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NorthWestern Reports Third Quarter 2009 Financial Results
PR Newswire
Oct 28, 2009
SIOUX FALLS, S.D., Oct. 28 /PRNewswire-FirstCall/ -- NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) reported financial results for the quarter ended Sept. 30, 2009.
Highlights for the quarter include:
-- Net income increased to $18.9 million in the third quarter of 2009
compared with $13.4 million in the third quarter of 2008, led by a $12.4
million tax benefit from the repairs expense deduction;
-- Obtained Internal Revenue Service (IRS) approval of a tax accounting
method to deduct repairs that would have previously been
capitalized;.
-- Operating income for the third quarter of 2009 declined approximately
$8.4 million from the same period in 2008;
-- Gross margin for the third quarter of 2009 declined approximately
$14 million from the same period in 2008;
-- Third quarter 2009 operating, general, and administrative expenses
were $5.5 million less than the third quarter of 2008;
-- Received an upgrade of the Company's senior secured credit ratings by
Moody's Investors Service from Baa1 to A3;
-- Priced $55 million of 30-year maturity Montana First Mortgage Bonds at a
fixed interest rate of 5.71%;
-- Contributed approximately $76.4 million to qualified pension plans
during the first nine months of 2009 and have achieved a year-to-date
return of approximately 20%; and
-- Quarterly dividend of 33.5 cents per share declared for shareholders of
record on Dec. 15, 2009, payable on Dec. 31, 2009.
"Net income improved in the third quarter 2009 primarily because we received an IRS approval to change a tax accounting method enabling us to immediately expense certain repairs that we had previously capitalized for tax purposes," said Bob Rowe, President and CEO. "Our gross margin and operating income declined in light of mild weather and a slowing economy but we have improved our cost management, which partially contributed to our reduction in the operating expenses for the quarter."
Financial Results
Consolidated net income was $18.9 million or $.52 per diluted share for the quarter ended Sept. 30, 2009, a 41% increase compared with consolidated net income of $13.4 million or $.35 per diluted share for the quarter ended Sept. 30, 2008. The increase in net income was primarily due to an income tax adjustment, a reduction in pension expense due to timing, the transfer of our interest in Colstrip Unit 4 (CU4) to rate base, and reductions in other operational expenses. These increases were partially offset by the absence of a mark-to-market gain from prior year, a net reduction in insurance recoveries and settlements received compared with 2008, a reduction in retail electric volumes caused by mild weather and the slower economy, and an increase in interest expense. For a reconciliation of the primary drivers for the quarter, see the table below.
Consolidated net income for the nine months ended Sept. 30, 2009 was $47.8 million, an increase of $1.5 million over $46.3 million in 2008. The increase in net income was primarily due to an income tax adjustment, the transfer of CU4 to rate base, and a reduction in the timing of pension expense. These increases were partially offset by a reduction in retail electric and natural gas volumes caused by mild weather, an increase in labor costs, the absence of a mark-to-market gain related to a forward contract in place in 2008, an increase in insurance reserves, a decrease in wholesale revenues related to a reduction in electric pricing in South Dakota, a decrease in transmission capacity revenues, a net reduction in insurance recoveries and settlements received compared with 2008 and an increase of post retirement health care costs.
