| NorthWestern Corporation d/b/a NorthWestern Energy 3010 W. 69th Street Sioux Falls, SD 57108 www.northwesternenergy.com | |
NYSE: NWE
News Release FOR IMMEDIATE RELEASE
|
Media Contact: Claudia Rapkoch (866) 622-8081 claudia.rapkoch@northwestern.com
Investor Relations Contact: Dan Rausch (605) 978-2902 daniel.rausch@northwestern.com |
NORTHWESTERN REPORTS SECOND QUARTER 2008 FINANCIAL RESULTS
Reports significant improvement in net income
Declares dividend of 33 cents per share
Sioux Falls, S.D. – July 31, 2008 – NorthWestern Corporation d/b/a NorthWestern Energy (NYSE: NWE) reported financial results for the quarter ended June 30, 2008.
Highlights for the quarter include:
| • | Net income improved to $9.5 million in the second quarter of 2008 compared with $2.4 million in the second quarter of 2007; |
| • | The stipulated agreement for electric and natural gas rate case was approved by the Montana Public Service Commission (“MPSC”); |
| • | A purchase and sale agreement with Bicent (Montana) Power Company, LLC (“Bicent”) to sell the Company’s 30% interest in Colstrip Unit 4 for $404 million was signed; |
| • | The agreement allows NorthWestern to work with the MPSC to explore the viability of placing the asset in rate base instead of selling to Bicent; |
| • | The application for consideration of rate base was filed; |
| • | If the asset is placed in rate base, the agreement with Bicent would be terminated; |
| • | Announced a share buyback program for approximately 3.1 million shares, equal to the number of shares in the Company’s disputed claims reserve; |
| • | Moody’s Investor Service (“Moody’s”) upgraded the Company’s senior secured and unsecured credit ratings; |
| • | Refinanced $55 million of South Dakota First Mortgage Bonds at a fixed rate of 6.05% maturing May 1, 2018, resulting is an annual interest savings of approximately $.5 million; |
| • | Began trading on the NYSE Euronext (“NYSE”) under ticker symbol NWE on May 1, 2008. |
Financial Results
Consolidated net income was $9.5 million or $.24 per diluted share for the quarter ended June 30, 2008, a 295.8% increase compared with consolidated net income of $2.4 million or $.06 per diluted share for the quarter ended June 30, 2007.
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 2
Consolidated net income for the six months ended June 30, 2008 was $33.0 million, an increase of $11.4 million, or 52.8%, over $21.6 million in 2007.
“We had a great quarter where we benefited from customer growth, rate relief and colder weather than last year,” said Mike Hanson, President and CEO. “We continue our focus on core operations and are well poised to move forward on our generation and transmission growth projects.”
Consolidated gross margin for the second quarter of 2008 was $127.2 million compared with $118.4 million for the second quarter of 2007. Improvements in margin were due to regulated electric and gas rate increases, increases in volumes from customer growth and usage, and lower qualifying facility (QF) supply costs based on actual QF pricing and output. Gross margin in the regulated electric segment increased $9.1 million from the second quarter of 2007. Gross margin in the regulated natural gas segment increased $5.5 million from the second quarter of 2007. Gross margin in the unregulated electric segment decreased $5.5 million from the second quarter of 2007.
Consolidated gross margin for the six months ended June 30, 2008 was $284.0 million, an increase of $18.4 million over the first six months of 2007.
Consolidated operating, general and administrative expenses were $53.9 million for the second quarter of 2008 compared with $58.7 million for the second quarter of 2007. The decrease was due to reduced operating lease expense related to the purchase of our previously leased interest in Colstrip Unit 4 and lower legal and professional fees.
Consolidated operating, general and administrative expenses were $113.9 million for the six months ended June 30, 2008 as compared with $121.1 million in same period of 2007.
Property and other taxes were $20.5 million in the second quarter of 2008 compared with $20.6 million in the same period of 2007. For the six months ended June 30, 2008, property and other taxes were $44.2 million compared with $41.3 million in the same period of 2007.
Depreciation expense was $21.2 million in the second quarter of 2008 compared with $20.8 million in the same period of 2007. The increase in depreciation expense was related primarily to the purchase of the previously leased interest in Colstrip Unit 4. For the six months ended June 30, 2008, depreciation expense was $42.3 million compared with $40.7 million in the same period of 2007.
Interest expense was $15.8 million for the second quarter of 2008 compared with $14.5 million for the second quarter of 2007, primarily related to the additional debt incurred for the purchase of the previously leased interest in Colstrip Unit 4. For the six months ended June 30, 2008, interest expense was $31.8 million compared with $27.7 million in the same period of 2007.
Results from Regulated Operations
Regulated electric gross margin for the second quarter of 2008 was $91.8 million, up 11.0 percent, compared with $82.7 million for the same period in 2007. This $9.1 million increase was primarily due to an annual adjustment to QF related supply costs to reflect actual QF pricing and output which was lower than our estimate, rate increases, better wholesale margin due to increased plant availability in South Dakota, offset in part by lower transmission volumes.
