ALLETE Reports Solid First Quarter
Earnings
DULUTH, Minn., April 18 ALLETE today announced
earnings of 46 cents per share for the first quarter of 2001, compared to
43 cents for the first quarter of 2000. Net income was up 8 percent to
$32.9 million on quarterly revenue of $413.0 million, compared to
$30.4 million of net income and $322.6 million in revenue a year ago.
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"Each of our four businesses performed well this quarter," said Ed
Russell, ALLETE President and CEO. "Our diverse strengths in basic
necessities -- cars, electricity, water and real estate -- continue to help us
prosper during times of economic challenge."
Automotive services showed continued growth with net income for the
quarter rising by $5.8 million. The 49 percent increase over the same period
last year was due in large part to acquisitions made in 2000 and increased
financing activity at Automotive Finance Corporation.
Energy services posted an 11 percent increase in net income due to a
combination of factors. Property taxes and O&M expenses were down compared to
a year ago. Wholesale, residential and commercial margins were higher than
last year and helped offset a decrease in industrial margins.
Water services experienced continued strong customer growth of 6 percent
over the period. In addition, higher rates in North Carolina, productivity
enhancements and an escrow fund adjustment in Florida helped this business
segment achieve a 29 percent increase in net income for the quarter over last
year.
Investments reported a $6.0 million decrease in net income for the
quarter, primarily due to three large real estate transactions that occurred
in the first quarter of 2000. ALLETE Properties recently announced that its
largest sale ever is expected to close in June 2001. The company's securities
portfolio saw strong returns in 2001 compared to 2000, but had less cash to
invest due to ALLETE's significant acquisition activity during the past year.
ALLETE is a multi-services company with corporate headquarters in Duluth,
Minn. ALLETE's holdings include the second largest wholesale automobile
auction network in North America; the leading provider of independent auto
dealer inventory financing; the largest private water utilities in Florida and
North Carolina; significant real estate holdings in Florida; and a low-cost
electric utility that serves some of the largest industrial customers in the
United States.
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
Consolidated Statement of Income
For the Periods Ended March 31, 2001 and 2000
Millions Except Per Share Amounts
Year to Date
2001 2000
Operating Revenue
Energy Services $159.4 $141.6
Automotive Services 211.1 119.5
Water Services 29.5 28.0
Investments 13.0 33.5
Total Operating Revenue 413.0 322.6
Operating Expenses
Fuel and Purchased Power 62.4 53.1
Operations 272.6 201.2
Interest Expense 22.0 16.3
Total Operating Expenses 357.0 270.6
Operating Income 56.0 52.0
Distributions on Redeemable
Preferred Securities of Subsidiary 1.5 1.5
Income Tax Expense 21.6 20.1
Net Income $32.9 $30.4
Average Shares of Common Stock
Basic 71.2 69.1
Diluted 71.8 69.2
Earnings Per Share of Common Stock
Basic $0.46 $0.43
Diluted $0.46 $0.43
Dividends Per Share of Common Stock $0.2675 $0.2675
ALLETE
Consolidated Balance Sheet
Millions
Mar. 31, Dec. 31,
2001 2000
Assets
Current Assets $871.0 $731.0
Property, Plant and Equipment 1,493.5 1,479.7
Investments 118.0 116.4
Goodwill 499.5 472.8
Other 115.5 114.1
Total Assets $3,097.5 $2,914.0
Mar. 31, Dec. 31,
2001 2000
Liabilities and Stockholders' Equity
Current Liabilities $755.4 $707.0
Long-Term Debt 1,069.5 952.3
Other Liabilities 280.1 278.9
Mandatorily Redeemable Preferred
Securities of ALLETE Capital I 75.0 75.0
Stockholders' Equity 917.5 900.8
Total Liabilities and Stockholders' Equity $3,097.5 $2,914.0
Year to Date
March 31,
ALLETE 2001 2000
Net Income
Millions
Energy Services $11.9 $10.7
Automotive Services 17.7 11.9
Water Services 3.1 2.4
Investments 5.5 11.5
Corporate Charges (5.3) (6.1)
Net Income $32.9 $30.4
Diluted Earnings Per Share $0.46 $0.43
Statistical Data
Corporate
Common Stock
High $26.00 $18.06
Low $20.19 $14.75
Close $25.82 $16.63
Book Value $12.13 $11.45
Energy Services
Millions of Kilowatthours Sold
Retail
Residential 270.4 257.8
Commercial 285.4 276.8
Industrial 1,524.3 1,719.0
Other 18.8 18.3
Resale 814.1 847.8
2,913.0 3,119.7
Automotive Services
Vehicles Sold 500,000 295,000
Vehicles Financed 221,000 195,000
EBITDAL (Millions) ** $57.8 $34.4
Water Services
Millions of Gallons Billed
Florida Water Services
Water 4,344.3 4,238.2
Wastewater 1,297.0 1,289.4
Heater Utilities
Water 672.1 683.5
** Earnings Before Interest, Taxes, Depreciation, Amortization and Lease
Expense