The following tables reconcile the primary changes in 2009 results from 2008:
Year-to-Date
Third Quarter Third Quarter
------------- -------------
Net Net
Income Income
Pretax (1) EPS Pretax (1) EPS
------ --- --- ------ --- ---
($millions,
except EPS)
2008 reported $20.9 $13.4 $0.35 $73.1 $46.3 $1.19
Lower average share
counts - - 0.02 - - 0.09
Tax accounting change - 12.4 0.34 - 12.4 0.34
Pension expense (timing) 8.9 5.5 0.15 3.8 2.3 0.06
Colstrip Unit 4 in rate
base 3.7 2.3 0.06 14.1 8.7 0.24
Bad debt expense 1.0 0.6 0.02 0.3 0.2 0.01
Legal and professional
fees 0.8 0.5 0.01 2.5 1.5 0.04
Stock based compensation
and short-term
incentive 0.8 0.5 0.01 2.2 1.4 0.04
Insurance reserves - - - (3.7) (2.3) (0.06)
QF supply costs - - - (1.1) (0.7) (0.02)
Loss on capacity
contract (0.3) (0.2) (0.01) (1.5) (0.9) (0.03)
Colstrip Unit 4
operating expense
(outage related) (0.5) (0.3) (0.01) (2.4) (1.5) (0.04)
Wholesale electric
prices and volumes (0.7) (0.4) (0.01) (3.5) (2.2) (0.06)
Post retirement health
care (0.7) (0.4) (0.01) (2.1) (1.3) (0.04)
MT property tax tracker (0.8) (0.5) (0.01) (2.9) (1.8) (0.05)
Labor increases (1.0) (0.6) (0.02) (4.2) (2.6) (0.07)
Regulated electric
transmission (1.7) (1.0) (0.03) (3.3) (2.0) (0.06)
Retail electric and
natural gas volumes (2.6) (1.6) (0.04) (4.8) (3.0) (0.08)
Insurance recoveries &
settlements (6.3) (3.9) (0.11) (1.7) (1.0) (0.03)
2008 unrealized gain on
forward contract (10.2) (6.3) (0.17) (3.8) (2.3) (0.06)
All other, net (1.2) (1.0) (0.02) (5.3) (3.5) (0.09)
----- ----- ------ ----- ----- ------
Subtotal $0.17 $0.13
----- -----
2009 reported $10.1 $18.9 $0.52 $55.7 $47.8 $1.32
===== ===== ===== ===== ===== =====
(1) Net Income calculation on reconciling items assumes normal effective
tax rate of 38.5%.
For more information see
http://www.northwesternenergy.com/documents/investor/Q309.pdf
Consolidated gross margin for the third quarter of 2009 was $127.7 million compared with $141.7 million for the third quarter of 2008. The decrease in gross margin was primarily due to the absence of a third quarter 2008 gain on forward contracts of approximately $10.2 million, mild weather affecting margins by approximately $2.6 million and reduced transmission revenues of approximately $1.7 million. Offsetting the decrease to gross margin was the effect of approximately $3.7 million in rates related to placing CU4 into rate base in 2009.
Consolidated gross margin for the nine months ended Sept. 30, 2009 was $419.5 million, a decrease of $6.3 million over the first nine months of 2008 due primarily to the absence of the mark-to-market gain on the forward contracts, reduced electric and natural gas volumes caused by mild weather, and reduced transmission capacity revenues due to less demand to transmit energy for others across our transmission lines, offset by placing CU4 into rate base in 2009.
Consolidated operating, general and administrative expenses were $57.9 million for the third quarter of 2009 compared with $63.4 million for the third quarter of 2008. The decrease was due primarily to a reduction in pension expenses of approximately $8.9 million compared with the third quarter of 2008. This was offset by a net decrease in insurance recoveries and settlements, increased labor costs due primarily to compensation increases, and higher postretirement health care costs due to changes in actuarial assumptions and plan asset losses.
Consolidated operating, general and administrative expenses were $184.2 million for the nine months ended Sept. 30, 2009 as compared with $177.3 million in same period of 2008. The increase was due primarily to an increase in labor costs, an increase for insurance reserves, a reduction in insurance recoveries and settlements, and higher postretirement health care costs, offset in part by a reduction in pension expenses.
Property and other taxes were $20.8 million in the third quarter of 2009 compared with $21.7 million in the same period of 2008. For the nine months ended Sept. 30, 2009, property and other taxes were $63.4 million compared with $65.9 million in the same period of 2008. The decreases were due to lower assessed property valuations.
Depreciation expense was $22.0 million in the third quarter of 2009 compared with $21.3 million in the same period of 2008. For the nine months ended Sept. 30, 2009, depreciation expense was $67.0 million compared with $63.6 million in the same period of 2008. The increases were due to plant additions.
Interest expense was $17.3 million for the third quarter of 2009 compared with $15.6 million for the third quarter of 2008, primarily related to the additional debt outstanding. For the nine months ended Sept. 30, 2009, interest expense was $50.4 million compared with $47.5 million in the same period of 2008.
Results from Operations
Electric gross margin for the third quarter of 2009 was $106.1 million, down $12.9 million for the same period in 2008, after considering the transfer of CU4 from the unregulated electric segment to the regulated electric segment. The decline in net electric gross margin is primarily due to the absence of a third quarter 2008 $10.2 million gain on forward contracts and by a decrease in South Dakota wholesale margin due to lower sales at lower average prices, decreased retail volumes due to cooler summer weather and lower usage per customer, lower transmission capacity revenues with less demand to transmit energy for others across our lines, and higher QF related supply costs based on actual QF pricing and output. This decline in electric margin was offset in part by the transfer of Colstrip Unit 4 to the regulated utility.
