UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of Earliest Event Reported) – October 30, 2009
ALLETE,
Inc.
(Exact
name of registrant as specified in its charter)
|
Minnesota
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1-3548
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41-0418150
|
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(State
or other jurisdiction of
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(Commission
File Number)
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(IRS
Employer
|
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incorporation
or organization)
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Identification
No.)
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30
West Superior Street
Duluth,
Minnesota 55802-2093
(Address
of principal executive offices, including zip code)
(218)
279-5000
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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SECTION
2 – FINANCIAL INFORMATION
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Item
2.02
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Results
of Operations and Financial
Condition
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On
October 30, 2009, ALLETE, Inc. (ALLETE) issued a press release announcing
earnings for the third quarter of 2009, which is attached to this Current Report
on Form 8-K and furnished as Exhibit 99.
SECTION
9 – FINANCIAL STATEMENTS AND EXHIBITS
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Item
9.01
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Financial
Statements and Exhibits
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(d)
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Exhibits
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Exhibit
Number
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99
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ALLETE
News Release dated October 30, 2009, announcing 2009 third quarter
earnings. (This exhibit has been furnished
and shall not be deemed “filed” for purposes of Section 18 of the
Securities Exchange Act of 1934, nor shall it be deemed incorporated by
reference in any filing under the Securities Act of 1933, except as shall
be expressly set forth by specific reference in such
filing.)
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Readers
are cautioned that forward-looking statements should be read in conjunction with
ALLETE’s disclosures under the heading: “SAFE HARBOR STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995” located on page 2 of this Form
8-K.
1
ALLETE Form 8-K dated October 30, 2009
Safe
Harbor Statement
Under
the Private Securities Litigation Reform Act of 1995
Statements
in this report that are not statements of historical facts may be considered
“forward-looking” and, accordingly, involve risks and uncertainties that could
cause actual results to differ materially from those discussed. Although such
forward-looking statements have been made in good faith and are based on
reasonable assumptions, there is no assurance that the expected results will be
achieved. Any statements that express, or involve discussions as to, future
expectations, risks, beliefs, plans, objectives, assumptions, events,
uncertainties, financial performance or growth strategies (often, but not
always, through the use of words or phrases such as “anticipates,” “believes,”
“estimates,” “expects,” “intends,” “plans,” “projects,” “will likely result,”
“will continue,“ “could,” “may,” “potential,” “target,” “outlook” or words of
similar meaning) are not statements of historical facts and may be
forward-looking.
In
connection with the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995, we are hereby filing cautionary statements identifying
important factors that could cause our actual results to differ materially from
those projected, or expectations suggested, in forward-looking statements made
by or on behalf of ALLETE in this Current Report on Form 8-K, in presentations,
on our website, in response to questions or otherwise. These statements are
qualified in their entirety by reference to, and are accompanied by, the
following important factors, in addition to any assumptions and other factors
referred to specifically in connection with such forward-looking
statements:
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·
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our
ability to successfully implement our strategic
objectives;
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·
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our
ability to manage expansion and integrate acquisitions;
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·
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prevailing
governmental policies, regulatory actions, and legislation including those
of the United States Congress, state legislatures, the FERC, the MPUC, the
PSCW, and various local and county regulators, and city administrators,
about allowed rates of return, financings, industry and rate structure,
acquisition and disposal of assets and facilities, real estate
development, operation and construction of plant facilities, recovery of
purchased power, capital investments and other expenses, present or
prospective wholesale and retail competition (including but not limited to
transmission costs), zoning and permitting of land held for resale and
environmental matters;
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·
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the
potential impacts of climate change and future regulation to restrict the
emissions of GHG on our Regulated Operations;
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·
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effects
of restructuring initiatives in the electric industry;
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·
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economic
and geographic factors, including political and economic
risks;
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·
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changes
in and compliance with laws and regulations;
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·
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weather
conditions;
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·
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natural
disasters and pandemic diseases;
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·
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war
and acts of terrorism;
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·
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wholesale
power market conditions;
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·
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population
growth rates and demographic patterns;
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·
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effects
of competition, including competition for retail and wholesale
customers;
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·
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changes
in the real estate market;
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·
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pricing
and transportation of commodities;
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·
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changes
in tax rates or policies or in rates of inflation;
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·
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project
delays or changes in project costs;
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·
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availability
and management of construction
materials and skilled construction labor for capital
projects;
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·
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changes
in operating expenses, capital and land
development expenditures;
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·
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global
and domestic economic conditions affecting us or our
customers;
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·
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our
ability to access capital markets and bank financing;
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·
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changes
in interest rates and the performance of the financial
markets;
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·
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our
ability to replace a mature workforce and retain qualified, skilled and
experienced personnel; and
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·
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the
outcome of legal and administrative proceedings (whether civil or
criminal) and settlements that affect the business and profitability of
ALLETE.
