FERGUS FALLS, Minn.–(BUSINESS WIRE)–Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2024.
SUMMARY
- Diluted earnings per share increased 6% to $2.07 per share compared to the second quarter of 2023.
- Midpoint of 2024 earnings guidance increased 8% to $6.92 per share, or a return on equity of 18.7%.
- Received approval from the Minnesota Public Utilities Commission on Integrated Resource Plan.
CEO OVERVIEW
“We are pleased with our second quarter financial results,” said President and CEO Chuck MacFarlane, “as our team members continue to perform well amid changing market conditions. Plastics segment earnings increased 9 percent compared to the second quarter of 2023 due to higher sales volumes driven by customer sales volume growth and improved end market demand, partially offset by lower sales prices. Manufacturing segment earnings increased 15 percent, primarily driven by higher margins at BTD Manufacturing, partially offset by lower sales volumes. Electric segment earnings decreased 6 percent from the same time last year due to the impact of unfavorable weather.
“In May, Otter Tail Power received approval from the Minnesota Public Utilities Commission on its Integrated Resource Plan. The decision authorizes the addition of 200 to 300 megawatts of solar generation by 2027, and 150 to 200 megawatts of wind generation and 20 to 75 megawatts of battery storage by 2029. Otter Tail Power also received approval to designate the Minnesota portion of Coyote Station as an emergency-only resource starting as early as 2026, retaining the reliability benefits from the facility while simultaneously reducing its output and emissions.
“The process to receive final approval of our Integrated Resource Plan was complicated by changing energy policy and environmental regulation impacting the power system and changing market conditions in MISO influencing our preferred plan since our initial filing in 2021. I am grateful to our team members and the other parties to the docket for reaching a favorable outcome that helps to preserve reliability while we continue transitioning to cleaner energy.
“Despite our strong quarterly financial results within the Manufacturing segment, we continue to face end market demand related headwinds and anticipate conditions to soften further in the second half of 2024. We will continue to take action to manage costs and mitigate the impact of lower sales volumes.
“Our Plastics segment continues to perform exceptionally well, capitalizing on customer sales volume growth and distributor and end market demand. The sales price of PVC pipe continues to decline but at a slower rate than what we originally anticipated.
“We are increasing our 2024 diluted earnings per share guidance to a range of $6.77 to $7.07 from our previous range of $6.23 to $6.53 primarily due to continued strength within the Plastics segment.”
QUARTERLY DIVIDEND
On August 5, 2024, the corporation’s Board of Directors declared a quarterly common stock dividend of $0.4675 per share. This dividend is payable September 10, 2024 to shareholders of record on August 15, 2024.
CASH FLOWS AND LIQUIDITY
Our consolidated cash provided by operating activities for the six months ended June 30, 2024 was $223.5 million compared to $184.5 million for the six months ended June 30, 2023, with the increase primarily due to increased earnings from our Plastics segment.
Investing activities for the six months ended June 30, 2024 included capital expenditures of $175.5 million and the purchase of long-term marketable securities of $50.1 million. Capital expenditures during the period were largely within our Electric segment, including investments in our wind repowering and advanced metering infrastructure projects, but also included continued investments in our manufacturing facility expansion projects in Arizona and Georgia. Financing activities for the six months ended June 30, 2024 included the issuance of $120.0 million of long-term debt at Otter Tail Power; the proceeds of which were used to repay short-term borrowings, fund capital investments, and support operating activities. Financing activities for the six months ended June 30, 2024 also included dividend payments of $39.1 million.
As of June 30, 2024, we had $170.0 million and $148.1 million of available liquidity under our Otter Tail Corporation and Otter Tail Power Credit Agreements, respectively, along with $230.7 million of available cash and cash equivalents, for total available liquidity of $548.7 million.
SEGMENT PERFORMANCE
Electric Segment
|
|
Three Months Ended June 30, |
|
|
|
|
|||||||||
|
($ in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|||
|
Operating Revenues |
$ |
112,828 |
|
$ |
113,763 |
|
$ |
(935 |
) |
|
(0.8 |
)% |
||
|
Net Income |
|
18,485 |
|
|
|
19,634 |
|
|
|
(1,149 |
) |
|
(5.9 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Retail MWh Sales |
|
1,315,504 |
|
|
|
1,345,830 |
|
|
|
(30,326 |
) |
|
(2.3 |
)% |
|
Heating Degree Days |
|
372 |
|
|
|
639 |
|
|
|
(267 |
) |
|
(41.8 |
) |
|
Cooling Degree Days |
|
61 |
|
|
|
254 |
|
|
|
(193 |
) |
|
(76.0 |
) |
The following table shows heating degree days (HDDs) and cooling degree days (CDDs) as a percent of normal.