Regulated retail electric volumes for the third quarter of 2009 totaled 2,487,000 megawatt hours compared with 2,626,000 megawatt hours for the third quarter of 2008. The decrease was due primarily to cooler summer weather than the same period in 2008. Wholesale electric volumes were 190,000 megawatt hours for the third quarter 2009, an increase from 71,000 megawatt hours for the same period of 2008, due to transferring CU4 to the regulated utility.
Regulated electric gross margin for the nine months ended Sept. 30, 2009 decreased $1.5 million as compared with the same period in 2008, after considering the transfer of CU4 from unregulated electric segment to the regulated electric segment. The decrease is due primarily to the same reasons discussed above for the quarter ended Sept. 30, 2009.
Regulated retail electric volumes for the nine months ended Sept. 30, 2009 totaled 7,448,000 megawatt hours, a decrease of 2.4% as compared with the same period in 2008. Regulated wholesale electric volumes for the first nine months in 2009 were 587,000 megawatt hours, an increase from 202,000 megawatt hours in the same period in 2008, due primarily to transferring CU4 to the regulated utility.
Regulated natural gas gross margin was $21.9 million for the third quarter of 2009 compared with $22.8 million for the third quarter in 2008. The decrease was primarily due to lower average usage per customer.
Regulated retail natural gas volumes were 2,163,000 dekatherms for the third quarter of 2009, compared with 2,344,000 dekatherms for the same period in 2008. The decrease in volumes was primarily due to milder weather in the Montana service territory, the weaker economy and efficiency measures.
Regulated natural gas gross margin for the first nine months of 2009 was $100.2 million compared with $103.8 million for the same period in 2008. The decrease was primarily due to decreased volumes due to milder weather in Montana and Nebraska.
Regulated retail natural gas volumes were 21,450,000 dekatherms for the first nine months of 2009 compared with 22,571,000 dekatherms for the same period in 2008.
Liquidity and Capital Resources
As of Sept. 30, 2009, our total net liquidity was approximately $226.9 million, including $6.0 million of cash and 220.9 million of revolving credit facility availability. In addition, Moody's upgraded our senior secured credit rating on August 3, 2009, from Baa1 to A3.
Cash provided by operating activities totaled $129.3 million during the first nine months of 2009, compared with $176.7 million during the nine months ended Sept. 30, 2008. This decrease in operating cash flows is primarily related to pension funding of $76.4 million, which was an increase of approximately $54.5 million as compared with the nine months ended Sept. 30, 2008, and a $10.8 million prepayment of a power purchase agreement, offset by lower commodity prices reflected in the change in accounts receivable and accounts payable, as well as decreased cash outflows for natural gas storage injections.
The Company used $115.5 million for investment activities during the nine months ended Sept. 30, 2009 compared with $80.9 million for the nine months ended Sept. 30, 2008. The increase was due to increased property, plant and equipment additions.
Cash used in financing activities totaled approximately $19.1 million during the nine months ended Sept. 30, 2009 as compared with $100.0 million during the nine months ended Sept. 30, 2008. During the nine months ended Sept. 30, 2009, the Company received net proceeds from the issuance of debt of $249.8 million, made net debt repayments of $221.8 million, paid deferred financing costs of $10.4 million and paid dividends on common stock of $36.1 million. During the nine months ended Sept. 30, 2008, the Company had net borrowings of $18.0 million, paid dividends on common stock of $38.0 million and used cash to repurchase shares under a previously approved plan of approximately $77.7 million.
Growth Projects Update
Mill Creek Generation Station:
-- Construction began in June 2009;
-- An official ground breaking event occurred on August 27, 2009;
-- The Company has capitalized approximately $40.5 million in construction
work in process related to this project;
-- The total capital cost of the project is expected to be approximately
$202 million, upon completion; and
-- The plant is scheduled to be operational by December 31, 2010.
Colstrip Transmission System Upgrade:
-- The Company and the Colstrip Transmission System owners are conducting a
technical study to determine the range of improvements and expect it to
be completed by the end of 2009;
-- The Company anticipates the Partner Participation Agreement to be
completed in early 2010;
-- The Company's capital cost of the project is estimated to be
approximately $41 million, if all partners to the Colstrip Transmission
System participate in the upgrade;
-- The commencement of the construction is expected in the Summer of 2011;
and
-- The upgrades to the system are expected to be completed by the end of
the third quarter of 2012.
