NorthWestern Reports 2011 Financial Results

Reports improvement in earnings per share of 19.6% over 2010

Increased the quarterly dividend to 37 cents per share

Provides guidance for 2012 of $2.35 - $2.50 per fully diluted share

Feb 16, 2012, 06:00 ET from NorthWestern Corporation

SIOUX FALLS, S.D., Feb. 16, 2012 /PRNewswire/ -- NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) reported financial results for the year ended Dec. 31, 2011.

Consolidated net income was $92.6 million, or $2.53 per fully diluted share, for the year ended Dec. 31, 2011, compared with consolidated net income of $77.4 million, or $2.14 per fully diluted share, for the year ended Dec. 31, 2010.  The improvement in net income was due primarily to lower income tax expenses.

"We produced good results for our shareholders in 2011," said Bob Rowe, President and CEO. "Our gross margin, operating income and net income all improved compared with 2010. Importantly, during 2011 we made continued progress on investments that reflect our focus on maintaining our system reliability and address our generation supply mix and transmission opportunities."

Annual Summary Financial Results

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2011

2010

2011

2010

Total Revenues                                                       

283,209

291,670

1,117,316

1,110,720

Cost of sales                                                         

124,036

140,404

494,559

531,089

Gross Margin                                                         

159,173

151,266

622,757

579,631

Operating Expenses

  Operating, general and administrative                                     

63,906

63,176

267,160

237,047

  Property and other taxes                                               

20,571

19,711

89,122

88,198

  Depreciation                                                         

25,364

23,072

100,926

91,769

    Total Operating Expenses                                             

109,841

105,959

457,208

417,014

Operating Income                                                      

49,332

45,307

165,549

162,617

Interest Expense, net                                                   

(16,122)

(16,413)

(66,859)

(65,826)

Other Income                                                         

1,674

1,424

3,931

6,345

Income Before Income Taxes                                             

34,884

30,318

102,621

103,136

Income Tax Expense                                                   

(768)

(7,730)

(10,065)

(25,760)

Net Income                                                           

$

34,116

$

22,588

$

92,556

$

77,376

Average Common Shares Outstanding                                     

36,271

36,217

36,258

36,190

Basic Earnings per Average Common Share                                 

$

0.94

$

0.63

$

2.55

$

2.14

Diluted Earnings per Average Common Share                                

$

0.93

$

0.63

$

2.53

$

2.14

Dividends Declared per Average Common Share                             

$

0.360

$

0.340

$

1.44

$

1.36

The following table reconciles the primary changes in 2011 results from 2010:

Twelve Months Ended

Pre-tax

Net

EPS

($millions, except EPS)

Income

Income(1)

Diluted

2010 reported

$103.1

$77.4

$2.14

Gross Margin

DGGS interim rates

27.0

16.6

0.45

Electric retail volumes

6.5

4.0

0.11

Expiration of a power sales agreement

6.0

3.7

0.10

Operating Expense recovered in a tracker (margin)

4.5

2.8

0.08

Natural gas retail volumes

3.5

2.2

0.06

Montana electric rate increase

3.7

2.3

0.06

Gas production (margin)

1.5

0.9

0.02

South Dakota wholesale electric

(0.7)

(0.4)

(0.01)

Settlement received during 2010

(1.0)

(0.6)

(0.02)

Montana natural gas rate decrease

(1.0)

(0.6)

(0.02)

Transmission capacity

(2.8)

(1.7)

(0.05)

Montana property tax tracker

(3.6)

(2.2)

(0.06)

OG&A Expense

Abandoned gas transmission project

(0.8)

(0.5)

(0.01)

Gas production (expense)

(0.8)

(0.5)

(0.01)

Bad debt expense

(1.0)

(0.6)

(0.02)

Nonemployee directors deferred compensation

(1.1)

(0.7)

(0.02)

DGGS operating costs

(3.9)

(2.4)

(0.07)

Plant operator costs

(4.0)

(2.5)

(0.07)

Operating Expense recovered in a tracker (expense)

(4.5)

(2.8)

(0.08)

Labor

(5.4)

(3.3)

(0.09)

Insurance settlements and recoveries

(8.8)

(5.4)

(0.15)

Other

Depreciation expense

(9.1)

(5.6)

(0.15)

Other Income

(2.4)

