Otter Tail Corporation Reports 5 Percent First Quarter Earnings Increase
Apr 23, 2001, 01:00 ET from Otter Tail Corporation
FERGUS FALLS, Minn., April 23 /PRNewswire Interactive News Release/ --
Otter Tail Corporation (Nasdaq: OTTR) announced first quarter diluted
earnings per share of 45 cents for the quarter ended March 31, 2001, a
5 percent increase over the 43 cents per share for the first quarter ended
March 31, 2000. Total revenues were $155.5 million, up from $140.3 million,
and net income increased to $11.5 million from $10.9 million in the comparable
period a year ago. The consolidated financial statements for prior periods
have been restated to include the results of T.O. Plastics, Inc., acquired in
February 2001, as the acquisition was recorded under the pooling-of-interests
method of accounting.
"Overall, we are pleased with the results for the first quarter," said
John MacFarlane, chief executive officer of Otter Tail Corporation.
"Outstanding results from the electric segment combined with growth in the
manufacturing and health services segments helped to offset losses in the
plastics and other business operations segments. Our diversification strategy
continues to allow us to achieve continued revenue and earnings growth."
Net income for the electric segment increased 55 percent to $11.6 million
for the quarter ended March 31, 2001, compared with $7.4 million for the
quarter ended March 31, 2000. This increase comes from a $5.5 million
increase in retail revenues and a $1.7 million increase in gross margins on
wholesale power sales. Retail revenues increased due to an 8 percent increase
in retail kilowatt-hour sales as a result of a 15 percent increase in heating
degree days between the periods. Wholesale power sales gross margins
increased primarily as a result of increases in wholesale kilowatt-hour sales.
This year's colder weather along with higher fossil-fuel prices helped to
drive both retail and wholesale power kilowatt-hour sales.
The plastics segment had a net loss of $933,000 for the quarter ended
March 31, 2001, compared with net income of $2.6 million for the quarter ended
March 31, 2000. This decrease is due to a 24 percent reduction in pounds of
PVC pipe sold and a 30 percent decrease in average sales price per pound
between the quarters. As initially reported in the last half of 2000, demand
for these products has softened and gross margins have dropped. These trends
have continued through the quarter ended March 31, 2001. The slowdown in the
general economy, particularly in the construction industry, has continued to
have an adverse impact on this segment's performance.
Net income for the manufacturing segment increased 23 percent to $972,000
for the quarter ended March 31, 2001, compared with $793,000 for the quarter
ended March 31, 2000. This increase primarily was due to more favorable
results from Otter Tail Corporation's subsidiary that produces wind towers.
Net income for the health services segment was $981,000 for the quarter
ended March 31, 2001, compared with $505,000 for the quarter ended March 31,
2000. This increase is due to a 6 percent increase in the number of medical
imaging scans completed, combined with an increase in revenues for equipment
sales, service and supplies.
Net income for the other business operations segment declined $717,000,
primarily because the cold weather and the slowed economy adversely impacted
work for the construction companies. The economy also affected freight
volumes for the transportation company. In addition, higher diesel fuel costs
affected the results.
Otter Tail Corporation is headquartered in Fergus Falls, Minn., and Fargo,
N.D. Its utility operation, Otter Tail Power Company, provides electricity
and energy services to nearly a quarter million people in Minnesota, North
Dakota, and South Dakota. Varistar Corporation manages investments in
manufacturing, plastics, health services, construction, entertainment,
telecommunications, and transportation businesses with customers across the
United States and Canada. To learn more visit Otter Tail Corporation's web
site at http://www.ottertail.com . Otter Tail's common stock trades on The
Nasdaq Stock Market(R) under the symbol OTTR.
Forward-looking statements in this news release, if any, are made under
the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995. Certain important factors could cause results to differ materially from
those anticipated by any forward-looking statements. These factors include
governmental and regulatory action, the competitive environment, economic
considerations, weather conditions, and other factors discussed from time to
time in reports the company files with the Securities and Exchange Commission.
See Otter Tail Corporation's results for the quarter ended March 31, 2001,
below.