Renewable Collector System in Montana:
-- The Company is planning to conduct a second open season process in the
first half of 2010;
-- The Joint System Impact/Facility Study is expected to be completed by
the end of the first half of 2010;
-- The Company's assumed capital on the project is approximately $220
million; and
-- The lines are scheduled to be operational by the second quarter of 2014.
Mountain States Transmission Intertie (MSTI):
-- Public meetings educating communities and land owners are planned
throughout the fourth quarter of 2009 and will continue into 2010;
-- The Company is planning to conduct a second open season process by the
end of the first half of 2010;
-- The draft Environmental Impact Study, which will include the Rate Impact
Study, is planned to be released by the agencies by the end of the first
quarter of 2010;
-- The Company has submitted Part I of the Department of Energy loan
application for consideration under the Federal Loan Guarantees for
Electric Power Transmission Infrastructure Investment Projects;
-- As of Sept. 30, 2009, the Company has capitalized approximately $9.6
million for preliminary survey, siting, permitting, environmental and
engineering costs;
-- The Company estimates capitalizing approximately $2 million more in
costs by the end of 2009; and expects the total cost of the project will
be approximately $1 billion;
-- MSTI is expected to be placed in service by the first quarter of 2015.
Dividend
NorthWestern's Board of Directors declared a quarterly common stock dividend of 33.5 cents per share, payable on Dec. 31, 2009, to common shareholders of record as of Dec. 15, 2009.
2009 Earnings Revised and Fourth Quarter Outlook
The current weak economic conditions have resulted, and we believe will likely continue to result in weaker customer demand. While customer counts increased, retail residential and commercial electric volumes were down 3% and industrial volumes were down 9% for the third quarter of 2009 as compared with the same quarter of 2008. This volume reduction, while due in part to energy efficiency measures and milder weather, is also largely due to weak economic conditions, particularly for commercial and industrial customers. Our margins are minimally impacted by changes in industrial demand due to our rate structure.
We expect to continue to experience relatively flat residential demand as well as reduced commercial and industrial demand during the remainder of 2009. The weak economy also contributed to a 13% decrease in transmission capacity revenues, which we expect to continue through the end of 2009. In addition, we expect the effective tax rate for the year ended Dec. 31, 2009 to be approximately 20.0%, primarily due to the repair expense deduction, discussed above.
NorthWestern's estimate for earnings per share in 2009 had been in the range of
$1.75 - $1.85 per fully diluted share. Due primarily to the IRS approval of a tax accounting method change to deduct repairs that would have previously been capitalized, we are revising the estimate for earnings per share in 2009 to be in the range of $1.95 - $2.05. The guidance assumptions for 2009 include:
-- Our year to date results through September 30, 2009;
-- An effective tax rate for the full year 2009 to be approximately 20% and
about 30% for the fourth quarter of 2009;
-- Wholesale electric pricing in South Dakota continues at the current
levels;
-- The lower transmission capacity demand continues;
-- We expect to continue to experience relatively flat residential demand
as well as reduced commercial and industrial demand during the remainder
of 2009;
-- No further insurance recoveries for 2009;
-- Fully diluted average shares outstanding of 36.3 million; and
-- Normal weather in the Company's electric and natural gas service
territories for the fourth quarter of 2009.
Company Hosting Investor Conference Call
NorthWestern will host an investor conference call tomorrow (Oct. 29) at 11:00 am Eastern Time (10:00 a.m. Central Time) to review its financial results for the quarter ended Sept. 30, 2009.
The conference call will be webcast live on the Internet at http://www.northwesternenergy.com under the "Investor Information" heading. To listen, please go to the site at least 10 minutes in advance of the call to register. An archived webcast will be available shortly after the call.
A telephonic replay of the call will be available beginning at noon ET on Oct. 29, 2009, through Nov. 29, 2009, at 800-475-6701, access code 118865.
About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 656,000 customers in Montana, South Dakota and Nebraska. More information on NorthWestern Energy is available on the Company's Web site at www.northwesternenergy.com.