(1.5)

(0.04)

Property and other taxes

(0.9)

(0.6)

(0.02)

Interest Expense

(1.1)

(0.7)

(0.02)

Items related to income tax

Flow-through of state bonus depreciation deduction

5.3

0.15

Prior year permanent return to accrual adjustment

4.2

0.11

Flow-through repairs deduction

3.7

0.10

Recognition of state NOL benefit

2.4

0.07

All other, net

(0.3)

(0.3)

($0.01)

Subtotal

0.39

2011 reported

$102.6

$92.6

$2.53

(1) Income Tax Benefit (Expense) calculation on reconciling items assumes normal effective tax rate of 38.5%.

For more information see www.northwesternenergy.com/documents/investor/Q411.pdf

Significant Drivers

Gross Margin

Consolidated gross margin for 2011 was $622.8 million compared with $579.6 million for 2010.  The increase in gross margin was due primarily to an increase for interim DGGS rates and an increase in electric and natural gas retail volumes due primarily to warmer summer weather, and colder winter/spring weather; offset by a decrease in Montana property taxes included in a tracker and lower transmission capacity revenues due to a combination of hydro conditions and other factors that decreased demand.

Operating, General and Administrative Expenses

Consolidated operating, general and administrative expenses were $267.2 million for the year ended Dec. 31, 2011 as compared with $237.0 million during 2010.  The increase in operating, general and administrative expenses was primarily due to a decrease in insurance settlements and recoveries, increased labor costs, and higher plant operating expenses, due to beginning commercial operations on January 1, 2011 at DGGS and scheduled maintenance at the Colstrip Unit 4 and the Big Stone plants.

Income Tax Expense

Consolidated income tax expense in 2011 was $10.1 million as compared with $25.8 million in 2010.  The effective tax rate in 2011 was 9.8% as compared with 25.0% for the same period of 2010.  The effective tax rate differs from the federal tax rate of 35% primarily due to repairs and state tax bonus depreciation deductions.

The following table summarizes the significant differences from the Federal statutory rate, which result in reduced income tax expense:

Year Ended December 31,

(in millions)

2011

2010

Income Before Income Taxes

$

102.6

$

103.1

Income tax calculated at 35% Federal statutory rate

(35.9)

(36.1)

Permanent or flow through adjustments:

Flow-through repairs deductions

13.4

9.7

Flow-through of state bonus depreciation deduction

7.6

2.3

Recognition of state NOL benefit

2.4

Prior year permanent return to accrual adjustments

3.9

(0.3)

State income tax & other, net

(1.5)

(1.4)

$

25.8

$

10.3

Income tax expense

$

(10.1)

$

(25.8)

While we reflect an income tax provision in our financial statements, we expect our cash payments for income taxes will be minimal through at least 2015, based on our projected taxable income and anticipated use of consolidated NOL carryforwards.

Regulated Operations

In the regulated operations, electric net income improved $9.7 million, due primarily to an increase in gross margins and a reduction in income tax expense, offset in part by an increase in operating, general, and administrative expenses.  Natural gas net income improved $0.4 million, due primarily to an increase in gross margins and a reduction in income tax expense, offset in part by an increase in operating, general, and administrative expenses.  

Fourth Quarter Financial Results

Consolidated net income for the fourth quarter ended Dec. 31, 2011, was $34.1 million, or $.93/share, compared with $22.6 million, or $.63/share for the fourth quarter in 2010.  

The increase was primarily due to an increase in gross margin and a significant decrease in income tax expense, when compared with the prior fourth quarter.  Those increases were partially offset by an increase in depreciation and property tax expenses for the fourth quarter.  

Liquidity and Capital Resources

As of Dec. 31, 2011, cash and cash equivalents were $5.9 million compared with $6.2 million at Dec. 31, 2010.  The Company had $130.1 million available from its revolving credit facility at Dec. 31, 2011, compared with $96.5 million at Dec. 31, 2010.  

To fund our strategic growth opportunities we intend to utilize available cash flow, debt capacity that would allow us to maintain investment grade ratings, and if necessary additional equity financing.  We plan to maintain a 50 - 55% debt to total capital ratio excluding capital leases.

Dividend Declaration

NorthWestern's Board of Directors declared a quarterly common stock dividend of 37 cents per share, payable on Mar. 31, 2012, to common shareholders of record as of Mar. 15, 2012.  