Consolidated Statements of Income
For the three months ended March 31, 2001 and 2000
In thousands, except share and per share amounts
Unaudited
Year to date
2001 2000
Operating revenues by segment: (Restated)
Electric $82,631 $61,302
Plastics 13,961 26,363
Manufacturing 24,120 19,530
Health services 17,900 16,645
Other business operations 16,897 16,505
Total operating revenues 155,509 140,345
Operating expenses:
Fuel and purchase power 37,895 22,342
Nonelectric cost of goods sold 53,802 53,659
Electric operating and maintenance expense 18,745 19,894
Nonelectric operating and maintenance expense 13,830 14,163
Depreciation and amortization 9,698 9,516
Total operating expenses 133,970 119,574
Operating income (loss) by segment:
Electric 20,372 13,543
Plastics (1,162) 4,750
Manufacturing 2,125 1,674
Health services 1,754 1,048
Other business operations (1,550) (244)
Total operating income 21,539 20,771
Interest charges 4,085 4,081
Other income and deductions--net 318 684
Income taxes 6,301 6,435
Net income (loss) by segment:
Electric 11,558 7,443
Plastics (933) 2,588
Manufacturing 972 793
Health services 981 505
Other business operations (1,107) (390)
Total net income 11,471 10,939
Preferred stock dividend 469 469
Balance for common: $11,002 $10,470
Average common shares outstanding
Basic 24,306,438 24,301,040
Diluted 24,505,664 24,304,450
Earnings per share:
Basic $0.45 $0.43
Diluted $0.45 $0.43
On February 28, 2001, Otter Tail Corporation acquired T.O. Plastics, Inc.
in a pooling-of-interests transaction. Otter Tail Corporation's 2000
results have been restated to reflect this transaction.
Consolidated Balance Sheets
Assets
In thousands
March 31, December 31,
2001 2000
(Unaudited) (Restated)
Current assets:
Cash and cash equivalents $9,173 $1,259
Accounts receivable:
Trade - net 71,643 58,800
Other 6,013 6,037
Inventory, fuel, materials, and supplies 45,740 41,815
Deferred income taxes 3,679 3,695
Accrued utility revenues 9,402 11,315
Other 7,157 6,703
Total current assets 152,807 129,624
Investments 19,429 19,073
Intangibles--net 42,724 43,532
Other assets 11,594 10,126
Deferred debits:
Unamortized debt expense and reacquisition
premiums 2,661 2,778
Regulatory assets 5,412 5,517
Other 1,381 1,183
Total deferred debits 9,454 9,478
Plant:
Electric plant in service 796,721 795,357
Diversified operations 128,931 127,219
Total 925,652 922,576
Less accumulated depreciation and amortization 421,113 414,892
504,539 507,684
Construction work in progress 16,363 13,117
Net plant 520,902 520,801
Total $756,910 $732,634
On February 28, 2001, Otter Tail Corporation acquired T.O. Plastics, Inc.
in a pooling-of-interests transaction. Otter Tail Corporation's 2000
results have been restated to reflect this transaction.
Consolidated Balance Sheets
Liabilities and Equity
In thousands
March 31, December 31,
2001 2000
(Unaudited) (Restated)
Current liabilities
Short-term debt $20,680 $--
Sinking fund requirements and current maturities 10,848 13,576
Accounts payable 53,213 51,620
Accrued salaries and wages 4,727 9,476
Federal and state income taxes accrued 7,369 3,243
Other taxes accrued 11,334 10,585
Other accrued liabilities 5,850 6,524
Total current liabilities 114,021 95,024
Noncurrent liabilities 30,801 30,181
Deferred credits
Accumulated deferred income taxes 86,199 86,327
Accumulated deferred investment tax credit 14,824 15,112
Regulatory liabilities 10,532 10,618
Other 8,544 6,850
Total deferred credits 120,099 118,907
Capitalization
Common shares, par value $5 per share 121,544 121,520
Premium on common shares 27 49
Unearned compensation (151) (226)
Retained earnings 143,908 139,276
Accumulated other comprehensive income (220) (220)
Total 265,108 260,399
Cumulative preferred shares
Subject to mandatory redemption 18,000 18,000
Other 15,500 15,500
Cumulative preference shares - authorized
1,000,000 shares without par value;
outstanding - none -- --
Long-term debt 193,381 194,623
Total capitalization 491,989 488,522
Total $756,910 $732,634
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X22534842
SOURCE Otter Tail Corporation
FERGUS FALLS, Minn., April 23 /PRNewswire Interactive News Release/ --
Otter Tail Corporation (Nasdaq: OTTR) announced first quarter diluted
earnings per share of 45 cents for the quarter ended March 31, 2001, a
5 percent increase over the 43 cents per share for the first quarter ended
March 31, 2000. Total revenues were $155.5 million, up from $140.3 million,
and net income increased to $11.5 million from $10.9 million in the comparable
period a year ago. The consolidated financial statements for prior periods
have been restated to include the results of T.O. Plastics, Inc., acquired in
February 2001, as the acquisition was recorded under the pooling-of-interests
method of accounting.
