FERGUS FALLS, Minn., Feb. 10, 2014 (GLOBE NEWSWIRE) -- Otter Tail Corporation (Nasdaq:OTTR) today announced financial results for the year ended December 31, 2013.
2013 Summary:
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 adjusting for certain one-time costs, such as debt prepayment premiums and presenting results on the basis of the expected future classification of continuing and discontinued operations 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 in accordance with GAAP.
CEO Overview
"Otter Tail Corporation posted strong financial results in the fourth quarter, with revenues up 10% and operating income up 19%. Moreover, this quarter coupled with our performance throughout 2013 resulted in a breakout year for Otter Tail Corporation. Disciplined execution of our strategy produced strong results both at Otter Tail Power Company and at the Varistar manufacturing and infrastructure companies and put us in a solid position for 2014," said Otter Tail Corporation President and CEO Jim McIntyre.
"Otter Tail Power Company continued to invest in environmental upgrades at its power plants and in regional transmission projects with other utilities. Construction of a new air-quality control system at Big Stone Plant was more than 25% complete at year-end with a stellar safety record and an 18% lower cost estimate compared with its original budget. Environmental cost recovery riders approved in Minnesota and North Dakota in December 2013 and implemented in January 2014 allow for Otter Tail Power Company to earn a return on funds invested in the project while it is under construction. Investment with other utilities in three CapX2020 transmission projects and two 345-kv projects deemed 'multi-value projects,' or MVPs, by the Midcontinent Independent System Operator (MISO) also are generating growth in our Electric segment.
"I am particularly pleased to report that all six Varistar manufacturing and infrastructure companies were profitable in 2013. The PVC pipe companies experienced their fourth best year in terms of net income. Foley dramatically improved margins by bidding and managing construction projects in more profitable industrial and commercial sectors. Aevenia's strong second half results offset impacts of adverse weather and project challenges in the first half of the year. And BTD Manufacturing and T.O. Plastics demonstrated strength in a still challenging market. I believe we have established a solid core of manufacturing competencies that will play an important role in our future.
"We also lowered our debt burden when we retired $48 million of debt in November 2013. This action improved our capital structure and better matched our balance sheet with our existing businesses following recent divestitures.
"These successes and actions validate our overarching strategy to enhance our financial stability, lower our risk profile, focus on operational excellence, and grow more predictably. Executing on that strategy in 2013 led us to earnings per share from continuing operations of $1.54 on a non-GAAP basis, excluding costs related to the early retirement of debt. That is an 18% improvement over the comparable $1.31 non-GAAP based earnings per share in 2012. In 2014 we see opportunity for further improvement in operational results at both platforms.
"Based on the strengths of our performance in 2013 and our outlook for 2014, the Board of Directors increased our indicated annualized dividend rate from $1.19 to $1.21 per common share. This further indicates the confidence in our ability to produce earnings to support the announced dividend while expecting to grow earnings at an average annual growth rate of 4% to 7%."
2013 Earnings from Continuing Operations Exceeded Expectations
The following table sets forth actual results against the corporation's most recent forecast for 2013 on a GAAP basis, and also shows 2013 and 2012 results on a non-GAAP basis, reflecting the effects of the early retirements of debt in 2013 and 2012.
