FERGUS FALLS, Minn., Feb. 12, 2018 (GLOBE NEWSWIRE) -- Otter Tail Corporation (NASDAQ:OTTR) today announced financial results for the year ended December 31, 2017.
|Operating Revenues (in millions)||$||206.7||$||196.6||$||849.3||$||803.5|
|Diluted Earnings Per Share – Continuing Operations||$||0.45||$||0.44||$||1.81||$||1.60|
|Add Back: Impact of Tax Reform||0.05||--||0.05||--|
|Adjusted Diluted Earnings Per Share – Continuing Operations1||$||0.50||$||0.44||$||1.86||$||1.60|
1 This release includes measures of financial performance and presentations of financial information that are not defined by generally accepted accounting principles (GAAP). Management believes that presenting consolidated net income and diluted earnings per share and net income by segment on a Non-GAAP basis by excluding the impact of the 2017 tax reform tax rate reduction on deferred tax values from consolidated net income and diluted earnings per share and net income by segment will assist investors in making an evaluation of our performance against prior periods on a comparable basis. Management understands that there are material limitations on the use of non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined and provided in accordance with GAAP.
“Our dedicated employees again proved to be our strongest asset as they delivered 2017 diluted earnings per share from continuing operations of $1.81,” said President and CEO Chuck MacFarlane. “These excellent results include a positive $0.09 per diluted share estimated impact from our Plastics segment’s response to hurricane-related market dynamics.
“Our results also include a reduction of $0.05 per diluted share from a change in value of net deferred tax assets related to the Tax Cuts and Jobs Act signed into law on December 22, 2017. This reduction from the new tax law was not contemplated when we updated our 2017 diluted earnings per share guidance to $1.75 - $1.85. Our adjusted diluted earnings per share before the tax impact was $1.86.
“Operationally, Otter Tail Power Company continued its strong performance, equaling 2016 for its lowest number of OSHA recordable injuries on record and continuing high customer satisfaction scores as measured by J.D. Power and Associates.
“Otter Tail Power Company also made excellent progress on two key growth projects in 2017: Big Stone South-Brookings and Big Stone South-Ellendale, two 345 kilovolt transmission projects that the Midcontinent Independent System Operator has designated as Multi-Value Projects. We are a 50 percent owner in both projects. The Big Stone South-Brookings project was completed in September on time and under budget. The Big Stone South-Ellendale project, which Otter Tail Power Company manages, is scheduled for completion in 2019. Otter Tail expects its investment in the two projects to be approximately $200 million.
“Looking forward, Otter Tail Power Company has a strong rate base growth plan driven by our renewable energy and natural gas generation projects. Both projects made good progress in their development in 2017. The Minnesota Public Utilities Commission approved our resource plan and the North Dakota Public Service Commission granted Advance Determinations of Prudence for the Merricourt wind and Astoria natural gas-fired generation projects. Overall, Otter Tail Power Company plans to spend approximately $901 million on capital projects from 2018 through 2022, including these investments in renewable energy, natural gas-fired generation and regional transmission projects.
“Tax reform will benefit Otter Tail Power Company’s rate base growth. Prior to tax reform, we were forecasting a 7.2 percent compound annual growth rate between 2016 and 2021. With tax reform we are projecting this will move to 9.0 percent for the timeframe 2017 through 2022.
“Also important is a positive outcome in the rate case Otter Tail Power Company filed with the North Dakota Public Service Commission in November, seeking permission to increase non-fuel base rates by approximately $13 million, or 8.72 percent. The North Dakota Public Service Commission granted an 8.64 percent interim rate increase beginning January 1, 2018, while it considers the overall request. We expect an adjustment related to tax reform legislation and a final determination by the end of this year.
“Business conditions are showing signs of improvement for our manufacturing companies.
“BTD Manufacturing, our custom metal fabricator, achieved year-over-year net earnings improvement. The company’s customer base in agriculture, energy, and recreational utility vehicles has begun to show economic recovery.
