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FERGUS FALLS, Minn., Feb. 11, 2013 (GLOBE NEWSWIRE) -- Otter Tail Corporation (Nasdaq:OTTR) today announced financial results for the year ended December 31, 2012.
The corporation continues to execute on its strategy of de-risking with divestitures of DMS Health Technologies, Inc. (DMS) and DMI Industries, Inc. (DMI) in 2012 and ShoreMaster, Inc. (ShoreMaster) in 2013.
Consolidated revenues from continuing operations rose 2.3% to $859.2 million compared with $840.2 million in 2011.
Consolidated operating income from continuing operations rose 14.1% to $82.0 million from $71.9 million in 2011.
On a non-GAAP basis 1, excluding interest and early retirement charges of $9.3 million in 2012 and interest charges of $2.7 million in 2011 related to the corporation's $50 million, 8.89% Senior Unsecured Note due November 30, 2017, that was retired in July 2012, consolidated net income from continuing operations totaled $48.3 million, or $1.31 per diluted share, compared with $37.6 million, or $1.02 per diluted share, in 2011, a 28.5% improvement.
Consolidated net income from continuing operations increased to $39.0 million, or $1.05 per diluted share, from $34.9 million, or $0.95 per diluted share, in 2011.
Consolidated net losses from continuing and discontinued operations totaled $5.3 million, or ($0.17) per diluted share, compared with $13.2 million, or ($0.40) per diluted share for 2011.
The corporation expects 2013 earnings per share from continuing operations to be in a range of $1.30 to $1.55.
1This 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 for interest expense related to the retired debt, 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
"We are pleased to have ended the year with a good quarter. 2012 was a year of transformation. We made significant progress and our company is stronger with enhanced financial stability, more predictable growth, and a lower risk profile," said Otter Tail Corporation President and CEO Jim McIntyre. "In 2012, we completed the sales of DMS, our health services company, and DMI, our wind tower manufacturer. And on February 8, 2013 we closed on the sale of substantially all of the assets of ShoreMaster, our waterfront equipment manufacturer. Additionally, we took steps to further strengthen our capital structure and lower our borrowing expense by retiring our $50 million, 8.89% Senior Unsecured Note, in connection with the sale of DMI.