EX-99 5 exhibit_99.htm FURNISHED ALLETE, INC. FIRST QUARTER 2008 PRESS RELEASE exhibit_99.htm
Exhibit 99
 
ALLETE First Quarter 2008 Form 10-Q


  allete logo
For Release:
May 2, 2008
Contact:
Steve Kinney
 
218-722-5642
 
hkinney@allete.com
Investor
Tim Thorp
Contact:
218-723-3953
 
tthorp@allete.com
NEWS
    

 
ALLETE reports first quarter 2008 earnings of 82 cents per share
 
Duluth, Minn. -- ALLETE, Inc. (NYSE: ALE) today reported first quarter 2008 earnings of 82 cents per share, compared to 93 cents per share in the first quarter of 2007.
 
Net income in the quarter ending March 31, 2008 was $23.6 million on revenue of $213.4 million, compared to net income of $26.3 million on revenue of $205.3 million in the first quarter a year ago.
 
“Financial performance in the first quarter was in line with our expectations,” said Don Shippar, ALLETE’s chairman, president and CEO. “We’re on track to meet our earnings expectations of $2.70 to $2.90 per share in 2008.”
 
ALLETE’s Regulated Utility income declined in the first quarter of 2008 compared to 2007. Higher operating expenses and reduced margins on sales to other power suppliers were partially offset by additional revenue from customer rate adjustments that recover the costs of environmental retrofits now underway. The quarter also included increased electricity demand due, in part, to colder winter weather.
 
Nonregulated Energy Operations income was comparatively lower in 2008 due to a $1.2 million gain on the sale of property in northeastern Minnesota in the first quarter of 2007. A higher balance in ALLETE’s investment in the American Transmission Company contributed to increased income in the ATC segment.
 
Income declined from $3.1 million in the first quarter of 2007 to a $500,000 net loss in the Real Estate segment, reflecting market conditions both nationally and in Florida. Financial results in this business typically fluctuate from quarter to quarter.
 
In ALLETE’s Other segment, net income increased by $3.4 million, primarily due to gains on sales of investments.
 

 
ALLETE’s corporate headquarters are in Duluth, Minnesota. ALLETE provides energy services in the upper Midwest and has significant real estate holdings in Florida. More information about the company is available on ALLETE’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.
 
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ALLETE, Inc.
 
Consolidated Statement of Income
For the Periods Ended March 31, 2008 and 2007
Millions Except Per Share Amounts
     
Quarter Ended
     
2008
2007
Operating Revenue
$213.4
$205.3
Operating Expenses
    
 
Fuel and Purchased Power
86.3
77.7
 
Operating and Maintenance
82.4
74.6
 
Depreciation
12.7
11.7
   
Total Operating Expenses
181.4
164.0
Operating Income
32.0
41.3
Other Income (Expense)
    
 
Interest Expense
(6.7)
(6.3)
 
Equity Earnings in ATC
3.4
2.9
 
Other
8.6
4.6
   
Total Other Income (Expense)
5.3
1.2
Income Before Minority Interest and Income Taxes
37.3
42.5
Income Tax Expense
13.7
16.1
Minority Interest
–
0.1
Net Income
$23.6
$26.3
         
Average Shares of Common Stock
    
 
Basic
28.7
28.1
 
Diluted
28.7
28.1
Basic and Diluted Earnings Per Share of Common Stock
$0.82
$0.93
         
Dividends Per Share of Common Stock
$0.43
$0.41



Consolidated Balance Sheet
Millions
 
Mar. 31,
Dec. 31,
  
Mar. 31,
Dec. 31,
 
2008
2007
  
2008
2007
Assets
    
Liabilities and Shareholders' Equity
    
Cash and Short-Term Investments
$76.2
$46.4
Current Liabilities
$133.6
$137.1
Other Current Assets
149.4
168.1
Long-Term Debt
470.3
410.9
Property, Plant and Equipment
1,153.1
1,104.5
Other Liabilities
360.5
353.6
Investments
225.8
213.8
Shareholders' Equity
751.4
742.6
Other
111.3
111.4
      
Total Assets
$1,715.8
$1,644.2
Total Liabilities and Shareholders' Equity
$1,715.8
$1,644.2

 
 
 


         
Quarter Ended
         
March 31,
ALLETE, Inc.
  
2008
2007
Income (Loss)
      
Millions
          
 
Regulated Utility
$18.1
$18.8
 
Nonregulated Energy Operations
0.2
2.2
 
ATC
    
2.0
1.8
 
Real Estate
  
(0.5)
3.1
 
Other
    
3.8
0.4
 
Net Income
  
$23.6
$26.3
Diluted Earnings Per Share
$0.82
$0.93
             
Statistical Data
      
Corporate
        
 
Common Stock
    
   
High
  
$39.86
$49.69
   
Low
  
$33.76
$44.93
   
Close
  
$38.62
$46.62
 
Book Value
  
$24.36
$22.54
             
Kilowatthours Sold
    
Millions
          
 
Regulated Utility
    
   
Retail and Municipals
    
     
Residential
362.6
341.6
     
Commercial
359.6
352.2
     
Municipals
272.9
266.4
     
Industrial
1,823.2
1,705.4
     
Other
22.3
22.2
       
Total Retail and Municipal
2,840.6
2,687.8
   
Other Power Suppliers
404.1
524.0
       
Total Regulated Utility
3,244.7
3,211.8
 
Nonregulated Energy Operations
48.6
63.7
       
Total Kilowatthours Sold
3,293.3
3,275.5
             
Real Estate
        
 
Other Land
      
   
Acres Sold
2
367


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.