"Overall, we are pleased with the results for the first quarter," said
John MacFarlane, chief executive officer of Otter Tail Corporation.
"Outstanding results from the electric segment combined with growth in the
manufacturing and health services segments helped to offset losses in the
plastics and other business operations segments. Our diversification strategy
continues to allow us to achieve continued revenue and earnings growth."
Net income for the electric segment increased 55 percent to $11.6 million
for the quarter ended March 31, 2001, compared with $7.4 million for the
quarter ended March 31, 2000. This increase comes from a $5.5 million
increase in retail revenues and a $1.7 million increase in gross margins on
wholesale power sales. Retail revenues increased due to an 8 percent increase
in retail kilowatt-hour sales as a result of a 15 percent increase in heating
degree days between the periods. Wholesale power sales gross margins
increased primarily as a result of increases in wholesale kilowatt-hour sales.
This year's colder weather along with higher fossil-fuel prices helped to
drive both retail and wholesale power kilowatt-hour sales.
The plastics segment had a net loss of $933,000 for the quarter ended
March 31, 2001, compared with net income of $2.6 million for the quarter ended
March 31, 2000. This decrease is due to a 24 percent reduction in pounds of
PVC pipe sold and a 30 percent decrease in average sales price per pound
between the quarters. As initially reported in the last half of 2000, demand
for these products has softened and gross margins have dropped. These trends
have continued through the quarter ended March 31, 2001. The slowdown in the
general economy, particularly in the construction industry, has continued to
have an adverse impact on this segment's performance.
Net income for the manufacturing segment increased 23 percent to $972,000
for the quarter ended March 31, 2001, compared with $793,000 for the quarter
ended March 31, 2000. This increase primarily was due to more favorable
results from Otter Tail Corporation's subsidiary that produces wind towers.
Net income for the health services segment was $981,000 for the quarter
ended March 31, 2001, compared with $505,000 for the quarter ended March 31,
2000. This increase is due to a 6 percent increase in the number of medical
imaging scans completed, combined with an increase in revenues for equipment
sales, service and supplies.
Net income for the other business operations segment declined $717,000,
primarily because the cold weather and the slowed economy adversely impacted
work for the construction companies. The economy also affected freight
volumes for the transportation company. In addition, higher diesel fuel costs
affected the results.
Otter Tail Corporation is headquartered in Fergus Falls, Minn., and Fargo,
N.D. Its utility operation, Otter Tail Power Company, provides electricity
and energy services to nearly a quarter million people in Minnesota, North
Dakota, and South Dakota. Varistar Corporation manages investments in
manufacturing, plastics, health services, construction, entertainment,
telecommunications, and transportation businesses with customers across the
United States and Canada. To learn more visit Otter Tail Corporation's web
site at http://www.ottertail.com . Otter Tail's common stock trades on The
Nasdaq Stock Market(R) under the symbol OTTR.
Forward-looking statements in this news release, if any, are made under
the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995. Certain important factors could cause results to differ materially from
those anticipated by any forward-looking statements. These factors include
governmental and regulatory action, the competitive environment, economic
considerations, weather conditions, and other factors discussed from time to
time in reports the company files with the Securities and Exchange Commission.
See Otter Tail Corporation's results for the quarter ended March 31, 2001,
below.