“T. O. Plastics, our plastics thermoforming manufacturer, achieved 8 percent overall revenue growth from increased sales through deeper penetration into its primary market, horticulture containers, and a renewed focus on the life sciences market.
“Northern Pipe Products and Vinyltech, our PVC pipe manufacturing companies, sold more pounds and earned higher margins, partly due to the previously mentioned hurricane-related market dynamics, which we do not expect to repeat in 2018. But general market conditions for PVC pipe also improved, and our pipe manufacturers are efficient, low cost operators.
“Our strategic initiatives to grow our businesses, achieve operational and commercial excellence, and develop our talent are strengthening our position in the markets we serve. We remain confident in our ability to grow earnings per share from continuing operations in the range of 4 to 7 percent compounded annually from $1.81 in 2017, the base year.”
Cash Flow from Operations and Liquidity
The corporation’s consolidated net cash provided by continuing operations in 2017 was $173.6 million compared with $163.5 million in 2016. The $10.1 million increase in cash provided by continuing operations between the years includes a $10.1 million increase in net income from continuing operations and a $10.0 million reduction in discretionary contributions to our pension plan. Changes in long-term assets and liabilities, including deferred taxes, totaling $17.4 million were more than offset by a $27.0 million increase in cash used for working capital items. The increase in cash used for working capital between the periods is primarily due to a $19.1 million increase in cash used for payables and other current liabilities between the years at Otter Tail Power Company related to the timing of payments as cash use decreased $10.3 million in 2016 compared to an increase of $8.8 million in cash used for payables and other current liabilities in 2017. Cash used for inventories increased $6.2 million between the years primarily due to increased levels of inventory in each of our business segments.
The following table presents the status of our lines of credit as of December 31, 2017:
|(in thousands)||Line Limit||In Use On|
|Restricted due to |
Letters of Credit
|Otter Tail Corporation Credit Agreement||$||130,000||$||--||$||--||$||130,000||$||130,000|
|Otter Tail Power Company Credit Agreement||170,000||112,371||300||57,329||127,067|
On October 31, 2017 both the Otter Tail Corporation and the Otter Tail Power Company Credit Agreements were amended to extend the expiration dates by one year from October 29, 2021 to October 31, 2022.
On November 14, 2017 Otter Tail Power Company entered into a Note Purchase Agreement, pursuant to which it agreed to issue to the purchasers, in a private placement transaction, $100 million aggregate principal amount of its 4.07% Series 2018A Senior Unsecured Notes due February 7, 2048 (the 2018 Notes). The 2018 Notes were issued on February 7, 2018. Proceeds from the 2018 Notes were used to repay $100 million in outstanding borrowings under the Otter Tail Power Company Credit Agreement. The borrowings under the Otter Tail Power Credit Agreement were used to retire its $33.0 million in 5.95% Senior Unsecured Series A Notes at maturity on August 20, 2017 and to finance portions of its investments in the Big Stone South-Brookings and Big Stone South-Ellendale, 345-kilovolt transmission projects.
2017 Segment Performance Summary
|($s in thousands)||2017||2016||Change||% Change|
|Retail Electric Revenues||$||374,931||$||376,610||$||(1,679||)||(0.4||)|
|Wholesale Electric Revenues||5,173||4,584||589||12.8|
|Other Electric Revenues||54,433||46,189||8,244||17.8|
|Total Electric Revenues||$||434,537||$||427,383||$||7,154||1.7|
|Net Income before Impact of Tax Reform1||$||49,904||$||49,829||$||75||0.2|
|Impact of Tax Reform||(458||)||--||(458||)||--|
|Heating Degree Days||5,931||5,314||617||11.6|
|Cooling Degree Days||380||451||(71||)||(15.7||)|
The following table shows heating and cooling degree days as a percent of normal:
|Heating Degree Days||93.9%||84.1%|
|Cooling Degree Days||82.1%||97.4%|
The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions in 2017 and 2016 and between the years:
|2017 vs Normal||2016 vs Normal||2017 vs 2016|
|Effect on Diluted Earnings Per Share||$(0.04)||$(0.07)||$ 0.03|
Retail electric revenues decreased $1.7 million as a result of:
A $0.6 million increase in revenue from wholesale electric sales from company-owned generation was mostly offset by a $0.4 million increase in fuel costs for wholesale generation.