2013 Earnings Per Share Guidance Range December 2, 2013 |
2013 Earnings |
2012 Earnings |
4Q 2013 Earnings |
4Q 2012 Earnings |
||
Low | High | Per Share | Per Share | Per Share | Per Share | |
Electric | $1.02 | $1.04 | $1.05 | $1.06 | $0.38 | $0.33 |
Manufacturing | $0.30 | $0.33 | $0.32 | $0.29 | $0.09 | $0.08 |
Plastics | $0.35 | $0.37 | $0.38 | $0.39 | $0.07 | $0.09 |
Construction | $0.03 | $0.05 | $0.04 | ($0.21) | $0.02 | ($0.01) |
Corporate – Recurring Costs | ($0.32) | ($0.29) | ($0.25) | ($0.22) | ($0.04) | ($0.02) |
Subtotal – Non-GAAP Basis1 | $1.38 | $1.50 | $1.54 | $1.31 | $0.52 | $0.47 |
Corporate – Loss on Debt Extinguishment | ($0.17) | ($0.17) | ($0.17) | ($0.22) | ($0.17) | |
Corporate – Interest on Debt Related to Discontinued Operations |
($0.04) |
|||||
Total – Continuing Operations - GAAP Basis | $1.21 | $1.33 | $1.37 | $1.05 | $0.35 | $0.47 |
1In November 2013 the corporation retired early $47.7 million of its previously outstanding $100 million 9.000% Notes due December 15, 2016 from available cash. In July 2012 the corporation retired early its $50 million, 8.89% Senior Unsecured Note due November 30, 2017 from proceeds generated in connection with the divestiture of DMI. Generally Accepted Accounting Principles require that in order for debt retirement premiums and related interest expense to be reported as discontinued operations, a company must be required by the lender to repay the related debt as a result of the disposition. Although the corporation was not legally obligated to repay the aforementioned $50 million note, management believes it is appropriate to associate the 2012 debt prepayment premium and interest expense with its discontinued operations to provide a better indication of future earnings. |
Cash Flow from Operations and Liquidity
The corporation's consolidated cash flow from continuing operations in 2013 was $150.6 million compared with $169.0 million in 2012. The corporation's consolidated cash used by discontinued operations in 2013 was $2.5 million, compared with cash provided by discontinued operations of $64.6 million in 2012. The corporation used funds on hand in November 2013 to retire early $47.7 million of its previously outstanding $100 million 9.000% Notes due December 15, 2016. This early retirement reduced the corporation's long-term debt outstanding and lowered its cost of capital, strengthened its consolidated capital structure and will have a positive effect on future years' earnings by lowering interest costs by $4.3 million in both 2014 and 2015 and $4.1 million in 2016.
The following table presents the status of the corporation's lines of credit as of December 31, 2013:
(in thousands) |
Line Limit |
In Use On December 31, 2013 |
Restricted due to Outstanding Letters of Credit |
Available on December 31, 2013 |
Otter Tail Corporation Credit Agreement | $ 150,000 | $ -- | $ 659 | $ 149,341 |
Otter Tail Power Company Credit Agreement | 170,000 | 51,195 | 1,830 | 116,975 |
Total | $ 320,000 | $ 51,195 | $ 2,489 | $ 266,316 |
2013 Segment Performance Summary
Electric
Electric revenues and net income were $373.5 million and $38.2 million, respectively, compared with $350.8 million and $38.3 million for 2012.
The following table shows Degree Days for the electric utility business as a percent of normal:
Year ended December 31, | Three Months ended December 31, | |||
2013 | 2012 | 2013 | 2012 | |
Heating Degree Days | 114.9% | 83.9% | 119.7% | 103.5% |
Cooling Degree Days | 113.7% | 141.2% | — | — |
Retail electric revenues increased $20.2 million as a result of:
Wholesale electric revenues from company-owned generation increased $1.9 million, despite a 1.1% decline in wholesale kwh sales, due to a 15.9% increase in the average wholesale price per kwh sold, which was driven by higher natural gas prices and increased wholesale market demand resulting from colder weather in 2013.
Net revenue from energy trading activities, including net mark-to-market gains on forward energy contracts, increased $0.2 million mainly as a result of an increase in unrealized mark-to-market gains on open energy contracts scheduled to settle in January and February of 2014.
Other electric operating revenues increased $0.5 million between the years, reflecting a $2.6 million increase in MISO tariff revenues related to increasing investments in regional transmission projects, mainly CapX2020 projects, offset by a $2.2 million reduction in revenue from shared use of transmission facilities with other regional transmission providers.
The $5.0 million increase in production fuel costs resulted from a 10.8% increase in kwhs generated from Otter Tail Power Company's steam-powered and combustion turbine generators, partially offset by a 3.0% reduction in the cost of fuel per kwh generated. The increase in kwh generation was facilitated by improved availability of all of Otter Tail Power Company's steam-powered generation units in 2013. The increase in generation was dedicated entirely to serving increased demand from Otter Tail Power Company's retail customers driven by colder weather in 2013. The cost of purchased power to serve retail customers increased $2.8 million, despite a 2.1% decrease in kwhs purchased, due to an 8.0% increase in costs per kwh purchased driven by increased demand and higher fuel prices for natural-gas fired generation.