Update on DGGS Outage

DGGS was shut down on January 31, 2012 and is expected to be down for a period of up to several months following the discovery of a problem within the gas turbines on each of the three generation units.  We expect the turbine repair costs to be covered under the manufacturer's warranty; however, we will also have incremental costs for contracts with third parties for replacement regulation service. We estimate our contracted costs will exceed the variable operating costs of DGGS by up to $0.5 million per month while the plant is down.  We will actively manage our contracted service in an effort to reduce these costs as much as possible as DGGS is brought back into service.  We believe these contracted costs for regulation service are recoverable from customers through our normal course of business; however, there can be no assurance that the MPSC and/or Federal Energy Regulatory Commission will allow us full recovery of such costs.

Highlights for 2011

  • Moody's Investors Services upgraded our senior secured debt from A3 to A2 and our senior unsecured bank credit facility from Baa2 to Baa1;
  • Received approval from the Montana Public Service Commission ("MPSC") of an accounting order to defer certain incremental operating and maintenance costs up to $16.9 million for 2011 and 2012 associated with our Distribution System Infrastructure Project;
  • Received approval from the South Dakota Public Utilities Commission to increase our South Dakota natural gas rates resulting in an annualized revenue increase of approximately $1.8 million;
  • Signed an asset purchase agreement and requested MPSC approval to develop a 40 MW wind project in central Montana at an estimated cost of approximately $86 million;
  • Began construction on a 60 MW peaking facility located in Aberdeen, South Dakota, which we expect to achieve commercial operation before the 2013 summer season; and
  • Successfully accessed the capital markets to reduce short-term borrowing costs and extend maturities by;
    • Entering into a commercial paper program to fund short-term liquidity needs of up to $250 million, and
    • Increasing our revolving credit facility from $250 million to $300 million and extending the maturity date to June 30, 2016;

Significant Items Not Contemplated in 2011 Guidance

A reconciliation of items not factored into our 2011 GAAP earnings guidance of $2.30 to $2.40 per fully diluted earnings per share is as follows (net of tax).  The amount calculated below represents a non-GAAP measure that may provide users of this financial information with additional meaningful comparisons between current results and results the Company originally contemplated in 2011 guidance. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the reported operating results or cash flows from operations or any other measure of performance prepared in accordance with GAAP.  In addition, the presentation of these measures may not be comparable to similarly titled measures other companies use.

Q1 2011

Q2 2011

Q3 2011

Q4 2011

2011

Reported EPS

$           0.89

$        0.30

$           0.41

$           0.93

$           2.53

Non-GAAP Adjustments:

Weather

$         (0.07)

$            -

$         (0.01)

$           0.03

$         (0.05)

High hydro/lower transmission revenue

$        0.05

$           0.05

Income tax adjust - benefit from MT NOL

$      (0.07)

$         (0.07)

Settlement on worker compensation claim

$           0.05

$           0.05

Income tax adjust - return to accrual

$         (0.10)

$         (0.10)

$           0.82

$        0.28

$           0.45

$           0.86

$           2.41

2012 Earnings Outlook

NorthWestern expects its earnings for 2012 to be $2.35 - $2.50 per fully diluted share.  

Bridge

2011 Reported GAAP

$      2.53

Non-GAAP Adjustments

Low

High

2011 favorable weather

$         (0.05)

$         (0.05)

2011 unfavorable weather-hydro conditions

$           0.05

$           0.05

2011 tax adjustments

$         (0.17)

$         (0.17)

Q3 2011 settlement on worker compensation claim

$           0.05

$           0.05

2011 adjustments to 2011 GAAP earnings

$         (0.12)

$         (0.12)

2011 Adjusted earnings

$          2.41

$          2.41

Gross Margin increase over 2011

$           0.25

$           0.30

Operating, General & Admin expense increase over 2011

$         (0.18)

$         (0.14)

Depreciation expense increase over 2011

$         (0.04)

$         (0.04)

AFUDC increase (interest and equity) over 2011

$           0.05

$           0.07

Income tax expense increase over 2011

$         (0.14)

$         (0.10)

Subtotal

$         (0.06)

$           0.09

2012 EPS Range

$           2.35

$           2.50

Basic assumptions include the following expectations:

  • A consolidated income tax rate of approximately 18% - 20% of pre-tax income;
  • No scheduled maintenance at Colstrip Unit 4 and Big Stone Plants;
  • No expected increase in insurance reserves or insurance recoveries in 2012;
  • DGGS outage costs fully recovered;
  • Fully diluted average shares outstanding of 37.0 million; and
  • Normal weather in the Company's electric and natural gas service territories for 2012.