SPECIAL NOTE REGARDING FORWARD--LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, without limitation, the information under "2009 Earnings Revised and Fourth Quarter Outlook". Forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." These statements are based upon our current expectations and speak only as of the date hereof. Our actual future business and financial performance may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including, but not limited to:
-- potential adverse federal, state, or local legislation or regulation or
adverse determinations by regulators could have a material adverse
effect on our liquidity, results of operations and financial condition;
-- changes in availability of trade credit, usage, commodity prices, fuel
supply costs or availability due to higher demand, shortages, weather
conditions, transportation problems or other developments, may reduce
revenues or may increase operating costs, each of which would adversely
affect our liquidity and results of operations;
-- unscheduled generation outages or forced reductions in output,
maintenance or repairs, which may reduce revenues and increase operating
costs or may require additional capital expenditures or other increased
operating costs; and
-- adverse changes in general economic and competitive conditions in the
U.S. financial markets and in our service territories.
Our Annual Report on Form 10-K, recent and forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition.
We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
NORTHWESTERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
2009 2008
---- ----
(unaudited)
ASSETS
Current Assets $237,412 $313,417
Property, Plant, and Equipment, Net 1,899,525 1,839,699
Goodwill 355,128 355,128
Regulatory Assets 233,525 233,102
Other Noncurrent Assets 28,888 20,691
------ ------
Total Assets $2,754,478 $2,762,037
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Maturities of Long-term Debt and Capital
Leases $7,310 $229,238
Current Liabilities 319,749 359,339
Long-term Capital Leases 35,882 36,798
Long-term Debt 884,280 634,011
Noncurrent Regulatory Liabilities 235,881 222,969
Deferred Income Taxes 149,072 114,707
Other Noncurrent Liabilities 346,670 401,442
------- -------
Total Liabilities 1,978,844 1,998,504
--------- ---------
Total Shareholders' Equity 775,634 763,533
------- -------
Total Liabilities and Shareholders' Equity $2,754,478 $2,762,037
========== ==========
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share amounts)
Three Nine
Months Ended Months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Revenues
Electric $198,416 $207,687 $579,277 $582,687
Gas 34,179 45,603 253,976 297,357
Other 291 18,954 6,249 54,681
--- ------ ----- ------
Total Revenues 232,886 272,244 839,502 934,725
------- ------- ------- -------
Operating Expenses
Cost of sales 105,183 130,503 420,033 508,941
Operating, general
and
administrative 57,893 63,411 184,210 177,348
Property and other
taxes 20,866 21,718 63,401 65,898
Depreciation 21,977 21,292 66,959 63,608
------ ------ ------ ------
Total Operating
Expenses 205,919 236,924 734,603 815,795
------- ------- ------- -------
Operating Income 26,967 35,320 104,899 118,930
------ ------ ------- -------
Interest Expense (17,267) (15,629) (50,403) (47,478)
Other Income 403 1,218 1,192 1,640
--- ----- ----- -----
Income Before
Income Taxes 10,103 20,909 55,688 73,092
Income Tax Benefit
(Expense) 8,797 (7,530) (7,877) (26,759)
----- ------ ------ -------
Net Income $18,900 $13,379 $47,811 $46,333
------- ------- ------- -------
Average Common
Shares Outstanding 35,968 38,057 35,947 38,665
------ ------ ------ ------
Basic Earnings per
Average Common Share $0.53 $0.35 $1.33 $1.20
----- --- ----- -----
Diluted Earnings
per Average
Common Share $0.52 $0.35 $1.32 $1.19
--- --- ----- -----