Electric operating and maintenance expenses increased $12.3 million as a result of:
Electric segment depreciation expense increased $1.1 million mainly as a result of CapX2020 transmission lines being placed in service in 2013. Property taxes increased $0.6 million due to higher property value assessments in Minnesota and South Dakota.
Manufacturing
Manufacturing revenues and net income were $205.0 million and $11.5 million, respectively, compared with $209.0 million and $10.7 million for 2012.
Plastics
Plastics revenues and net income were $165.0 million and $13.8 million, respectively, compared with revenues of $150.5 million and net income of $14.1 million for 2012. The increase in revenues is the result of a 12.0% increase in pounds of polyvinyl chloride (PVC) pipe sold, partially offset by a 2.2% decrease in the price per pound of pipe sold. Sales volume increased as construction and housing markets continued to improve in the South Central and Southwest regions of the United States and construction activity increased in the North Central United States in the second half of 2013. Cost of goods sold increased by $16.4 million, mostly due to the increase in pounds of pipe sold, but also due to a 2.2% increase in the cost per pound of pipe sold related to higher PVC resin costs driven by high global demand and an increase in the cost of ethylene, a key ingredient in the production of PVC resin. A $2.0 million decrease in operating income in the Plastics segment was mostly offset by a $1.5 million reduction in interest costs due to lower borrowings outstanding between the years.
Construction
Construction segment revenues were $149.9 million and net income was $1.3 million in 2013 compared with revenues of $149.1 million and a net loss of $7.7 million for 2012.
Corporate
Corporate net-of-tax costs decreased $1.8 million between the years due to:
offset by:
Discontinued Operations
The financial position, results of operations and cash flows of the corporation's former waterfront equipment, wind tower manufacturing, health services, trucking and potato processing businesses are reported as discontinued operations in the corporation's consolidated financial statements provided at the end of this report. Following are summary presentations of the results of discontinued operations for the years ended December 31, 2013 and 2012:
For the Year Ended December 31, | ||
(in thousands) | 2013 | 2012 |
Operating Revenues | $ 2,016 | $ 233,059 |
Operating Expenses | 2,005 | 233,528 |
Asset Impairment Charge | -- | 53,320 |
Other Income | 479 | 272 |
Interest Expense | -- | 175 |
Income Tax Expense (Benefit) | 9 | (14,982) |
Income (Loss) from Operations | 481 | (38,710) |
Gain (Loss) on Disposition Before Taxes | 216 | (5,216) |
Income Tax Expense on Disposition | 6 | 315 |
Net Gain (Loss) on Disposition | 210 | (5,531) |
Net Income (Loss) | $ 691 | $ (44,241) |
Realigning the corporation's portfolio of businesses and refocusing its capital investment are important to reducing its risk profile, as well as better supporting its credit metrics, which enhances its ability to support the dividend and capitalize on available growth opportunities. The corporation may continue to pursue other opportunities for strategic realignment.
Fourth Quarter 2013 Consolidated Results
Operating revenues were $233.2 million compared with $212.6 million for the same quarter a year ago. Operating income was $28.7 million compared with $24.2 million for the fourth quarter of 2012.
Net income from continuing operations was $12.6 million compared with $17.1 million in the fourth quarter of 2012. Diluted earnings per share from continuing operations were $0.35 compared with $0.47 for the fourth quarter of 2012. Fourth quarter 2013 net income from continuing operations includes increases in net income from the corporation's Electric, Construction and Manufacturing segments of $2.0 million, $1.0 million and $0.3 million, respectively, offset by a $0.9 million reduction in fourth quarter net income from the Plastics segment. Corporate segment net income decreased $7.0 million, mainly as a result of the $6.2 million net-of-tax loss on the early retirement of $47.7 million of the corporation's 9.000% Notes due December 15, 2016.
Fourth quarter 2013 Electric segment net income exceeded the corporation's expectations by approximately $0.7 million as a result of higher-than-expected December retail kwh sales driven by extremely cold weather during the month when heating degree days were 29.5% above the norm for December. Fourth quarter net income from the Plastics segment was also better than expected as PVC pipe sales remained strong through the end of the year partially mitigating anticipated reductions in gross margins on PVC pipe sales.