Spion Kop Update

On February 14, 2012, the MPSC held a work session on the proposed Spion Kop Wind, LLC wind project and approved the project, but included a condition that would reduce our revenue requirement if the average production failed to meet a minimum threshold for the first three years.  A written order has not yet been issued and we will evaluate our options after we review the MPSC's written order.  

If the MPSC fails to grant approval to the satisfaction of both parties on or before April 1, 2012, then either party may terminate this agreement.  Material construction would not commence until we receive a favorable ruling from the MPSC. Assuming satisfactory approval by April 1, 2012, commercial operation is projected to begin by December 31, 2012.

Company Hosting Investor Conference Call

NorthWestern will host an investor conference call today at 2:00 pm Eastern Time (1:00 p.m. Central Time) to review its financial results for the year ended Dec. 31, 2011.

The conference call will be webcast live on the Internet at http://www.northwesternenergy.com under the "Investor Information" heading.  To listen, please go to the site at least 10 minutes in advance of the call to register.  An archived webcast will be available shortly after the call.

A telephonic replay of the call will be available beginning at 5:00 p.m. ET on Feb. 16, 2012, through March 16, 2012, at 800-475-6701, access code 235153.

Annual Meeting

The Company's Annual Meeting of Stockholders will be held on Wednesday, April 25, 2012, in Butte, Montana.  The record date for the annual meeting is February 27, 2012.  The annual meeting notice, proxy statement, annual report to stockholders and voting instructions will be provided approximately 40 days prior to the meeting date to stockholders as of the record date.

About NorthWestern Energy

NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 668,300 customers in Montana, South Dakota and Nebraska.  More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.

SPECIAL NOTE REGARDING FORWARD—LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under "2012 Earnings Outlook".  Forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will."  These statements are based upon our current expectations and speak only as of the date hereof.  Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to:

  • potential adverse federal, state, or local legislation or regulation or adverse determinations by regulators could have a material effect on our liquidity, results of operations and financial condition;
  • we have capitalized approximately $20.9 million in preliminary survey and investigative costs related to our proposed Mountain States Transmission Intertie transmission project.  If our efforts to complete MSTI are not successful, we may have to write-off all or a portion these costs, which could have a material effect on our results of operations;
  • changes in availability of trade credit, creditworthiness of counterparties, usage, commodity prices, fuel supply costs or availability due to higher demand, shortages, weather conditions, transportation problems or other developments, may reduce revenues or may increase operating costs, each of which could adversely affect our liquidity and results of operations;
  • unscheduled generation outages or forced reductions in output, maintenance or repairs, which may reduce revenues and increase cost of sales or may require additional capital expenditures or other increased operating costs; and
  • adverse changes in general economic and competitive conditions in the U.S. financial markets and in our service territories.

Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. 

We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

NORTHWESTERN CORPORATION

CONSOLIDATED BALANCE SHEETS

(in thousands)

December 31,

2011

December 31,

2010

(unaudited)

ASSETS

Current Assets                                                       

$

290,199

$

303,054

Property, Plant, and Equipment, Net                                       

2,213,267

2,117,977

Goodwill                                                             

355,128

355,128

Regulatory Assets                                                     

308,804

222,341

Other Noncurrent Assets                                               

43,040

39,169

   Total Assets                                                      

$

3,210,438

$

3,037,669

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Maturities of Long-term Debt and Capital Leases                       

$

5,162

$

7,854

Commercial Paper                                                     

166,943

Current Liabilities                                                      

303,858

296,115

Long-term Capital Leases                                               

32,918

34,288

Long-term Debt                                                       

905,049

1,061,780

Noncurrent Regulatory Liabilities                                          

265,987

251,133

Deferred Income Taxes                                                 

282,406

232,709

Other Noncurrent Liabilities                                              

389,012

333,443

   Total Liabilities                                                    

2,351,326

2,217,322

Total Shareholders' Equity                                           

859,112

820,347

Total Liabilities and Shareholders' Equity                               

$

3,210,438

$

3,037,669

NORTHWESTERN CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in million)

