$61.9
$47.1
$169.2
$174.2
Diluted Earnings Per Share
$1.18
$0.90
$3.23
$3.35
Statistical Data
Corporate
Common Stock
High
$66.71
$62.28
$73.10
$84.71
Low
$56.84
$50.75
$56.84
$48.22
Close
$66.35
$61.94
$66.35
$61.94
Book Value
$45.34
$44.06
$45.34
$44.06
Kilowatt-hours Sold
Millions
Regulated Utility
Retail and Municipal
Residential
289
299
1,135
1,134
Commercial
341
323
1,359
1,306
Industrial
1,845
1,645
7,196
6,192
Municipal
145
150
590
584
Total Retail and Municipal
2,620
2,417
10,280
9,216
Other Power Suppliers
1,407
1,544
5,102
4,039
Total Regulated Utility
4,027
3,961
15,382
13,255
Regulated Utility Revenue
Millions
Regulated Utility Revenue
Retail and Municipal Electric Revenue
Residential
$38.3
$34.6
$145.6
$127.9
Commercial
41.4
34.5
161.0
134.0
Industrial
156.4
115.6
562.1
430.6
Municipal
13.5
10.7
52.0
41.2
Total Retail and Municipal
249.6
195.4
920.7
733.7
Other Power Suppliers
51.8
42.2
168.7
138.8
Other (Includes Water and Gas Revenue)
38.3
28.5
138.5
114.8
Total Regulated Utility Revenue
$339.7
$266.1
$1,227.9
$987.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220216005303/en/
Vince Meyer 218-723-3952 vmeyer@allete.com
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