Net income was $12.7 million compared with $3.0 million in the fourth quarter of 2012. Fourth quarter 2012 net income included net losses from discontinued operations of $14.1 million ($0.39 per diluted share). Diluted earnings per share were $0.35 compared with $0.08 for the fourth quarter of 2012.
2014 Business Outlook
The corporation anticipates 2014 diluted earnings per share to be in the range of $1.55 to $1.75. This guidance reflects the current mix of businesses owned by the corporation. It considers the cyclical nature of some of the corporation's businesses and reflects challenges, as well as the corporation's plans and strategies for improving future operating results. The corporation expects capital expenditures for 2014 to be $195 million compared with $164 million in 2013. Major projects contributing to the increase in planned expenditures are the new air quality control system (AQCS) under construction at Big Stone Plant and investments in several transmission projects for the Electric segment, including CapX2020 and MISO-designated MVPs that are expected to positively impact the corporation's earnings and provide an immediate return on capital.
Segment components of the corporation's 2014 earnings per share guidance range are as follows:
2013 EPS | 2014 EPS Guidance | ||
by Segment | Low | High | |
Electric | $1.05 | $1.19 | $1.23 |
Manufacturing | $0.32 | $0.29 | $0.33 |
Plastics | $0.38 | $0.25 | $0.29 |
Construction | $0.04 | $0.07 | $0.11 |
Corporate | ($0.25) | ($0.25) | ($0.21) |
Subtotal – Continuing Operations | $1.54 | $1.55 | $1.75 |
Corporate – Loss on Debt Extinguishment | ($0.17) | ||
Total – Continuing Operations | $1.37 | $1.55 | $1.75 |
Contributing to the corporation's earnings guidance for 2014 are the following items:
- Rider recovery increases, including environmental riders in Minnesota and North Dakota related to the Big Stone AQCS environmental upgrades while under construction, and
- A decrease in pension costs of approximately $2.0 million as a result of an increase in the discount rate from 4.5% to 5.3%, offset by
- An increase in interest costs as a result of $150 million of fixed rate long term debt being put in place in the first quarter of 2014 to finance the Big Stone Plant AQCS and transmission projects, and
- An increase in operating and maintenance costs primarily for increased labor and a planned outage for maintenance at Hoot Lake Plant.
- An increase at BTD due to increased order volume as a result of expanded relationships with customers in recreational vehicle, lawn and garden, industrial and commercial end markets BTD serves, offset by
- A decrease in earnings from T.O. Plastics due to a reduction in sales of a product the customer will be producing on its own in 2014.
- Backlog for the manufacturing companies of approximately $136 million for 2014 compared with $124 million one year ago.
The corporation reviews its portfolio of companies annually to see where additional opportunities exist to improve its risk profile, improve credit metrics and generate additional sources of cash to support the future capital expenditure plans of its Electric segment.
The following table shows our 2013 capital expenditures and 2014 through 2018 anticipated capital expenditures and electric utility average rate base:
(in millions) | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |
Capital Expenditures: | ||||||
Electric Segment: | ||||||
Transmission | $ 53 | $ 46 | $ 97 | $ 52 | $ 56 | |
Environmental | 82 | 61 | -- | -- | -- | |
Other | 37 | 38 | 44 | 45 | 46 | |
Total Electric Segment | $ 149 | $ 172 | $ 145 | $ 141 | $ 97 | $ 102 |
Manufacturing and Infrastructure Segments | 15 | 23 | 19 | 26 | 20 | 24 |
Total Capital Expenditures | $ 164 | $ 195 | $ 164 | $ 167 | $ 117 | $ 126 |
Total Electric Utility Average Rate Base | $ 885 | $ 991 | $1,062 | $1,120 | $1,152 |
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 2014 through 2018 timeframe.
CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on February 11, 2014, at 10:00 a.m. CT to discuss the company's financial and operating performance.
The presentation will be posted on the corporation's 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 necessary software that may be 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.
Risk Factors and Forward-Looking Statements that Could Affect Future Results
The information in this release includes certain forward-looking information, including 2014 expectations, made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Although the corporation believes its expectations are based on reasonable assumptions, actual results may differ materially from those expectations. The following factors, among others, could cause actual results for the corporation 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 the corporation files with the Securities and Exchange Commission.