Dividends Declared
per Average
Common Share $0.335 $0.33 $1.01 $0.99
------ ----- ----- -----
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Nine Months Ended September 30,
2009 2008
---- ----
Operating Activities
Net income $47,811 $46,333
Non-cash items 95,416 92,607
Changes in operating
assets and liabilities (13,916) 37,809
------- ------
Cash Provided by Operating
Activities 129,311 176,749
Cash Used in Investing
Activities (115,529) (80,930)
Cash Used In Financing
Activities (19,031) (100,017)
Net Decrease in Cash and
Cash Equivalents $(5,249) $(4,198)
------- -------
Cash and Cash Equivalents,
beginning of period $11,292 $12,773
------- -------
Cash and Cash Equivalents,
end of period $6,043 $8,575
====== ======
NORTHWESTERN CORPORATION
REGULATED ELECTRIC SEGMENT
Three months ended Sept. 30, 2009
(Unaudited)
Results
-------
2009 2008 Change % Change
---- ---- ------ -------
(in millions)
Retail revenue $163.3 $191.2 $(27.9) (14.6)%
Transmission 11.2 12.9 (1.7) (13.2)
Wholesale 11.1 2.3 8.8 382.6
Regulatory Amortization and
Other 13.1 1.6 11.5 718.8
---- --- ---- -----
Total Revenues 198.7 208.0 (9.3) (4.5)
Total Cost of Sales 92.6 113.3 (20.7) (18.3)
---- ----- ----- -----
Gross Margin $106.1 $94.7 $11.4 12.0%
------ ----- ----- ----
Megawatt Avg. Customer
Revenues Hours (MWH) Counts
-------- ---------- ------
2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
(in thousands)
Retail Electric
Montana $49,248 $58,008 515 532 267,382 265,258
South Dakota 10,776 11,984 122 130 48,256 47,947
------ ------ --- --- ------ ------
Residential 60,024 69,992 637 662 315,638 313,205
------ ------ --- --- ------- -------
Montana 70,030 80,770 828 853 60,602 59,817
South Dakota 16,539 18,148 230 237 11,792 11,605
------ ------ --- --- ------ ------
Commercial 86,569 98,918 1,058 1,090 72,394 71,422
------ ------ ----- ----- ------ ------
Industrial 8,079 11,914 717 786 71 71
Other 8,592 10,411 75 88 7,728 7,640
----- ------ -- -- ----- -----
Total Retail
Electric $163,264 $191,235 2,487 2,626 395,831 392,338
======== ======== ===== ===== ======= =======
Wholesale
Electric
Montana $9,464 $ - 126 - N/A N/A
South Dakota 1,636 2,268 64 71 N/A N/A
----- ----- -- -- --- ---
Total Wholesale
Electric $11,100 $2,268 190 71 N/A N/A
======= ====== === == === ===
2009 as compared to:
--------------------
Historic
Cooling Degree-Days 2008 Average
---------------------- ---- -------
Montana 5% colder 10% warmer
South Dakota 30% colder 37% colder
NORTHWESTERN CORPORATION
REGULATED ELECTRIC SEGMENT
Nine months ended Sept. 30, 2009
(Unaudited)
Results
-------
2009 2008 Change % Change
---- ---- ------ --------
(in millions)
Retail revenue $494.8 $538.6 $(43.8) (8.1)%
Transmission 33.5 36.8 (3.3) (9.0)
Wholesale 32.8 8.1 24.7 304.9
Regulatory Amortization and
Other 19.0 0.1 18.9 18900.0
---- --- ---- -------
Total Revenues 580.1 583.6 (3.5) (0.6)
Total Cost of Sales 258.9 303.5 (44.6) (14.7)
----- ----- ----- -----
Gross Margin $321.2 $280.1 $41.1 14.7%
------ ------ ----- ----
Avg. Customer
Revenues MWHs Counts
-------- ---- ------
2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
(in thousands)
Retail Electric
Montana $162,708 $178,571 1,682 1,699 268,337 265,727
South Dakota 33,818 34,417 402 394 48,211 47,912
------ ------ --- --- ------ ------
Residential 196,526 212,988 2,084 2,093 316,548 313,639
------- ------- ----- ----- ------- -------
Montana 203,324 220,209 2,373 2,408 60,374 59,471
South Dakota 47,960 49,208 660 658 11,656 11,486
------ ------ --- --- ------ ------
Commercial 251,284 269,417 3,033 3,066 72,030 70,957
------- ------- ----- ----- ------ ------
Industrial 27,292 35,026 2,183 2,320 72 71
Other 19,743 21,129 148 151 6,070 5,951
------ ------ --- --- ----- -----
Total Retail
Electric $494,845 $538,560 7,448 7,630 394,720 390,618