Other electric revenues increased $8.2 million as a result of:
Production fuel costs increased $4.9 million as a result of a 4.0% increase in kwhs generated. This was due to increased generation from Coyote Station and Hoot Lake Plant because of Coyote Station’s greater availability, increased demand due to colder weather in 2017 and higher market prices for electricity that resulted in increased dispatch of Hoot Lake Plant.
The cost of purchased power to serve retail customers increased $1.6 million despite a 3.4% decrease in kwhs purchased. This was a result of higher market prices for electricity driven by increased demand in 2017 due, in part, to colder weather in 2017 than in 2016.
Electric operating and maintenance expenses increased $0.1 million as a result of:
Depreciation and amortization expense decreased $0.5 million due to lower depreciation rates.
Property tax expense increased $0.8 million mainly due to transmission line additions in South Dakota related to the construction of the Big Stone South-Ellendale and Big Stone South-Brookings 345-kV transmission projects.
Electric segment income tax expenses increased $0.6 million, mainly due to $0.5 million in tax expense resulting from the effect of tax reform on deferred taxes on a portion of supplemental retirement program costs not subject to rate recovery.
|(in thousands)||2017||2016||Change||% Change|
|Net Income before Impact of Tax Reform1||$||8,413||$||5,694||$||2,719||47.8|
|Impact of Tax Reform||2,637||--||2,637||--|
At BTD Manufacturing, Inc. (BTD), revenues increased $5.9 million. This is due to a $3.3 million increase in product sales to manufacturers of recreational and lawn and garden equipment from BTD’s Minnesota and Georgia manufacturing facilities offset by lower sales in the energy end-use market at the Illinois facility. Scrap revenues increased $2.6 million due to higher volume and higher scrap-metal prices. Cost of products sold increased $2.3 million and operating expenses increased $1.8 million between the years. Collectively, these items resulted in improved operating margins of $1.9 million in 2017 compared with 2016. A $1.4 million decrease in interest expense as a result of the December 2016 refinancing of long-term debt at lower interest rates was mostly offset by a $1.0 million increase in income tax expense. This resulted in a $2.3 million increase in year-over-year income at BTD before recording the effects of $2.6 million in tax savings related to a reduction in deferred tax liabilities as a result of lower tax rates from tax reform.
At T.O. Plastics, Inc. (T.O. Plastics), revenues increased $2.5 million, including increases of $1.3 million from sales of life science products, $1.0 million from sales of horticultural products and $0.2 million from sales of industrial products. Costs of products sold increased $2.4 million due to the increase in sales while operating expenses decreased $0.1 million. Depreciation expense was down $0.3 million due to certain assets reaching the ends of their depreciable lives in 2017. A $0.3 million decrease in interest expense as a result of the December 2016 refinancing of long-term debt at lower interest rates was more than offset by a $0.4 million increase in income tax expense related to a $0.8 million increase in income before income taxes, resulting in a $0.4 million increase in year-over-year income at T.O. Plastics.