About The Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing and infrastructure businesses consisting of its Manufacturing, Plastics and Construction segments. 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 three and twelve months ended December 31, 2013 and 2012 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. For a further discussion of other risk factors and cautionary statements, refer to reports the corporation files with the Securities and Exchange Commission.
Otter Tail Corporation | ||||
Consolidated Statements of Income | ||||
In thousands, except share and per share amounts | ||||
Quarter Ended December 31, |
Year-to-Date December 31, |
|||
2013 | 2012 | 2013 | 2012 | |
Operating Revenues by Segment | ||||
Electric | $ 103,385 | $ 93,235 | $ 373,540 | $ 350,765 |
Manufacturing | 52,715 | 49,874 | 204,997 | 208,965 |
Plastics | 36,137 | 31,935 | 164,957 | 150,517 |
Construction | 40,982 | 37,610 | 149,910 | 149,092 |
Corporate Revenue and Intersegment Eliminations | (17) | (22) | (91) | (100) |
Total Operating Revenues | 233,202 | 212,632 | 893,313 | 859,239 |
Operating Expenses | ||||
Fuel and Purchased Power | 34,338 | 32,343 | 123,254 | 115,468 |
Nonelectric Cost of Goods Sold (depreciation included below) | 105,213 | 95,264 | 416,687 | 417,138 |
Electric Operating and Maintenance Expense | 36,740 | 32,532 | 144,706 | 131,789 |
Nonelectric Operating and Maintenance Expense | 13,119 | 13,316 | 51,930 | 52,621 |
Asset Impairment Charge | -- | -- | -- | 432 |
Depreciation and Amortization | 15,091 | 15,024 | 59,885 | 59,764 |
Total Operating Expenses | 204,501 | 188,479 | 796,462 | 777,212 |
Operating Income (Loss) by Segment | ||||
Electric | 21,272 | 17,660 | 62,455 | 61,025 |
Manufacturing | 5,259 | 5,296 | 20,748 | 21,087 |
Plastics | 4,563 | 6,003 | 23,994 | 25,953 |
Construction | 1,062 | (1,018) | 2,616 | (12,274) |
Corporate | (3,455) | (3,788) | (12,962) | (13,764) |
Total Operating Income | 28,701 | 24,153 | 96,851 | 82,027 |
Interest Charges | 6,547 | 6,935 | 26,978 | 31,905 |
Loss on Early Retirement of Debt | 10,252 | -- | 10,252 | 13,106 |
Other Income | 1,138 | 1,806 | 4,096 | 4,085 |
Income Tax Expense – Continuing Operations | 430 | 1,933 | 13,543 | 2,133 |
Net Income (Loss) by Segment – Continuing Operations | ||||
Electric | 13,935 | 11,928 | 38,236 | 38,341 |
Manufacturing | 3,124 | 2,796 | 11,457 | 10,676 |
Plastics | 2,594 | 3,484 | 13,809 | 14,113 |
Construction | 594 | (437) | 1,310 | (7,689) |
Corporate | (7,637) | (680) | (14,638) | (16,473) |
Net Income from Continuing Operations | 12,610 | 17,091 | 50,174 | 38,968 |
Discontinued Operations | ||||
Income (Loss) - net of Income Tax Expense | ||||
of $44, $2,800, $9 and $6,231 for the respective periods | 53 | (7,489) | 481 | (6,603) |
Impairment Loss - net of Income Tax (Benefit) of $0, | ||||
($3,099), $0 and ($21,213) for the respective periods | -- | (4,648) | -- | (32,107) |
(Loss) Gain on Disposition - net of Income Tax Expense | ||||
of $0, $484, $6 and $315 for the respective periods | -- | (1,987) | 210 | (5,531) |
Net Income (Loss) from Discontinued Operations | 53 | (14,124) | 691 | (44,241) |
Total Net Income (Loss) | 12,663 | 2,967 | 50,865 | (5,273) |
Preferred Dividend Requirement and Other Adjustments | -- | 185 | 513 | 736 |
Balance for Common | $ 12,663 | $ 2,782 | $ 50,352 | $ (6,009) |