======== ======== ===== ===== ======= =======
Wholesale
Electric
Montana $28,355 $ - 426 - N/A N/A
South Dakota 4,429 8,115 161 202 N/A N/A
----- ----- --- --- --- ---
Wholesale
Electric $32,784 $8,115 587 202 N/A N/A
======= ====== === === === ===
2009 as compared to:
--------------------
Historic
Cooling Degree-Days 2008 Average
------------------- ---- -------
Montana 6% colder 5% colder
South Dakota 24% colder 37% colder
NORTHWESTERN CORPORATION
REGULATED NATURAL GAS SEGMENT
Three months ended Sept. 30, 2009
(Unaudited)
Results
-------
2009 2008 Change % Change
---- ---- ------ --------
(in millions)
Retail revenue $23.0 $37.5 $(14.5) (38.7)%
Wholesale and other 11.2 8.1 3.1 38.3
---- --- --- ----
Total Revenues 34.2 45.6 (11.4) (25.0)
Total Cost of Sales 12.3 22.8 (10.5) (46.1)
---- ---- ----- -----
Gross Margin $21.9 $22.8 $(0.9) (3.9)%
----- ----- ----- ----
Dekatherms Customer
Revenues (Dkt) Counts
-------- ----- ------
2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
(in thousands)
Retail Gas
Montana $10,259 $16,189 822 941 155,546 154,403
South Dakota 1,698 2,496 124 126 36,353 36,169
Nebraska 1,973 2,922 164 160 36,008 35,960
----- ----- --- --- ------ ------
Residential 13,930 21,607 1,110 1,227 227,907 226,532
------ ------ ----- ----- ------- -------
Montana 5,987 9,266 527 571 21,780 21,601
South Dakota 1,357 3,156 212 246 5,749 5,684
Nebraska 1,560 3,127 297 278 4,408 4,461
----- ----- --- --- ----- -----
Commercial 8,904 15,549 1,036 1,095 31,937 31,746
----- ------ ----- ----- ------ ------
Industrial 134 228 12 15 293 301
Other 58 107 5 7 142 140
-- --- - - --- ---
Total Retail Gas $23,026 $37,491 2,163 2,344 260,279 258,719
======= ======= ===== ===== ======= =======
2009 as compared with:
---------------------
Historic
Heating Degree-Days 2008 Average
------------------- ---- -------
Montana 34% warmer 35% warmer
South Dakota 10% colder 4% colder
Nebraska 2% colder 6% colder
NORTHWESTERN CORPORATION
REGULATED NATURAL GAS SEGMENT
Nine months ended Sept. 30, 2009
(Unaudited)
Results
-------
2009 2008 Change % Change
---- ---- ------ --------
(in millions)
Retail revenue $217.9 $267.9 $(50.0) (18.7)%
Wholesale and other 36.4 29.9 6.5 21.7
---- ---- --- ----
Total Revenues 254.3 297.8 (43.5) (14.6)
Total Cost of Sales 154.1 194.0 (39.9) (20.6)
----- ----- ----- -----
Gross Margin $100.2 $103.8 $(3.6) (3.5)%
------ ------ ----- ----
Customer
Revenues Dkt Counts
-------- --- ------
2009 2008 2009 2008 2009 2008
---- ---- ---- ---- ---- ----
(in thousands)
Retail Gas
Montana $86,934 $110,886 8,338 9,033 156,662 155,236
South Dakota 26,132 29,284 2,251 2,322 36,676 36,527
Nebraska 22,432 25,068 1,981 2,091 36,360 36,397
------ ------ ----- ----- ------ ------
Residential 135,498 165,238 12,570 13,446 229,698 228,160
------- ------- ------ ------ ------- -------
Montana 44,401 56,202 4,311 4,563 21,945 21,685
South Dakota 19,984 23,333 2,282 2,166 5,810 5,761
Nebraska 16,152 20,384 2,094 2,157 4,496 4,524
------ ------ ----- ----- ----- -----
Commercial 80,537 99,919 8,687 8,886 32,251 31,970
------ ------ ----- ----- ------ ------
Industrial 1,149 1,765 114 150 296 304
Other 727 950 79 89 142 140
--- --- -- -- --- ---
Total Retail Gas $217,911 $267,872 21,450 22,571 262,387 260,574
======== ======== ====== ====== ======= =======
2009 as compared with:
----------------------
Historic
Heating Degree-Days 2008 Average
------------------- ---- -------
Montana 8% warmer 5% warmer
South Dakota Remained flat 5% colder
Nebraska 7% warmer 2% warmer
NORTHWESTERN CORPORATION
SEGMENT INFORMATION
Three Months Ended September 30, 2009
(Unaudited)
(in thousands)
Regulated
Three Months Ended ---------
September 30, 2009 Electric Gas Other Eliminations Total
------- --- ----- ------------ -----
Operating
revenues $198,689 $34,205 $291 $(299) $232,886
Cost of
sales 92,592 12,326 265 - 105,183