|(in thousands)||2017||2016||Change||% Change|
|Net Income before Impact of Tax Reform1||$||18,433||$||10,628||$||7,805||73.4|
|Impact of Tax Reform||3,263||--||3,263||--|
Plastics segment revenues and net income increased $30.2 million and $11.1 million, respectively, as a result of a 7.2% increase in pounds of polyvinyl chloride (PVC) pipe sold and an 11.5% increase in PVC pipe prices between the years. Cost of products sold increased $16.6 million due to the increase in sales volume and a 5.9% increase in the cost per pound of pipe sold. Year-over-year improvement in our normal business operations provided approximately $4.4 million, or $0.11 per diluted share, of the segment’s increase in net income. The remaining increase in net income and earnings per diluted share is due to two items. First, increased sales and pricing were affected by hurricanes in the Gulf Coast region of the United States, where the major U.S. resin production plants are located. Major resin suppliers shut down production facilities which impacted raw material availability. Distributors and contractors became concerned about pipe availability. This accelerated pipe demand and created positive sales price pressure in the market. Even though hurricanes impacted raw material availability, our pipe companies had sufficient raw materials to run their plants and meet the additional demand. The impact of Hurricane Harvey on 2017 net income and diluted earnings per share is estimated to be $3.4 million and $0.09, respectively. Second, the Plastics segment recorded $3.3 million in tax savings, $0.08 in diluted earnings per share, related to a reduction in deferred tax liabilities as a result of lower tax rates from tax reform.
|(in thousands)||2017||2016||Change||% Change|
|Add back: Impact of Tax Reform||(7,198||)||--||(7,198||)||--|
|Net Loss (net-of-tax) before Impact of Tax Reform1||$||(2,875||)||$||(4,114||)||$||1,239||(30.1||)|
Corporate costs net-of-tax before impact of tax reform1 decreased $1.2 million between the years mainly due to a $0.7 million excess tax benefit related to the accounting treatment of stock-based performance awards, a $0.3 million net-of-tax increase in the level of corporate costs allocated to the corporation’s operating companies and a $0.3 million reduction in labor costs due to a reduction in the number of corporate employees. Corporate recorded $7.2 million in additional income tax expense due to the impact of lower tax rates under tax reform reducing the value of deferred tax assets.
Fourth Quarter 2017 Consolidated Results
|(in thousands, except per share amounts)||4th Quarter|
|Revenues – Continuing Operations||$||206,690||$||196,640||$||10,050||5.1|
|Operating Income – Continuing Operations||$||32,135||$||29,156||$||2,979||10.2|
|Net Income – Continuing Operations||$||18,100||$||17,397||$||703||4.0|
|Add back: Impact of Tax Reform||1,756||--||1,756||--|
|Net Income – Continuing Operations before Impact of Tax Reform1||$||19,856||$||17,397||$||2,459||14.1|
|Diluted EPS – Continuing Operations||$||0.45||$||0.44||$||0.01||2.3|
|Add back: Impact of Tax Reform on Diluted EPS||0.05||--||0.05||--|
|Diluted EPS – Continuing Operations before Impact of Tax Reform1||$||0.50||$||0.44||$||0.06||13.6|
The increase in fourth quarter 2017 net income from continuing operations compared with the fourth quarter 2016 was driven by improved results in our Plastics and Manufacturing segments.
Plastics segment net income increased $5.9 million, which includes a $3.3 million reduction in income tax expense due to tax reform. Plastics segment net income before the impact of tax reform1 increased $2.6 million due to a 26.2% increase in revenue per pound of PVC pipe sold, offset by a 4.3% decrease in pounds of pipe sold. The increase in PVC pipe prices was partially offset by an 11.1% increase in the cost per pound of pipe sold. Pipe prices were up at the beginning of the fourth quarter of 2017 due to increased demand resulting from third quarter 2017 hurricanes in the Gulf Coast region of the United States. Cost of goods sold increased $1.5 million as a result of higher resin prices. Operating expenses increased $1.3 million, mainly due to increased incentives earned related to 2017 financial performance.
Manufacturing segment net income increased $4.7 million, which includes a $2.6 million reduction in income tax expense at BTD due to tax reform. Manufacturing segment net income before the impact of tax reform1 increased $2.1 million between the quarters due to improved quarter over quarter performance at BTD. Revenues at BTD increased $6.4 million due to increased product sales in Minnesota and Georgia to manufacturers of recreational and lawn and garden equipment and also due to $0.7 million in increased scrap revenues related to increased volume and higher scrap-metal prices. Net income at BTD before the impact of tax reform1 increased $2.4 million as a result of increased sales volume, while net income at T.O. Plastics decreased $0.3 million.