|
|
Three Months Ended June 30, |
||||
|
|
2024 |
|
|
2023 |
|
|
HDDs |
68.8 |
% |
|
120.6 |
% |
|
CDDs |
48.8 |
% |
|
215.3 |
% |
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 for the three months ended June 30, 2024 and 2023.
|
|
2024 vs Normal |
|
2024 vs 2023 |
|
2023 vs Normal |
||||||
|
Effect on Diluted Earnings Per Share |
$ |
(0.03 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.04 |
|
Operating Revenues decreased $0.9 million primarily due to a decrease in retail revenue from the impact of unfavorable weather, as well as decreased transmission revenue. During the second quarter last year updates were made to estimated project costs for certain transmission projects and previously estimated recovery amounts for annual operating expenses were finalized which resulted in a nonrecurring increase in revenue during the period. The impact of unfavorable weather and decreases in transmission revenues were partially offset by an increase in retail revenues due to an interim rate increase in North Dakota in connection with our rate case filed in November 2023, increased fuel recovery revenues, and increased commercial and industrial sales.
Net Income decreased $1.1 million primarily due to the impact of unfavorable weather, as described above, partially offset by decreased operating and maintenance expenses, the interim rate increase in North Dakota, and increased commercial and industrial sales.
Manufacturing Segment
|
|
Three Months Ended June 30, |
|
|
|
|
|||||||||
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
|||
|
Operating Revenues |
$ |
96,684 |
|
$ |
102,475 |
|
$ |
(5,791 |
) |
|
(5.7 |
)% |
||
|
Net Income |
|
6,835 |
|
|
|
5,969 |
|
|
|
866 |
|
|
14.5 |
|
Operating Revenues decreased $5.8 million primarily due to decreased sales volumes at both of our manufacturing businesses, with an overall sales volume decrease of 13% compared to the same period last year. At BTD Manufacturing, our contract metal fabricator, sales volumes declined primarily in the lawn and garden and agriculture end markets. A 31% decline in scrap metal revenues also contributed to the overall decrease in operating revenues. Decreased sales volumes and scrap revenues were partially offset by increased steel prices, resulting in a 5% increase in material costs, which are passed through to customers. At T.O. Plastics, our plastics thermoforming manufacturer, sales volume declines were primarily attributable to decreased sales of horticulture products as customers and distributors continued to reduce inventory levels from the high levels previously established due to supply chain challenges.
Net Income increased $0.9 million primarily due to increased margins at BTD Manufacturing driven by a positive impact from the timing of pass-through steel cost fluctuations and the selling of lower cost inventory, as well as favorable product mix compared to the same period last year. These positive impacts were partially offset by lower sales volumes and lower scrap sales, as described above. Decreased profit margins at T.O. Plastics driven by a reduced leverage of fixed manufacturing costs resulting from decreased production and sales volumes, as described above, also partially offset the overall increase in earnings compared to the same period last year.
Plastics Segment
|
|
Three Months Ended June 30, |
|
|
|
|
|||||||||
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
|||
|
Operating Revenues |
$ |
132,824 |
|
$ |
121,478 |
|
$ |
11,346 |
|
9.3 |
% |
|||
|
Net Income |
|
60,612 |
|
|
|
55,392 |
|
|
|
5,220 |
|
|
9.4 |
|
Operating Revenues increased $11.3 million primarily due to a 26% increase in sales volumes driven by customer sales volume growth and distributor and end market demand. Sales volumes in the second quarter of last year were negatively impacted by distributors’ inventory management strategies amid uncertain market conditions. Although demand has recovered from last year, sales prices have continued to decline. Sales prices decreased 13% compared to the same period last year, partially offsetting the impact of increased sales volumes.
Net Income increased $5.2 million primarily due to increased sales volumes, as described above. Resin and other input material costs decreased 14% compared to the same period last year and have remained relatively stable during the first half of the year.
Corporate
|
|
Three Months Ended June 30, |
|
|
|
|
|||||||||
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
|||
|
Net Income |
$ |
1,063 |
|
$ |
974 |
|
$ |
89 |
|
9.1 |
% |
|||
2024 BUSINESS OUTLOOK
We are increasing our 2024 diluted earnings per share range to $6.77 to $7.07. We expect our earnings mix in 2024, based on our updated guidance, to be approximately 31% from our Electric segment and 69% from our Manufacturing and Plastics segments, net of corporate costs.