Average Number of Common Shares Outstanding: | ||||
Basic | 36,180,465 | 36,062,110 | 36,151,364 | 36,047,984 |
Diluted | 36,384,203 | 36,256,350 | 36,354,947 | 36,242,224 |
Basic Earnings (Loss) Per Common Share: | ||||
Continuing Operations (net of preferred dividend requirement) | $ 0.35 | $ 0.47 | $ 1.37 | $ 1.06 |
Discontinued Operations | -- | (0.39) | 0.02 | (1.23) |
$ 0.35 | $ 0.08 | $ 1.39 | $ (0.17) | |
Diluted Earnings (Loss) Per Common Share: | ||||
Continuing Operations (net of preferred dividend requirement) | $ 0.35 | $ 0.47 | $ 1.37 | $ 1.05 |
Discontinued Operations | -- | (0.39) | 0.02 | (1.22) |
$ 0.35 | $ 0.08 | $ 1.39 | $ (0.17) |
Otter Tail Corporation | ||
Consolidated Balance Sheets | ||
ASSETS | ||
in thousands | ||
December 31, | December 31, | |
2013 | 2012 | |
Current Assets | ||
Cash and Cash Equivalents | $ 1,150 | $ 52,362 |
Accounts Receivable: | ||
Trade—Net | 83,572 | 91,170 |
Other | 9,790 | 7,684 |
Inventories | 72,681 | 69,336 |
Deferred Income Taxes | 14,421 | 30,964 |
Unbilled Revenue | 18,157 | 15,701 |
Costs and Estimated Earnings in Excess of Billings | 4,063 | 3,663 |
Regulatory Assets | 17,940 | 25,499 |
Other | 7,747 | 8,161 |
Assets of Discontinued Operations | 38 | 19,092 |
Total Current Assets | 229,559 | 323,632 |
Investments | 9,362 | 9,471 |
Other Assets | 28,834 | 26,222 |
Goodwill | 38,971 | 38,971 |
Other Intangibles—Net | 13,328 | 14,305 |
Deferred Debits | ||
Unamortized Debt Expense | 4,188 | 5,529 |
Regulatory Assets | 83,730 | 134,755 |
Total Deferred Debits | 87,918 | 140,284 |
Plant | ||
Electric Plant in Service | 1,460,884 | 1,423,303 |
Nonelectric Operations | 194,872 | 186,094 |
Construction Work in Progress | 187,461 | 77,890 |
Total Gross Plant | 1,843,217 | 1,687,287 |
Less Accumulated Depreciation and Amortization | 676,201 | 637,835 |
Net Plant | 1,167,016 | 1,049,452 |
Total | $ 1,574,988 | $ 1,602,337 |
Otter Tail Corporation | ||
Consolidated Balance Sheets | ||
LIABILITIES AND EQUITY | ||
in thousands | ||
December 31, | December 31, | |
2013 | 2012 | |
Current Liabilities | ||
Short-Term Debt | $ 51,195 | $ -- |
Current Maturities of Long-Term Debt | 188 | 176 |
Accounts Payable | 113,457 | 88,406 |
Accrued Salaries and Wages | 19,903 | 20,571 |
Billings In Excess Of Costs and Estimated Earnings | 13,707 | 16,204 |
Accrued Taxes | 12,491 | 12,047 |
Derivative Liabilities | 11,782 | 18,234 |
Other Accrued Liabilities | 6,532 | 6,334 |
Liabilities of Discontinued Operations | 3,637 | 11,156 |
Total Current Liabilities | 232,892 | 173,128 |
Pensions Benefit Liability | 69,743 | 116,541 |
Other Postretirement Benefits Liability | 45,221 | 58,883 |
Other Noncurrent Liabilities | 25,209 | 22,244 |
Deferred Credits | ||
Deferred Income Taxes | 174,572 | 171,787 |
Deferred Tax Credits | 28,288 | 31,299 |
Regulatory Liabilities | 73,926 | 68,835 |
Other | 718 | 466 |
Total Deferred Credits | 277,504 | 272,387 |
Capitalization | ||
Long-Term Debt, Net of Current Maturities | 389,589 | 421,680 |
Cumulative Preferred Shares | -- | 15,500 |
Cumulative Preference Shares | -- | -- |
Common Equity | ||
Common Shares, Par Value $5 Per Share | 181,358 | 180,842 |
Premium on Common Shares | 255,759 | 253,296 |
Retained Earnings | 99,441 | 92,221 |
Accumulated Other Comprehensive Loss | (1,728) | (4,385) |
Total Common Equity | 534,830 | 521,974 |
