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Industrial Power Sales Climb 3.4 Percent; ALLETE Reaffirms Guidance

Stocks in this article: ALE

ALLETE will host a conference call and webcast at 10 a.m. Eastern time today to discuss details of its quarterly financial performance. Interested parties may listen live by calling (877) 303-5852, or by accessing the webcast at www.allete.com. A replay of the call will be available through Aug. 4, 2012 by calling (855) 859-2056, pass code 96261080.

ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota. ALLETE's energy businesses include Minnesota Power, Superior Water, Light & Power Co., BNI Coal, and ALLETE Clean Energy. More information about the company is available at www.allete.com.

The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.

ALLETE’s press releases and other communications may include certain non-Generally Accepted Accounting Principles (GAAP) financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance, financial position or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in the company’s financial statements.

Non-GAAP financial measures utilized by the Company include presentations of earnings (loss) per share. ALLETE’s management believes that these non-GAAP financial measures provide useful information to investors by removing the effect of variances in GAAP reported results of operations that are not indicative of changes in the fundamental earnings power of the Company’s operations. Management believes that the presentation of the non-GAAP financial measures is appropriate and enables investors and analysts to more accurately compare the company’s ongoing financial performance over the periods presented.

 
 
ALLETE, Inc.
Consolidated Statement of Income

Millions Except Per Share Amounts – Unaudited

 
    Quarter Ended     Six Months Ended
June 30, June 30,
      2012     2011     2012     2011
Operating Revenue     $ 216.4       $ 219.9       $ 456.4       $ 462.1  
       
Operating Expenses
Fuel and Purchased Power 72.1 76.0 149.2 155.0
Operating and Maintenance 96.2 95.7 196.1 185.8
Depreciation       24.8         22.1         49.4         44.4  
Total Operating Expenses 193.1 193.8 394.7 385.2
 
Operating Income       23.3         26.1         61.7         76.9  
 
Other Income (Expense)
Interest Expense (10.1 ) (11.0 ) (21.1 ) (21.7 )
Equity Earnings in ATC 4.8 4.6 9.4 9.0
Other       1.2         1.0         1.9         1.8  
Total Other Expense       (4.1 )       (5.4 )       (9.8 )       (10.9 )
 
Income Before Non-Controlling Interest and Income Taxes 19.2 20.7 51.9 66.0
Income Tax Expense       4.8         3.8         13.1         12.0  
Net Income       14.4         16.9         38.8         54.0  
Less: Non-Controlling Interest in Subsidiaries               (0.1 )               (0.2 )
Net Income Attributable to ALLETE     $ 14.4       $ 17.0       $ 38.8       $ 54.2  
 
Average Shares of Common Stock
Basic 37.3 35.0 37.0 34.8
Diluted       37.4         35.1         37.1         34.9  
 
Basic Earnings Per Share of Common Stock $ 0.39 $ 0.49 $ 1.05 $ 1.56
Diluted Earnings Per Share of Common Stock $ 0.39 $ 0.48 $ 1.05 $ 1.55
 
Dividends Per Share of Common Stock     $ 0.46       $ 0.445       $ 0.92       $ 0.89  
 
 
Consolidated Balance Sheet

Millions – Unaudited

 
    June 30,     Dec. 31,           June 30,     Dec. 31,
      2012     2011             2012     2011
Assets Liabilities and Shareholders' Equity
Cash and Short-Term
Investments $ 8.6 $ 101.1 Current Liabilities $ 232.4 $ 163.1
Other Current Assets 161.5 175.9 Long-Term Debt 808.4 857.9
Property, Plant and Equipment 2,177.5 1,982.7 Deferred Income Taxes 388.0 373.6
Regulatory Assets 336.9 345.9 Regulatory Liabilities 49.3 43.5
Defined Benefit Pension & Other
Investment in ATC 102.6 98.9 Postretirement Benefit Plans 253.8 253.5
Investments 136.0 132.3 Other Liabilities 110.6 105.1
Other       39.1       39.2       Shareholders’ Equity       1,119.7       1,079.3
Total Assets     $ 2,962.2     $ 2,876.0       Total Liabilities and Shareholders’ Equity     $ 2,962.2     $ 2,876.0
 
         
Quarter Ended Six Months Ended
ALLETE, Inc. June 30, June 30,
Income (Loss)       2012     2011     2012     2011
Millions        
Regulated Operations $ 14.4 $ 18.3 $ 38.8 $ 56.7
Investments and Other               (1.3 )             (2.5 )
Net Income Attributable to ALLETE       $ 14.4     $ 17.0       $ 38.8     $ 54.2  
Diluted Earnings Per Share       $ 0.39     $ 0.48       $ 1.05     $ 1.55  
 
Statistical Data                          
Corporate
Common Stock
High $ 41.99 $ 41.43 $ 42.49 $ 41.43
Low $ 38.03 $ 37.87 $ 38.03 $ 36.33
Close $ 41.80 $ 41.04 $ 41.80 $ 41.04
Book Value $ 29.24 $ 28.23 $ 29.24 $ 28.23
 
Kilowatt-hours Sold                          
Millions
Regulated Utility
Retail and Municipals
Residential 226 238 552 600
Commercial 326 328 690 704
Municipals 234 230 498 499
Industrial         1,842       1,782         3,710       3,620  
Total Retail and Municipal 2,628 2,578 5,450 5,423
Other Power Suppliers         492       614         1,009       1,154  
Total Regulated Utility 3,120 3,192 6,459 6,577
Non-regulated Energy Operations         25       25         55       51  
Total Kilowatt-hours Sold         3,145       3,217         6,514       6,628  
 
Regulated Utility Revenue                          
Millions
Regulated Utility Revenue
Retail and Municipals
Residential $ 20.5 $ 23.6 $ 49.9 $ 58.0
Commercial 24.7 26.2 51.9 55.5
Municipals 13.9 15.4 31.3 32.6
Industrial         93.5       96.3         191.3       194.1  
Total Retail and Municipals 152.6 161.5 324.4 340.2
Other Power Suppliers 17.7 20.7 36.4 40.3
Other         26.7       19.6         54.8       44.3  
Total Regulated Utility Revenue       $ 197.0     $ 201.8       $ 415.6     $ 424.8  




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