The segment components of our 2024 diluted earnings per share guidance compared with actual earnings for 2023 are as follows:
|
|
|
|
|
|
2024 EPS Guidance |
|
2024 EPS Guidance |
||||||||||||||
|
|
|
|
2023 EPS by Segment |
|
May 6, 2024 |
|
August 5, 2024 |
||||||||||||||
|
|
|
|
Low |
|
High |
|
Low |
|
High |
||||||||||||
|
Electric |
|
|
$ |
2.01 |
|
|
$ |
2.13 |
|
|
$ |
2.17 |
|
|
$ |
2.13 |
|
|
$ |
2.17 |
|
|
Manufacturing |
|
|
|
0.51 |
|
|
|
0.45 |
|
|
|
0.49 |
|
|
|
0.36 |
|
|
|
0.40 |
|
|
Plastics |
|
|
|
4.47 |
|
|
|
3.78 |
|
|
|
3.97 |
|
|
|
4.35 |
|
|
|
4.54 |
|
|
Corporate |
|
|
|
0.01 |
|
|
|
(0.13 |
) |
|
|
(0.10 |
) |
|
|
(0.07 |
) |
|
|
(0.04 |
) |
|
Total |
|
|
$ |
7.00 |
|
|
$ |
6.23 |
|
|
$ |
6.53 |
|
|
$ |
6.77 |
|
|
$ |
7.07 |
|
|
Return on Equity |
|
|
|
22.1 |
% |
|
|
17.1 |
% |
|
|
17.8 |
% |
|
|
18.3 |
% |
|
|
19.0 |
% |
The following items contribute to our revised 2024 earnings guidance:
Electric Segment – We are maintaining our guidance, expecting earnings to increase 7% over 2023.
Manufacturing Segment – We are decreasing our segment earnings guidance based on:
- Anticipated lower sales volumes as end market demand softens, primarily within the recreational vehicle, agriculture, construction and horticulture markets, and
- Declining operating margins as lower production and sales volumes negatively impact leverage of our fixed manufacturing costs.
Plastics Segment – We are increasing our segment earnings guidance based on:
- Better than expected financial results in the second quarter of 2024, and
- A slower decline in product sales prices than previously expected over the second half of 2024.
Corporate Costs – We are reducing our corporate cost estimate primarily due to an increase in expected income on our cash equivalent investments from a higher anticipated yield and an increase in invested funds driven by an increase in expected earnings and cash flows from our Plastics segment.
CONFERENCE CALL AND WEBCAST
The corporation will host a live webcast on Tuesday, August 6, 2024, 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 and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.
If you are interested in asking a question during the live webcast, visit and follow the link provided in the press release announcing the upcoming conference call.
FORWARD-LOOKING STATEMENTS
Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “future,” “goal,” “intend,” “likely,” “may,” “outlook,” “plan,” “possible,” “potential,” “predict,” “probable,” “projected,” “should,” “target,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which may include statements regarding 2024 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future raw materials availability and supply constraints, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of future investments and capital expenditures, rate base levels and rate base growth, risks associated with energy markets, the availability and pricing of resource materials, inflationary cost pressures, attracting and maintaining a qualified and stable workforce, changing macroeconomic and industry conditions that impact the demand for our products, pricing and margin, long-term investment risk, seasonal weather patterns and extreme weather events, counterparty credit risk, future business volumes with key customers, reductions in our credit ratings, our ability to access capital markets on favorable terms, assumptions and costs relating to funding our employee benefit plans, our subsidiaries’ ability to make dividend payments, cybersecurity threats or data breaches, the impact of government legislation and regulation including foreign trade policy and environmental, health and safety laws and regulations, changes in tax laws and regulations, the impact of climate change including compliance with legislative and regulatory changes to address climate change, expectations regarding regulatory proceedings, including state utility commission approval of resource plans, assigned service areas, the siting and construction of major facilities, capital structure, and allowed customer rates, and operational and economic risks associated with our electric generating and manufacturing facilities. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.