Total Capitalization | 924,419 | 959,154 |
Total | $ 1,574,988 | $ 1,602,337 |
Otter Tail Corporation | ||
Consolidated Statements of Cash Flows | ||
For the Year Ended December 31, | ||
In thousands | 2013 | 2012 |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 50,865 | $ (5,273) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||
Net (Gain) Loss from Sale of Discontinued Operations | (210) | 5,531 |
Net (Income) Loss from Discontinued Operations | (481) | 38,710 |
Depreciation and Amortization | 59,885 | 59,764 |
Asset Impairment Charge | -- | 432 |
Premium Paid for Early Retirement of Long-Term Debt | 9,889 | 12,500 |
Deferred Tax Credits | (1,925) | (2,091) |
Deferred Income Taxes | 16,201 | 11,459 |
Change in Deferred Debits and Other Assets | 56,720 | (4,802) |
Discretionary Contribution to Pension Plan | (10,000) | (10,000) |
Change in Noncurrent Liabilities and Deferred Credits | (42,226) | 32,718 |
Allowance for Equity (Other) Funds Used During Construction | (1,823) | (1,168) |
Change in Derivatives Net of Regulatory Deferral | 8 | 718 |
Stock Compensation Expense – Equity Awards | 1,456 | 1,311 |
Other—Net | 641 | 4,500 |
Cash Provided by (Used for) Current Assets and Current Liabilities: | ||
Change in Receivables | 8,335 | 2,430 |
Change in Inventories | (3,345) | (687) |
Change in Other Current Assets | (4,216) | 7,019 |
Change in Payables and Other Current Liabilities | 11,321 | 30,056 |
Change in Interest Payable and Income Taxes Receivable/Payable | (513) | (14,141) |
Net Cash Provided by Continuing Operations | 150,582 | 168,986 |
Net Cash (Used in) Provided by Discontinued Operations | (2,502) | 64,561 |
Net Cash Provided by Operating Activities | 148,080 | 233,547 |
Cash Flows from Investing Activities | ||
Capital Expenditures | (164,463) | (115,762) |
Proceeds from Disposal of Noncurrent Assets | 3,764 | 4,889 |
Net Increase in Other Investments | (1,845) | (1,037) |
Net Cash Used in Investing Activities - Continuing Operations | (162,544) | (111,910) |
Net Proceeds from Sale of Discontinued Operations | 12,842 | 42,229 |
Net Cash Provided by (Used in) Investing Activities - Discontinued Operations | 505 | (13,896) |
Net Cash Used in Investing Activities | (149,197) | (83,577) |
Cash Flows from Financing Activities | ||
Net Short-Term Borrowings | 51,195 | -- |
Proceeds from Issuance of Common Stock | 1,522 | -- |
Common Stock Issuance Expenses | (3) | (370) |
Payments for Retirement of Capital Stock | (15,723) | (111) |
Proceeds from Issuance of Long-Term Debt | 40,900 | -- |
Short-Term and Long-Term Debt Issuance Expenses | (522) | (897) |
Payments for Retirement of Long-Term Debt | (72,981) | (50,224) |
Premium Paid for Early Retirement of Long-Term Debt | (9,889) | (12,500) |
Dividends Paid and Other Distributions | (43,818) | (43,976) |
Net Cash Used in Financing Activities - Continuing Operations | (49,319) | (108,078) |
Net Cash Used in Financing Activities - Discontinued Operations | -- | (4,278) |
Net Cash Used in Financing Activities | (49,319) | (112,356) |
Net Change in Cash and Cash Equivalents – Discontinued Operations | (776) | (1,246) |
Net Change in Cash and Cash Equivalents | (51,212) | 36,368 |
Cash and Cash Equivalents at Beginning of Period | 52,362 | 15,994 |
Cash and Cash Equivalents at End of Period | $ 1,150 | $ 52,362 |