Apr 25, 2002
ALLETE Reports First Quarter Earnings
ALLETE Reports First Quarter Earnings
ALLETE Reports First Quarter Earnings
Duluth, Minn. -- ALLETE, Inc. (NYSE: ALE) today reported earnings of 44 cents per share for the first quarter of 2002, compared with 46 cents for the first quarter of 2001. Net income for the quarter was $35.2 million on quarterly revenue of $373 million, compared with $32.9 million of net income on revenue of $376.9 million a year ago.
"The quarter included charges related to our exit of non-strategic businesses," said David Gartzke, ALLETE chairman, president and CEO. Excluding these charges, earnings per share were 46 cents on net income of $37.5 million.
"We are pleased that Automotive Services had another strong quarter and is on course to meet its earnings growth target of 30 percent over last year," Gartzke added. "ALLETE remains on track to achieve earnings per share of $2.13 to $2.17 for the year."
Automotive Services showed continued growth with net income for the quarter rising by $6.6 million over 2001. This 36 percent increase was primarily due to high conversion rates, greater efficiencies and a mandated accounting change related to goodwill at ADESA. The number of vehicles financed at AFC increased seven percent, and ADESA Impact sold 37 percent more total loss vehicles compared with the first quarter of 2001.
Net income from Energy Services fell to $9.1 million for the quarter, compared with $12.4 million in the first quarter of 2001. Mild weather contributed to reduced wholesale power marketing and trading sales.
Net income from Investments and Corporate Charges was down $600,000 from last year due in part to lower returns within the company's securities portfolio.
Discontinued Operations included $2.3 million of after-tax exit charges related to the Electric Odyssey retail business and the Great Rigs automotive transport company.
"Our planned sale of Florida Water Services continues to progress," Gartzke said. "The potential buyer, the Florida Governmental Utility Authority, has scheduled a public meeting for May 2, which is required before a definitive purchase agreement can be signed."
ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE's holdings include ADESA, the second largest wholesale vehicle auction network in North America; AFC, the leading provider of independent auto dealer inventory financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States; and significant real estate holdings in Florida. For more information about ALLETE, visit the company's web site at www.allete.com.
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.
"The quarter included charges related to our exit of non-strategic businesses," said David Gartzke, ALLETE chairman, president and CEO. Excluding these charges, earnings per share were 46 cents on net income of $37.5 million.
"We are pleased that Automotive Services had another strong quarter and is on course to meet its earnings growth target of 30 percent over last year," Gartzke added. "ALLETE remains on track to achieve earnings per share of $2.13 to $2.17 for the year."
Automotive Services showed continued growth with net income for the quarter rising by $6.6 million over 2001. This 36 percent increase was primarily due to high conversion rates, greater efficiencies and a mandated accounting change related to goodwill at ADESA. The number of vehicles financed at AFC increased seven percent, and ADESA Impact sold 37 percent more total loss vehicles compared with the first quarter of 2001.
Net income from Energy Services fell to $9.1 million for the quarter, compared with $12.4 million in the first quarter of 2001. Mild weather contributed to reduced wholesale power marketing and trading sales.
Net income from Investments and Corporate Charges was down $600,000 from last year due in part to lower returns within the company's securities portfolio.
Discontinued Operations included $2.3 million of after-tax exit charges related to the Electric Odyssey retail business and the Great Rigs automotive transport company.
"Our planned sale of Florida Water Services continues to progress," Gartzke said. "The potential buyer, the Florida Governmental Utility Authority, has scheduled a public meeting for May 2, which is required before a definitive purchase agreement can be signed."
ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE's holdings include ADESA, the second largest wholesale vehicle auction network in North America; AFC, the leading provider of independent auto dealer inventory financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States; and significant real estate holdings in Florida. For more information about ALLETE, visit the company's web site at www.allete.com.
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.