Category: Earnings
About the Corporation: Otter Tail Corporation, a member of the S&P SmallCap 600 Index, 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 in Fergus Falls, Minnesota, and Fargo, North Dakota.
|
OTTER TAIL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (unaudited)
|
|||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
(in thousands, except per-share amounts) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating Revenues |
|
|
|
|
|
|
|
||||||||
|
Electric |
$ |
112,828 |
|
|
$ |
113,763 |
|
|
$ |
254,317 |
|
|
$ |
265,671 |
|
|
Product Sales |
|
229,508 |
|
|
|
223,953 |
|
|
|
435,087 |
|
|
|
411,126 |
|
|
Total Operating Revenues |
|
342,336 |
|
|
|
337,716 |
|
|
|
689,404 |
|
|
|
676,797 |
|
|
Operating Expenses |
|
|
|
|
|
|
|
||||||||
|
Electric Production Fuel |
|
12,324 |
|
|
|
14,833 |
|
|
|
30,018 |
|
|
|
26,326 |
|
|
Electric Purchased Power |
|
9,249 |
|
|
|
5,212 |
|
|
|
31,771 |
|
|
|
47,037 |
|
|
Electric Operating and Maintenance Expense |
|
44,652 |
|
|
|
45,522 |
|
|
|
92,630 |
|
|
|
91,070 |
|
|
Cost of Products Sold (excluding depreciation) |
|
116,795 |
|
|
|
120,658 |
|
|
|
231,518 |
|
|
|
233,027 |
|
|
Nonelectric Selling, General, and Administrative Expenses |
|
18,154 |
|
|
|
16,870 |
|
|
|
37,067 |
|
|
|
35,568 |
|
|
Depreciation and Amortization |
|
26,632 |
|
|
|
24,232 |
|
|
|
52,528 |
|
|
|
48,089 |
|
|
Electric Property Taxes |
|
3,619 |
|
|
|
4,336 |
|
|
|
7,986 |
|
|
|
8,957 |
|
|
Total Operating Expenses |
|
231,425 |
|
|
|
231,663 |
|
|
|
483,518 |
|
|
|
490,074 |
|
|
Operating Income |
|
110,911 |
|
|
|
106,053 |
|
|
|
205,886 |
|
|
|
186,723 |
|
|
Other Income and (Expense) |
|
|
|
|
|
|
|
||||||||
|
Interest Expense |
|
(10,202 |
) |
|
|
(9,696 |
) |
|
|
(20,052 |
) |
|
|
(19,111 |
) |
|
Nonservice Components of Postretirement Benefits |
|
2,388 |
|
|
|
2,421 |
|
|
|
4,830 |
|
|
|
4,833 |
|
|
Other Income (Expense), net |
|
4,490 |
|
|
|
3,253 |
|
|
|
9,069 |
|
|
|
5,370 |
|
|
Income Before Income Taxes |
|
107,587 |
|
|
|
102,031 |
|
|
|
199,733 |
|
|
|
177,815 |
|
|
Income Tax Expense |
|
20,592 |
|
|
|
20,062 |
|
|
|
38,400 |
|
|
|
33,365 |
|
|
Net Income |
$ |
86,995 |
|
|
$ |
81,969 |
|
|
$ |
161,333 |
|
|
$ |
144,450 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted-Average Common Shares Outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
41,784 |
|
|
|
41,678 |
|
|
|
41,754 |
|
|
|
41,655 |
|
|
Diluted |
|
42,068 |
|
|
|
42,053 |
|
|
|
42,051 |
|
|
|
42,035 |
|
|
Earnings Per Share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
2.08 |
|
|
$ |
1.97 |
|
|
$ |
3.86 |
|
|
$ |
3.47 |
|
|
Diluted |
$ |
2.07 |
|
|
$ |
1.95 |
|
|
$ |
3.84 |
|
|
$ |
3.44 |
|
|
OTTER TAIL CORPORATION CONSOLIDATED BALANCE SHEETS (unaudited)
|
|||||||
|
|
June 30, |
|
December 31, |
||||
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Assets |
|
|
|
||||
|
Current Assets |
|
|
|
||||
|
Cash and Cash Equivalents |
$ |
230,672 |
|
$ |
230,373 |
||
|
Receivables, net of allowance for credit losses |
|
191,946 |
|
|
|
157,143 |
|
|
Inventories |
|