Electric segment net income decreased $2.7 million, which includes a $0.5 million increase in income tax expense due to tax reform. Electric segment net income before the impact of tax reform1 decreased $2.3 million between the quarters. Operating revenues decreased $3.4 million as a result of the following:
Fuel and purchased power costs to serve retail customers decreased $3.8 million, mainly as a result of a reduction in kwhs purchased, while fuel costs for wholesale sales increased $0.4 million as a result of the increase in wholesale kwh sales.
Electric segment operating expenses increased $2.8 million, including:
Corporate net losses increased by $7.2 million. The entire increase in net losses resulted from a $7.2 million increase in income tax expense due to tax reform.
Deferred tax assets and liabilities were reduced in value as a result of the tax rate reduction included in the 2017 Tax Cuts and Jobs Act. Following is the impact by segment on income tax expense for the quarter ended December 31, 2017:
2018 Business Outlook
We anticipate 2018 diluted earnings per share to be in the range of $1.80 to $1.95. This guidance reflects the current mix of businesses we own, strategies for improving future operating results, the cyclical nature of some of our businesses, and current regulatory factors and economic challenges facing our Electric, Manufacturing and Plastics segments. Due to the tax rate reduction in the 2017 Tax Cuts and Jobs Act, we expect 2018 earnings for our Manufacturing and Plastics segments to be positively impacted by $0.09 per share offset by $0.04 per share in our corporate cost center. We expect capital expenditures for 2018 to be $110 million compared with actual cash used for capital expenditures of $133 million in 2017. Our planned expenditures for 2018 include $33 million for the Big Stone South-Ellendale transmission line project, which positively impacts earnings by providing an immediate return on invested funds through rider recovery mechanisms.
Segment components of our 2018 earnings per share guidance range compared with 2017 actual earnings are as follows:
|2017 EPS by Segment||2018 EPS Guidance|
|Impact of |
of Tax Reform1
|Total – Continuing Operations||$1.81||$0.05||$1.86||$1.80||$1.95|
|Return on Equity||10.6%||10.8%||10.1%||10.9%|
Contributing to our earnings guidance for 2018 are the following items:
• We expect 2018 Electric segment net income to be higher than 2017 segment net income based on:
• We expect 2018 net income from our Manufacturing segment to increase over 2017 based on the following:
• We expect 2018 net income from the Plastics segment to be lower than 2017 because 2017 results included sales driven by customer reaction to the hurricanes that occurred in the Gulf of Mexico. This had an estimated impact on earnings of $0.09 per diluted share in 2017. We also expect lower operating margins in 2018 due to lower expected sales prices and increasing resin prices on similar sales volumes in 2018 compared to 2017 excluding the effect of the hurricanes on 2017 sales. Plastics net income for 2018 will be positively affected by lower effective tax rates in 2018 as a result of the new tax law.
• Corporate costs, net of tax, are expected to be higher in 2018 than in 2017 when excluding the effect of tax reform on 2017 net losses in the corporate cost center. The higher net-of-tax costs expected in 2018 are due, in part, to the lower tax rate that will be in effect in 2018.
The impact of 2017 tax reform legislation on future results is based on reasonable estimates reflecting the anticipated impact of tax reform, and is subject to adjustment upon obtaining additional information or to reflect future changes resulting from future legislation, rules, regulations or interpretations impacting tax reform. We will continue to analyze the impact of the 2017 tax reform legislation to assess the full effects on our future business and results.