Consolidated Statements of Income
For the three months ended March 31, 2001 and 2000
In thousands, except share and per share amounts
Unaudited
Year to date
2001 2000
Operating revenues by segment: (Restated)
Electric $82,631 $61,302
Plastics 13,961 26,363
Manufacturing 24,120 19,530
Health services 17,900 16,645
Other business operations 16,897 16,505
Total operating revenues 155,509 140,345
Operating expenses:
Fuel and purchase power 37,895 22,342
Nonelectric cost of goods sold 53,802 53,659
Electric operating and maintenance expense 18,745 19,894
Nonelectric operating and maintenance expense 13,830 14,163
Depreciation and amortization 9,698 9,516
Total operating expenses 133,970 119,574
Operating income (loss) by segment:
Electric 20,372 13,543
Plastics (1,162) 4,750
Manufacturing 2,125 1,674
Health services 1,754 1,048
Other business operations (1,550) (244)
Total operating income 21,539 20,771
Interest charges 4,085 4,081
Other income and deductions--net 318 684
Income taxes 6,301 6,435
Net income (loss) by segment:
Electric 11,558 7,443
Plastics (933) 2,588
Manufacturing 972 793
Health services 981 505
Other business operations (1,107) (390)
Total net income 11,471 10,939
Preferred stock dividend 469 469
Balance for common: $11,002 $10,470
Average common shares outstanding
Basic 24,306,438 24,301,040
Diluted 24,505,664 24,304,450
Earnings per share:
Basic $0.45 $0.43
Diluted $0.45 $0.43
On February 28, 2001, Otter Tail Corporation acquired T.O. Plastics, Inc.
in a pooling-of-interests transaction. Otter Tail Corporation's 2000
results have been restated to reflect this transaction.
Consolidated Balance Sheets
Assets
In thousands
March 31, December 31,
2001 2000
(Unaudited) (Restated)
Current assets:
Cash and cash equivalents $9,173 $1,259
Accounts receivable:
Trade - net 71,643 58,800
Other 6,013 6,037
Inventory, fuel, materials, and supplies 45,740 41,815
Deferred income taxes 3,679 3,695
Accrued utility revenues 9,402 11,315
Other 7,157 6,703
Total current assets 152,807 129,624
Investments 19,429 19,073
Intangibles--net 42,724 43,532
Other assets 11,594 10,126
Deferred debits:
Unamortized debt expense and reacquisition
premiums 2,661 2,778
Regulatory assets 5,412 5,517
Other 1,381 1,183
Total deferred debits 9,454 9,478
Plant:
Electric plant in service 796,721 795,357
Diversified operations 128,931 127,219
Total 925,652 922,576
Less accumulated depreciation and amortization 421,113 414,892
504,539 507,684
Construction work in progress 16,363 13,117
Net plant 520,902 520,801
Total $756,910 $732,634
On February 28, 2001, Otter Tail Corporation acquired T.O. Plastics, Inc.
in a pooling-of-interests transaction. Otter Tail Corporation's 2000
results have been restated to reflect this transaction.
Consolidated Balance Sheets
Liabilities and Equity
In thousands
March 31, December 31,
2001 2000
(Unaudited) (Restated)
Current liabilities
Short-term debt $20,680 $--
Sinking fund requirements and current maturities 10,848 13,576
Accounts payable 53,213 51,620
Accrued salaries and wages 4,727 9,476
Federal and state income taxes accrued 7,369 3,243
Other taxes accrued 11,334 10,585
Other accrued liabilities 5,850 6,524
Total current liabilities 114,021 95,024
Noncurrent liabilities 30,801 30,181
Deferred credits
Accumulated deferred income taxes 86,199 86,327
Accumulated deferred investment tax credit 14,824 15,112
Regulatory liabilities 10,532 10,618
Other 8,544 6,850
Total deferred credits 120,099 118,907
Capitalization
Common shares, par value $5 per share 121,544 121,520
Premium on common shares 27 49
Unearned compensation (151) (226)
Retained earnings 143,908 139,276
Accumulated other comprehensive income (220) (220)
Total 265,108 260,399
Cumulative preferred shares
Subject to mandatory redemption 18,000 18,000
Other 15,500 15,500
Cumulative preference shares - authorized
1,000,000 shares without par value;
outstanding - none -- --
Long-term debt 193,381 194,623
Total capitalization 491,989 488,522
Total $756,910 $732,634
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X22534842
SOURCE Otter Tail Corporation
Share this article