161,787 |
|
|
|
149,701 |
|
|
Regulatory Assets |
|
8,172 |
|
|
|
16,127 |
|
|
Other Current Assets |
|
21,551 |
|
|
|
16,826 |
|
|
Total Current Assets |
|
614,128 |
|
|
|
570,170 |
|
|
Noncurrent Assets |
|
|
|
||||
|
Investments |
|
117,062 |
|
|
|
62,516 |
|
|
Property, Plant and Equipment, net of accumulated depreciation |
|
2,538,841 |
|
|
|
2,418,375 |
|
|
Regulatory Assets |
|
95,605 |
|
|
|
95,715 |
|
|
Intangible Assets, net of accumulated amortization |
|
6,293 |
|
|
|
6,843 |
|
|
Goodwill |
|
37,572 |
|
|
|
37,572 |
|
|
Other Noncurrent Assets |
|
51,282 |
|
|
|
51,377 |
|
|
Total Noncurrent Assets |
|
2,846,655 |
|
|
|
2,672,398 |
|
|
Total Assets |
$ |
3,460,783 |
|
|
$ |
3,242,568 |
|
|
|
|
|
|
||||
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
|
Current Liabilities |
|
|
|
||||
|
Short-Term Debt |
$ |
12,809 |
|
|
$ |
81,422 |
|
|
Accounts Payable |
|
126,926 |
|
|
|
94,428 |
|
|
Accrued Salaries and Wages |
|
25,972 |
|
|
|
38,134 |
|
|
Accrued Taxes |
|
20,608 |
|
|
|
26,590 |
|
|
Regulatory Liabilities |
|
45,183 |
|
|
|
25,408 |
|
|
Other Current Liabilities |
|
39,454 |
|
|
|
43,775 |
|
|
Total Current Liabilities |
|
270,952 |
|
|
|
309,757 |
|
|
Noncurrent Liabilities and Deferred Credits |
|
|
|
||||
|
Pensions Benefit Liability |
|
32,781 |
|
|
|
33,101 |
|
|
Other Postretirement Benefits Liability |
|
27,759 |
|
|
|
27,676 |
|
|
Regulatory Liabilities |
|
275,068 |
|
|
|
276,547 |
|
|
Deferred Income Taxes |
|
249,489 |
|
|
|
237,273 |
|
|
Deferred Tax Credits |
|
14,799 |
|
|
|
15,172 |
|
|
Other Noncurrent Liabilities |
|
80,691 |
|
|
|
75,977 |
|
|
Total Noncurrent Liabilities and Deferred Credits |
|
680,587 |
|
|
|
665,746 |
|
|
Commitments and Contingencies |
|
|
|
||||
|
Capitalization |
|
|
|
||||
|
Long-Term Debt |
|
943,592 |
|
|
|
824,059 |
|
|
Shareholders’ Equity |
|
|
|
||||
|
Common Shares |
|
209,072 |
|
|
|
208,553 |
|
|
Additional Paid-In Capital |
|
427,264 |
|
|
|
426,963 |
|
|
Retained Earnings |
|
928,553 |
|
|
|
806,342 |
|
|
Accumulated Other Comprehensive Income |
|
763 |
|
|
|
1,148 |
|
|
Total Shareholders’ Equity |
|
1,565,652 |
|
|
|
1,443,006 |
|
|
Total Capitalization |
|
2,509,244 |
|
|
|
2,267,065 |
|
|
Total Liabilities and Shareholders’ Equity |
$ |
3,460,783 |
|
|
$ |
3,242,568 |
|
|
OTTER TAIL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|||||||
|
|
Six Months Ended June 30, |
||||||
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
Operating Activities |
|
|
|
||||
|
Net Income |
$ |
161,333 |
|
|
$ |
144,450 |
|
|
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: |
|
|
|
||||
|
Depreciation and Amortization |
|
52,528 |
|
|
|
48,089 |
|
|
Deferred Tax Credits |
|
(372 |
) |
|
|
(372 |
) |
|
Deferred Income Taxes |
|
9,492 |
|
|
|
8,708 |
|
|
Investment Gains |
|
(3,111 |
) |
|
|
(4,295 |
) |
|
Stock Compensation Expense |
|
6,824 |
|
|
|
6,484 |
|
|
Other, net |
|
(1,251 |
) |
|
|
161 |
|
|
Change in Operating Assets and Liabilities: |
|
|
|
||||
|
Receivables |
|
(34,803 |
) |
|
|
(50,558 |
) |
|
Inventories |
|
(11,551 |
) |
|
|