The following table shows our 2017 capital expenditures and 2018 through 2022 anticipated capital expenditures and electric utility average rate base:
|Renewables and Natural Gas Generation||$||1||$||308||$||102||$||50||$||1||$||462|
|Transformative Technology and Infrastructure||--||22||32||43||39||136|
|Total Electric Segment||$||119||$||95||$||382||$||185||$||145||$||94||$||901|
|Manufacturing and Plastics Segments||14||15||14||15||14||14||72|
|Total Capital Expenditures||$||133||$||110||$||396||$||200||$||159||$||108||$||973|
|Total Electric Utility Average Rate Base||$||1,055||$||1,091||$||1,297||$||1,480||$||1,568||$||1,625|
The consolidated capital expenditure plan for the 2018-2022 time period calls for $973 million based on the need for additional wind and solar in rate base and capital spending for Astoria Station, a natural gas-fired plant that is expected to replace Hoot Lake Plant when it is retired in 2021. Given the increased capital expenditure plan, our compounded annual growth rate in rate base is projected to be 9.0% over the 2017 to 2022 timeframe.
Execution on the currently anticipated electric utility capital expenditure plan is expected to grow rate base and be a key driver in increasing utility earnings over the 2018 through 2022 timeframe.
CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on Tuesday, February 13, 2018, at 10:00 a.m. CT to discuss its financial and operating performance.
The presentation will be posted on our website before the webcast. To access the live webcast go to www.ottertail.com/presentations.cfm and select “Webcast.” Please allow extra time prior to the call to visit the site and download any software needed to listen to the webcast. An archived copy of the webcast will be available on our website shortly following the call.
If you are interested in asking a question during the live webcast, the Dial-In Number is: 877-312-8789, otherwise the listen only mode can be accessed by dialing 866-634-1342.
Risk Factors and Forward-Looking Statements that Could Affect Future Results
The information in this release includes certain forward-looking information, including 2018 expectations, made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe our expectations are based on reasonable assumptions, actual results may differ materially from those expectations. The following factors, among others, could cause our actual results to differ materially from those discussed in the forward-looking statements:
For a further discussion of other risk factors and cautionary statements, refer to reports we file with the Securities and Exchange Commission.
About The Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the NASDAQ Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are located in Fergus Falls, Minnesota, and Fargo, North Dakota.
See Otter Tail Corporation’s results of operations for the quarters and years ended December 31, 2017 and 2016 in the following financial statements: Consolidated Statements of Income, Consolidated Balance Sheets – Assets, Consolidated Balance Sheets – Liabilities and Equity, and Consolidated Statements of Cash Flows.
|Otter Tail Corporation|
|Consolidated Statements of Income|
|In thousands, except share and per share amounts|
|Quarter Ended |
|Operating Revenues by Segment|
|Total Operating Revenues||206,690||196,640||849,350||803,539|
|Fuel and Purchased Power||30,607||34,053||124,497||118,018|
|Nonelectric Cost of Products Sold (depreciation included below)||71,042||66,229||316,562||295,222|
|Electric Operating and Maintenance Expense||38,520||36,019||151,319||151,225|
|Nonelectric Operating and Maintenance Expense||11,705||9,374||43,240||40,264|
|Depreciation and Amortization||18,856||18,317||72,545||73,445|
|Property Taxes - Electric||3,825||3,492||15,053||14,266|
|Total Operating Expenses||174,555||167,484||723,216||692,440|
|Operating Income (Loss) by Segment|
|Total Operating Income||32,135||29,156||126,134||111,099|
|Income Tax Expense – Continuing Operations||7,748||4,343||27,043||20,081|
|Net Income (Loss) by Segment – Continuing Operations|