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Additional
disclosures regarding factors that could cause our results and performance to
differ from results or performance anticipated by this report are discussed in
Item 1A under the heading “Risk Factors” beginning on page 20 of our 2008
Form 10-K. Any forward-looking statement speaks only as of the date on
which such statement is made, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which that statement is made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not possible for
management to predict all of these factors, nor can it assess the impact of each
of these factors on the businesses of ALLETE or the extent to which any factor,
or combination of factors, may cause actual results to differ materially from
those contained in any forward-looking statement. Readers are urged to carefully
review and consider the various disclosures made by us in this Form 8-K and in
our other reports filed with the SEC that attempt to advise interested parties
of the factors that may affect our business.
2
ALLETE Form 8-K dated October 30, 2009
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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ALLETE,
Inc.
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||
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October
30, 2009
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/s/
Steven Q. DeVinck
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Steven
Q. DeVinck
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Controller
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3
ALLETE Form 8-K dated
October 30, 2009
NEWS
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Exhibit
99
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For
Release:
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October
30, 2009
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Investor
Contact:
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Tim
Thorp
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218-723-3953
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tthorp@allete.com
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Contact:
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Amy
Rutledge
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218-723-7400
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218-348-2961
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arutledge@mnpower.com
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ALLETE
reports third quarter 2009 earnings
DULUTH,
Minn. – ALLETE (NYSE: ALE) today reported third quarter 2009 earnings of 49
cents per share, compared with 85 cents in the same period a year
ago.
Net
income in the third quarter of 2009 was $16.0 million on operating revenue of
$178.8 million, compared with net income of $24.7 million and revenue of $201.7
million in the third quarter of 2008. Last year’s results were boosted by a $4.9
million, or 15 cents per share, non-recurring item.
Net
income from ALLETE’s Regulated Operations segment was $16.6 million compared to
$19.2 million in the third quarter 2008. Total kilowatt-hour sales declined
approximately 10 percent from year-ago levels due to economic conditions that
impacted all classes of retail electric customers. The lower retail sales were
partially offset by sales to other power suppliers. In addition, currently
authorized interim electric rates are lower compared with the third quarter of
2008, resulting in reduced revenue year-over-year.
“The
first eight months of the year have been difficult for our taconite customers,”
said Chairman and CEO Don Shippar. “However, we are encouraged that they have
begun to increase their production.”
ALLETE’s
Investments and Other segment reported a loss of $600,000 in the third quarter
of 2009, compared to net income of $5.5 million in the comparable period a year
ago. The difference is mainly due to the aforementioned non-recurring item: a
positive resolution of two outstanding tax issues in the third quarter of 2008.
Also included this quarter was a $1.5 million net loss at ALLETE Properties. The
company now anticipates recording a net loss for ALLETE Properties for the
entire year.
Also
affecting the quarterly comparison from 2008 to 2009 was the 6 cents per share
dilutive impact of a higher common share balance than a year ago. ALLETE has
issued equity over the past year to fund significant capital investments in its
regulated operations.
Because
of lowered expectations for ALLETE Properties, the company now expects its 2009
earnings will fall within a range of $1.95 to $2.05, excluding rate refunds
related to 2008 that were recorded earlier this year.
ALLETE
provides regulated energy services in Minnesota and Wisconsin, owns BNI Coal in
North Dakota and maintains investments in the American Transmission Company and
Florida real estate. More information about the company is available 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.
###
ALLETE,
Inc.