2,396 |
|
|
Regulatory Assets |
|
7,361 |
|
|
|
7,320 |
|
|
Other Assets |
|
(3,951 |
) |
|
|
3,561 |
|
|
Accounts Payable |
|
41,239 |
|
|
|
1,037 |
|
|
Accrued and Other Liabilities |
|
(19,312 |
) |
|
|
(4,271 |
) |
|
Regulatory Liabilities |
|
23,863 |
|
|
|
27,169 |
|
|
Pension and Other Postretirement Benefits |
|
(4,828 |
) |
|
|
(5,382 |
) |
|
Net Cash Provided by Operating Activities |
|
223,461 |
|
|
|
184,497 |
|
|
Investing Activities |
|
|
|
||||
|
Capital Expenditures |
|
(175,528 |
) |
|
|
(151,516 |
) |
|
Proceeds from Disposal of Noncurrent Assets |
|
5,124 |
|
|
|
2,970 |
|
|
Purchases of Investments and Other Assets |
|
(57,661 |
) |
|
|
(5,079 |
) |
|
Net Cash Used in Investing Activities |
|
(228,065 |
) |
|
|
(153,625 |
) |
|
Financing Activities |
|
|
|
||||
|
Net Borrowings (Repayments) on Short-Term Debt |
|
(68,612 |
) |
|
|
41,993 |
|
|
Proceeds from Issuance of Long-Term Debt |
|
120,000 |
|
|
|
— |
|
|
Dividends Paid |
|
(39,122 |
) |
|
|
(36,524 |
) |
|
Payments for Shares Withheld for Employee Tax Obligations |
|
(5,753 |
) |
|
|
(3,088 |
) |
|
Other, net |
|
(1,610 |
) |
|
|
(1,671 |
) |
|
Net Cash Provided by Financing Activities |
|
4,903 |
|
|
|
710 |
|
|
Net Change in Cash and Cash Equivalents |
|
299 |
|
|
|
31,582 |
|
|
Cash and Cash Equivalents at Beginning of Period |
|
230,373 |
|
|
|
118,996 |
|
|
Cash and Cash Equivalents at End of Period |
$ |
230,672 |
|
|
$ |
150,578 |
|
|
OTTER TAIL CORPORATION SEGMENT RESULTS (unaudited)
|
|||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Operating Revenues |
|
|
|
|
|
|
|
||||||||
|
Electric |
$ |
112,828 |
|
|
$ |
113,763 |
|
|
$ |
254,317 |
|
|
$ |
265,671 |
|
|
Manufacturing |
|
96,684 |
|
|
|
102,475 |
|
|
|
196,065 |
|
|
|
209,257 |
|
|
Plastics |
|
132,824 |
|
|
|
121,478 |
|
|
|
239,022 |
|
|
|
201,869 |
|
|
Total Operating Revenues |
$ |
342,336 |
|
|
$ |
337,716 |
|
|
$ |
689,404 |
|
|
$ |
676,797 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Operating Income (Loss) |
|
|
|
|
|
|
|
||||||||
|
Electric |
$ |
22,597 |
|
|
$ |
25,188 |
|
|
$ |
51,639 |
|
|
$ |
55,284 |
|
|
Manufacturing |
|
9,600 |
|
|
|
8,320 |
|
|
|
17,014 |
|
|
|
17,829 |
|
|
Plastics |
|
82,089 |
|
|
|
75,035 |
|
|
|
145,392 |
|
|
|
120,718 |
|
|
Corporate |
|
(3,375 |
) |
|
|
(2,490 |
) |
|
|
(8,159 |
) |
|
|
(7,108 |
) |
|
Total Operating Income |
$ |
110,911 |
|
|
$ |
106,053 |
|
|
$ |
205,886 |
|
|
$ |
186,723 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net Income (Loss) |
|
|
|
|
|
|
|
||||||||
|
Electric |
$ |
18,485 |
|
|
$ |
19,634 |
|
|
$ |
40,956 |
|
|
$ |
42,854 |
|
|
Manufacturing |
|
6,835 |
|
|
|
5,969 |
|
|
|
12,096 |
|
|
|
12,831 |
|
|
Plastics |
|
60,612 |
|
|
|
55,392 |
|
|
|
107,350 |
|
|
|
89,078 |
|
|
Corporate |
|
1,063 |
|
|
|
974 |
|
|
|
931 |
|
|
|
(313 |
) |
|
Total Net Income |
$ |
86,995 |
|
|
$ |
81,969 |
|
|
$ |
161,333 |
|
|
$ |
144,450 |
|
Contacts
Media Contact: Stephanie Hoff, Director of Corporate Communications, (218) 739-8535
Investor Contact: Beth Eiken, Manager of Investor Relations, (701) 451-3571