Year Ended December 31,

2011

2010

2009

Operating Activities

Net income

$

92.6

$

77.4

$

73.4

Non-cash adjustments to net income

167.1

137.4

137.5

Changes in working capital

1.6

(1.8)

(40.3)

Other noncurrent assets and liabilities

(27.5)

5.9

(53.8)

 Cash Provided by Operating Activities

233.8

218.9

116.8

Cash Used in Investing Activities

(188.5)

(240.7)

(124.4)

Cash Provided by (Used in) Financing Activities 

(45.5)

23.6

(75.4)

Net Increase (Decrease) in Cash and Cash Equivalents

$

(0.3)

$

1.9

$

(1.5)

Cash and Cash Equivalents, beginning of period

$

6.2

$

4.3

$

12.8

Cash and Cash Equivalents, end of period

$

5.9

$

6.2

$

11.3

NORTHWESTERN CORPORATION

YEAR ENDED DECEMBER 31, 2011 AND 2010 SEGMENT RESULTS

(Unaudited)

(in thousands)

December 31, 2011

Electric

Gas

Other

Eliminations

Total

Operating revenues

$

797,562

$

318,335

$

1,419

$

$

1,117,316

Cost of sales

327,126

167,433

494,559

Gross margin

470,436

150,902

1,419

622,757

Operating, general and administrative

183,503

80,431

3,226

267,160

Property and other taxes

66,425

22,686

11

89,122

Depreciation

81,859

19,034

33

100,926

Operating income

138,649

28,751

(1,851)

165,549

Interest expense

(54,394)

(10,432)

(2,033)

(66,859)

Other income

2,563

1,258

110

3,931

Income tax expense

(14,049)

(3,472)

7,456

(10,065)

Net income (loss)

$

72,769

$

16,105

$

3,682

$

$

92,556

December 31, 2010

Electric

Gas

Other

Eliminations

Total

Operating revenues

$

790,701

$

318,735

$

1,284

$

$

1,110,720

Cost of sales

356,325

174,764

531,089

Gross margin

434,376

143,971

1,284

579,631

Operating, general and administrative

169,483

71,088

(3,524)

237,047

Property and other taxes

65,027

23,159

12

88,198

Depreciation

74,227

17,509

33

91,769

Operating income

125,639

32,215

4,763

162,617

Interest expense

(49,576)

(12,608)

(3,642)

(65,826)

Other income

5,954

284

107

6,345

Income tax expense

(18,939)

(4,183)

(2,638)

(25,760)

Net income (loss)

$

63,078

$

15,708

$

(1,410)

$

$

77,376

NORTHWESTERN CORPORATION

REGULATED ELECTRIC SEGMENT

(Unaudited)

Results

2011

2010

Change

% Change

(in millions)

Retail revenue

$

729.7

$

663.3

$

66.4

10.0%

Transmission

44.1

47.0

(2.9)

(6.2)

Wholesale

1.9

45.0

(43.1)

(95.8)

Regulatory Amortization and Other

21.8

35.4

(13.6)

(38.4)

Total Revenues

797.5

790.7

6.8

0.9

Total Cost of Sales

327.1

356.3

(29.2)

(8.2)%

Gross Margin

$

470.4

$

434.4

$

36.0

8.3%

Revenues

Megawatt Hours (MWH)

Avg. Customer Counts

2011

2010

2011

2010

2011

2010

(in thousands)

Retail Electric

Montana

$

250,988

$

223,813

2,394

2,323

272,131

270,536

South Dakota

46,869

44,896

565

555

48,685

48,479

   Residential 

297,857

268,709

2,959

2,878

320,816

319,015

Montana

302,591

274,017

3,197

3,149

61,571

61,003

South Dakota

65,614

63,508

919

920

11,946

11,796

Commercial

368,205

337,525

4,116

4,069

73,517

72,799

Industrial

37,378

32,927

2,833

2,746

72

71

Other

26,298

24,124

170

163

5,875

5,874

Total Retail Electric

$

729,738

$

663,285

10,078

9,856

400,280

397,759

Wholesale Electric

Montana

$

$

40,486

788

N/A

N/A

South Dakota

1,928

4,503

106

220

N/A

N/A

Total Wholesale Electric

$

1,928

$

44,989

106

1,008

Degree Days

2011 as compared with:

Cooling Degree-Days

2011

2010

Historic Average

2010

Historic Average

Montana

328

221

302

48% warmer

9% warmer

South Dakota

862

832

746

4% warmer

16% warmer

Degree Days

2011 as compared with:

Heating Degree-Days

2011

2010

Historic Average

2010

Historic Average

Montana

8,094

8,004

8,041

1% colder

1% colder

South Dakota

8,074

7,727

7,717

4% colder

5% colder

NORTHWESTERN CORPORATION

REGULATED NATURAL GAS SEGMENT

(Unaudited)

Results

2011

2010

Change

% Change

(in millions)

Retail revenue

$

274.8

$

268.0

$

6.8

2.5%

Wholesale and other

43.5

50.7

(7.2)

(14.2)

Total Revenues

318.3

318.7

(0.4)

(0.1)

Total Cost of Sales

167.4

174.8

(7.4)

(4.2)

Gross Margin

$

150.9

$

143.9

$

7.0

4.9%

Revenues

Dekatherms (Dkt)

Customer Counts

2011

2010

2011

2010

2011

2010

(in thousands)

Retail Gas

Montana

$

124,001

$

115,570

13,170

12,635

158,514

157,764

South Dakota

25,633

26,342

2,918

2,787

37,515

37,263

Nebraska

23,855

24,653

2,605

2,624

36,586

36,515

Residential

173,489

166,565

18,693

18,046

232,615

231,542

Montana

63,346

58,142

6,787

6,400

22,176

22,023

South Dakota

18,591

22,175

2,665

3,044

5,915

5,890

Nebraska

16,915

18,537

2,668

2,838

4,586

4,553

Commercial

98,852

98,854

12,120

12,282

32,677

32,466

Industrial

1,464

1,702

162

194

278

285

Other

1,044

871

126

109

147

146

Total Retail Gas

$

274,849

$

267,992

31,101

30,631

265,717

264,439

Degree Days

2011 as compared with:

Heating Degree-Days

2011

2010

Historic Average

2010

Historic Average

Montana

8,094

8,004

8,041

1% colder

1% colder

South Dakota

8,074

7,727

7,717

4% colder

5% colder

Nebraska

6,493

6,412

6,375

1% colder

2% colder

NORTHWESTERN CORPORATION

FOURTH QUARTER SEGMENT RESULTS

(Unaudited)

(in thousands)

Three Months Ended December 31, 2011

December 31, 2011

Electric

Gas

Other

Eliminations

Total

Operating revenues

$

195,538

$

87,364

$

307

$

$

283,209

Cost of sales

80,534

43,502

124,036

Gross margin

115,004

43,862

307

159,173

Operating, general and administrative

43,235

19,781

890

63,906

Property and other taxes

15,488

5,080

3

20,571

Depreciation

20,656

4,701

7

25,364

Operating income

35,625

14,300

(593)

49,332

Interest expense

(13,518)

(2,327)

(277)

(16,122)

Other income (loss)

1,140

507

27

1,674

Income tax expense

5,496

(3,191)

(3,073)

(768)

Net income (loss)

$

28,743

$

9,289

$

(3,916)

$

$

34,116

Three Months Ended December 31, 2010

December 31, 2010

Electric

Gas

Other

Eliminations

Total

Operating revenues

$

198,439

$

92,853

$

378

$

$

291,670

Cost of sales

90,274

50,130

140,404

Gross margin

108,165

42,723

378

151,266

Operating, general and administrative

45,262

18,634

(720)

63,176

Property and other taxes

14,403

5,305

3

19,711

Depreciation

18,664

4,400

8

23,072

Operating income

29,836

14,384

1,807

45,307

Interest expense

(12,267)

(2,891)

(1,255)

(16,413)

Other income (loss)

1,439

(42)

27

1,424

Income tax expense

(1,449)

(3,142)

(3,139)

(7,730)

Net income (loss)

$

17,559

$

8,309

$

(3,280)

$

$

22,588

SOURCE NorthWestern Corporation



RELATED LINKS

http://www.northwesternenergy.com