Consolidated
Statement of Income
For
the Periods Ended September 30, 2009 and 2008
Millions
Except Per Share Amounts – Unaudited
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Quarter
Ended
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Year
to Date
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|||||
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2009
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2008
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2009
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2008
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||
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Operating
Revenue
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||||||
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Operating
Revenue
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$178.8
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$201.7
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$550.7
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$604.9
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||
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Prior
Year Rate Refunds
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–
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–
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(7.6)
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–
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Total
Operating Revenue
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178.8
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201.7
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543.1
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604.9
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Operating
Expenses
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||||||
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Fuel
and Purchased Power
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69.8
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81.0
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199.4
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242.3
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Operating
and Maintenance
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67.5
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74.0
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224.7
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241.5
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Depreciation
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16.1
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13.5
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46.8
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39.1
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||
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Total
Operating Expenses
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153.4
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168.5
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470.9
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522.9
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Operating
Income
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25.4
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33.2
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72.2
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82.0
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Other
Income (Expense)
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||||||
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Interest
Expense
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(8.3)
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(6.9)
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(25.4)
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(19.5)
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Equity
Earnings in ATC
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4.4
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4.2
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12.9
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11.2
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Other
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0.8
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2.8
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3.8
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13.9
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Total
Other Income (Expense)
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(3.1)
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0.1
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(8.7)
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5.6
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||
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Income
Before Non-Controlling Interest and Income
Taxes
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22.3
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33.3
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63.5
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87.6
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Income
Tax Expense
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6.5
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8.4
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21.5
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28.3
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Net
Income
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15.8
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24.9
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42.0
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59.3
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||
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Less:
Non-Controlling Interest in Subsidiaries
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(0.2)
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0.2
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(0.3)
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0.3
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||
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Net
Income Attributable to ALLETE
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$16.0
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$24.7
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$42.3
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$59.0
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||
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Average
Shares of Common Stock
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||||||
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Basic
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32.8
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29.1
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31.8
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28.9
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Diluted
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32.9
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29.3
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31.9
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29.0
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||
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Basic
and Diluted Earnings Per Share of Common Stock
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$0.49
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$0.85
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$1.33
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$2.04
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||
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Dividends
Per Share of Common Stock
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$0.44
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$0.43
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$1.32
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$1.29
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||
Consolidated
Balance Sheet
Millions
– Unaudited
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Sep.
30,
|
Dec.
31,
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Sep.
30,
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Dec.
31,
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|||
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2009
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2008
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2009
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2008
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Assets
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Liabilities
and Equity
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|||||
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Cash
and Short-Term Investments
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$54.3
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$102.0
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Current
Liabilities
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$142.1
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$150.7
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Other
Current Assets
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158.2
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150.3
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Long-Term
Debt
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628.4
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588.3
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Property,
Plant and Equipment
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1,530.5
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1,387.3
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Other
Liabilities
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352.0
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389.3
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Investment
in ATC
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85.1
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76.9
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Deferred
Income Taxes & Investment Tax Credits
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217.5
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169.6
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Investments
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138.8
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136.9
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Equity
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915.1
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836.9
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|
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Other
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288.2
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281.4
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|||
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Total
Assets
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$2,255.1
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$2,134.8
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Total
Liabilities and Equity
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$2,255.1
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$2,134.8
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Quarter
Ended
|
Year
to Date
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|||||||
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September
30,
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September
30,
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|||||||
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ALLETE,
Inc.
|
2009
|
2008
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2009
|
2008
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||||
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Income
(Loss)
|
||||||||
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Millions
|
||||||||
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Regulated
Operations
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$16.6
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$19.2
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$45.0
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$46.5
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||||
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Investments
and Other
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(0.6)
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5.5
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(2.7)
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12.5
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||||
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Net
Income Attributable to ALLETE
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$16.0
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$24.7
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$42.3
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$59.0
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||||
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Diluted
Earnings Per Share
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$0.49
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$0.85
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$1.33
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$2.04
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||||
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Statistical
Data
|
||||||||
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Corporate
|
||||||||
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Common
Stock
|
||||||||
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High
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$34.57
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$49.00
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$34.57
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$49.00
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||||
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Low
|
$27.75
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$38.05
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$23.35
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$33.76
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||||
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Close
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$33.57
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$44.50
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$33.57
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$44.50
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||||
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Book
Value
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$25.95
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$25.32
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$25.95
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$25.32
|
||||
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Kilowatt-hours
Sold
|
||||||||
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Millions
|
||||||||
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Regulated
Utility
|
||||||||
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Retail
and Municipals
|
||||||||
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Residential
|
240
|
252
|
857
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854
|
||||
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Commercial
|
352
|
381
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1,061
|
1,090
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||||
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Municipals
|
243
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243
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729
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742
|
||||
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Industrial
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984
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1,854
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3,182
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5,466
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||||
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Total
Retail and Municipal
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1,819
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2,730
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5,829
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8,152
|
||||
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Other
Power Suppliers
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1,051
|
465
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3,075
|
1,244
|
||||
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Total
Regulated Utility
|
2,870
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3,195
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8,904
|
9,396
|
||||
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Non-regulated
Energy Operations
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56
|
61
|
162
|
169
|
||||
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Total
Kilowatt-hours Sold
|
2,926
|
3,256
|
9,066
|
9,565
|
||||
This
exhibit has been furnished and shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933, except
as shall be expressly set forth by specific reference in such
filing.