------ ------ --- --- -------
Gross
margin 106,097 21,879 26 (299) 127,703
------- ------ -- ---- -------
Operating,
general
and
administrative 40,834 17,701 (343) (299) 57,893
Property
and other
taxes 15,351 5,479 36 - 20,866
Depreciation 17,772 4,197 8 - 21,977
------ ----- --- --- ------
Operating
income
(loss) 32,140 (5,498) 325 - 26,967
------ ------ --- --- ------
Interest
expense (13,056) (3,243) (968) - (17,267)
Other
income 310 67 26 - 403
Income tax
benefit 789 5,694 2,314 - 8,797
--- ----- ----- --- -----
Net income
(loss) $20,183 $(2,980) $1,697 $- $18,900
--- ----- ------ --- -------
Three Months Ended Regulated Unregulated
September 30, --------- -----------
2008 Electric Gas Electric Other Eliminations Total
-------- --- -------- ----- ------------ -----
Operating
revenues $208,020 $45,651 $20,091 $7,889 (9,407) $272,244
Cost of sales 113,299 22,803 (4,184) 7,611 (9,026) 130,503
------- ------ ------ ----- ----- -------
Gross margin 94,721 22,848 24,275 278 (381) 141,741
------ ------ ------ --- --- -------
Operating,
general and
administrative 45,882 20,058 3,563 (5,711) ( 381) 63,411
Property and
other taxes 15,380 5,543 792 3 - 21,718
Depreciation 15,416 4,041 1,827 8 - 21,292
------ ----- ----- --- --- ------
Operating
income
(loss) 18,043 (6,794) 18,093 5,978 - 35,320
------ ------ ------ ----- --- ------
Interest
expense (9,679) (3,389) (2,189) (372) - (15,629)
Other income 306 298 1 613 --- 1,218
Income tax
(expense)
benefit (3,477) 3,750 (6,303) (1,500) - (7,530)
------ ----- ------ ------ --- ------
Net income
(loss) $5,193 $(6,135) $9,602 $4,719 $- $13,379
------ ------- ------ ------ --- -------
NORTHWESTERN CORPORATION
SEGMENT INFORMATION
Nine Months Ended September 30, 2009
(Unaudited)
(in thousands)
Nine Months Ended Regulated
September 30, ---------
2009 Electric Gas Other Eliminations Total
-------- --- ----- ------------ -----
Operating
revenues $580,139 $254,338 $6,248 $(1,223) $839,502
Cost of
sales 258,964 154,105 6,964 - 420,033
------- ------- ----- - -------
Gross
margin 321,175 100,233 (716) (1,223) 419,469
------- ------- ---- ------ -------
Operating,
general
and
administrative 128,575 58,806 (1,948) (1,223) 184,210
Property
and other
taxes 46,433 16,857 111 - 63,401
Depreciation 54,113 12,821 25 - 66,959
------ ------ -- --- ------
Operating
income 92,054 11,749 1,096 - 104,899
------ ------ ----- --- -------
Interest
expense (37,963) (9,629) (2,811) - (50,403)
Other
income 783 322 87 --- 1,192
Income tax
(expense)
benefit (12,066) 1,571 2,618 - (7,87)
------- ----- ----- --- ------
Net income $42,808 $4,013 $990 $- 47,811
--- --- ---- --- ------
Nine Months Ended Regulated Unregulated
September 30, --------- -----------
2008 Electric Gas Electric Other Eliminations Total
-------- --- -------- ----- ------------ -----
Operating
revenues $583,606 $297,825 $57,064 $24,464 $(28,234) $934,725
Cost of
sales 303,550 193,996 14,472 23,770 (26,847) 508,941
------- ------- ------ ------ ------- -------
Gross
margin 280,056 103,829 42,592 694 (1,387) 425,784
------- ------- ------ --- ------ -------
Operating,
general
and
administrative 115,755 53,717 10,459 (1,196) (1,387) 177,348
Property
and
other
taxes 46,147 17,355 2,386 10 - 65,898
Depreciation 46,203 11,925 5,455 25 - 63,608
------ ------ ----- -- - ------
Operating
income 71,951 20,832 24,292 1,855 - 118,930
------ ------ ------ ----- - -------
Interest
expense (28,138 ) (9,874) (8,358) (1,108) - (47,478)
Other
income
(expense) 891 857 133 (241) - 1,640
Income
tax
expense (15,810 ) (4,413) (6,457) (79) - (26,759)
------- ----- ------ --- --- -------
Net
income $28,894 $7,402 $9,610 $427 $- $46,333
------- ------ ------ ---- --- -------
SOURCE NorthWestern Corporation
Copyright (2009) PR Newswire. All Rights Reserved.
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