|Net Income from Continuing Operations||18,100||17,397||72,119||62,037|
|Income - net of Income Tax Expense of $160, $24, $213 and $138 for the respective periods||242||113||320||284|
|Average Number of Common Shares Outstanding:|
|Basic Earnings Per Common Share:|
|Diluted Earnings Per Common Share:|
|Otter Tail Corporation|
|Consolidated Balance Sheets|
|Cash and Cash Equivalents||$||16,216||$||--|
|Income Taxes Receivable||1,181||662|
|Total Current Assets||239,127||208,015|
|Electric Plant in Service||1,981,018||1,860,357|
|Construction Work in Progress||141,067||153,261|
|Total Gross Plant||2,339,022||2,225,444|
|Less Accumulated Depreciation and Amortization||799,419||748,219|
|Otter Tail Corporation|
|Consolidated Balance Sheets|
|Liabilities and Equity|
|Current Maturities of Long-Term Debt||186||33,201|
|Accrued Salaries and Wages||21,534||17,497|
|Other Accrued Liabilities||11,389||12,083|
|Liabilities of Discontinued Operations||492||1,363|
|Total Current Liabilities||256,653||215,671|
|Pensions Benefit Liability||109,708||97,627|
|Other Postretirement Benefits Liability||69,774||62,571|
|Other Noncurrent Liabilities||22,769||21,706|
|Deferred Income Taxes||100,501||226,591|
|Deferred Tax Credits||21,379||22,849|
|Total Deferred Credits||358,102||339,365|
|Cumulative Preferred Shares||--||--|
|Cumulative Preference Shares||--||--|
|Common Shares, Par Value $5 Per Share||197,787||196,741|
|Premium on Common Shares||343,450||337,684|
|Accumulated Other Comprehensive Loss||(5,631||)||(3,800||)|
|Total Common Equity||696,892||670,104|
|Otter Tail Corporation|
|Consolidated Statements of Cash Flows|
|For the Year Ended December 31,|
|Cash Flows from Operating Activities|
|Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:|
|Net Income from Discontinued Operations||(320||)||(284||)|
|Depreciation and Amortization||72,545||73,445|
|Deferred Tax Credits||(1,470||)||(1,657||)|
|Deferred Income Taxes||24,001||19,124|
|Change in Deferred Debits and Other Assets||(2,173||)||(10,090||)|
|Discretionary Contribution to Pension Plan||--||(10,000||)|
|Change in Noncurrent Liabilities and Deferred Credits||19,257||14,685|
|Allowance for Equity/Other Funds Used During Construction||(986||)||(857||)|
|Stock Compensation Expense – Equity Awards||3,642||3,178|
|Cash (Used for) Provided by Current Assets and Current Liabilities:|
|Change in Receivables||(2,135||)||(944||)|
|Change in Inventories||(4,294||)||1,874|
|Change in Other Current Assets||(3,060||)||(2,541||)|
|Change in Payables and Other Current Liabilities||(2,667||)||11,941|
|Change in Interest Payable and Income Taxes Receivable/Payable||(1,186||)||3,339|
|Net Cash Provided by Continuing Operations||173,603||163,541|
|Net Cash Used in Discontinued Operations||(26||)||(155||)|
|Net Cash Provided by Operating Activities||173,577||163,386|
|Cash Flows from Investing Activities|
|Proceeds from Disposal of Noncurrent Assets||4,491||4,837|
|Acquisition Purchase Price Cash Received||--||1,500|
|Cash Used for Investments and Other Assets||(4,168||)||(4,402||)|
|Net Cash Used in Investing Activities||(132,590||)||(159,324||)|
|Cash Flows from Financing Activities|
|Change in Checks Written in Excess of Cash||2,434||(3,363||)|
|Net Short-Term Borrowings (Repayments)||69,488||(37,789||)|
|Proceeds from Issuance of Common Stock – net of Issuance Expenses||4,349||43,873|
|Payments for Retirement of Capital Stock||(1,799||)||(104||)|
|Proceeds from Issuance of Long-Term Debt||--||130,000|
|Short-Term and Long-Term Debt Issuance Expenses||(380||)||(888||)|
|Payments for Retirement of Long-Term Debt||(48,231||)||(87,547||)|
|Dividends Paid and Other Distributions||(50,632||)||(48,244||)|
|Net Cash Used in Financing Activities||(24,771||)||(4,062||)|
|Net Change in Cash and Cash Equivalents||16,216||--|
|Cash and Cash Equivalents at Beginning of Period||--||--|
|Cash and Cash Equivalents at End of Period||$||16,216||$||--|
|Media contact:||Cris Oehler, Vice President, Corporate Communication, (218) 531-0099 or (866) 410-8780|
|Investor contact:||Loren Hanson, Manager of Investor Relations, (218) 739-8481 or (800) 664-1259|