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 3
Regulated retail electric volumes for the second quarter of 2008 totaled 2,370,000 megawatt hours compared with 2,302,000 megawatt hours for the second quarter of 2007, a 3.0% increase. The increase was due primarily to customer growth. Wholesale electric volumes were 82,000 megawatt hours for the second quarter 2008, an increase from 33,000 megawatt hours for the same period of 2007 due primarily to increased plant availability in the South Dakota generation facilities.
Regulated electric gross margin for the six months ended June 30, 2008 increased $16.9 million as compared with the same period in 2007.
Regulated retail electric volumes for the six months ended June 30, 2008 totaled 5,005,000 megawatt hours, an increase of 3.5% as compared with the same period in 2007. Regulated wholesale electric volumes for the first six months in 2008 were 131,000 megawatt hours, an increase from 65,000 megawatt hours in the same period in 2007.
Regulated natural gas gross margin was $30.6 million for the second quarter of 2008 compared with $25.1 million for the second quarter in 2007. The increase was primarily due to increased volumes due to colder weather and 1.3% customer growth along with rate increases.
Regulated retail natural gas volumes were 6,055,000 dekatherms for the second quarter of 2008, an increase of 26.8% compared with 4,775,000 dekatherms for the same period in 2007. The increase in volumes was primarily due to colder weather and customer growth.
Regulated natural gas gross margin for the first six months of 2008 was $81.0 million compared with $68.1 million for the same period in 2007. The increase was primarily due to increased volumes due to colder weather and 1.3% customer growth along with rate increases.
Regulated retail natural gas volumes were 20,227,000 dekatherms for the first six months of 2008 compared with 17,811,000 dekatherms for the same period in 2007.
Results from Unregulated Operations
Gross margin from unregulated electric operations was $4.9 million for the second quarter of 2008, a decrease from $10.4 million for the second quarter of 2007 primarily due to lower average contracted prices and higher fuel supply costs, offset by an increase in volumes at Colstrip Unit 4. In addition, the Company recorded an unrealized loss of $5.2 million during the second quarter of 2008 on forward contracts due to changes in forward prices of electricity. These contracts economically hedge a portion of our Colstrip Unit 4 output through 2009. Unrealized gains and losses will be recorded, based on market prices through the duration of these contracts; however, they will ultimately reverse as the power is delivered.
Unregulated electric volumes were 416,000 megawatt hours in the second quarter of 2008 compared with 307,000 megawatt hours in the same period in 2007. Electric volumes at Colstrip Unit 4 increased primarily due to increased plant availability.
Unregulated electric gross margin for the six months ended June 30, 2008 decreased $10.1 million as compared with the same period in 2007.
Unregulated retail electric volumes for the six months ended June 30, 2008 totaled 891,000 megawatt hours, an increase of 21.2% as compared with the same period in 2007.
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 4
Liquidity and Capital Resources
As of June 30, 2008, cash and cash equivalents were $24.2 million compared with $12.8 million at Dec. 31, 2007. The Company had revolver availability of $178.4 million at June 30, 2008 compared with $158.7 million at Dec. 31, 2007.
Cash provided by operating activities totaled $124.6 million during the first six months of 2008, compared with $136.2 million during the six months ended June 30, 2007. This decrease was primarily due to the timing of accounts receivable collections, partially offset by decreased purchases of storage gas and higher net income.
The Company used $43.1 million for investment activities during the six months ended June 30, 2008 compared with $92.2 million for the six months ended June 30, 2007. Capital expenditures for the six months ended June 30, 2008 were $43.1 million as compared with $52.6 million in 2007. In addition, in 2007 the Company used $40.2 million to complete the purchase of a portion of our previously leased interest in the Colstrip Unit 4 generating facility.
The Company used $70.1 million in financing activities during the six months ended June 30, 2008 compared with $45.9 million for the six months ended June 30, 2007. During the six months ended June 30, 2008 the Company made net debt repayments of $42.9 million and paid dividends on common stock of $25.7 million. During the six months ended June 30, 2007 the Company made debt repayments of $33.9 million and paid dividends on common stock of $22.3 million.
Dividend
NorthWestern’s Board of Directors declared a quarterly common stock dividend of 33 cents, payable on Sept. 30, 2008, to common shareholders of record as of Sept. 15, 2008.
2008 Earnings Outlook
Northwestern reaffirms its estimate for earnings per share in 2008 to be in the range of
$1.60 - $1.75 per fully diluted share. The guidance assumptions for 2008 include:
| • | Impact of rate relief in the Company’s service territories; |
| • | Decreased lease expense and increased depreciation and interest expense related to the purchase of the previously leased interest in Colstrip Unit 4; |
| • | Lower average pricing on forward sales contracts and anticipated output volumes of 1.7 million megawatt hours at Colstrip Unit 4; |
| • | Fully diluted average shares outstanding of 39.5 million; and |
| • | Normal weather in the Company’s electric and natural gas service territories for 2008. |
The Company plans to update guidance, if appropriate, after the financial results of the third quarter of 2008 and when there is more clarity on the Company’s share buyback program.
Company Hosting Investor Conference Call
NorthWestern will host an investor conference call today (July 31) at 11:00 am Eastern Time (10:00 a.m. Central Time) to review its financial results for the quarter ended June 30, 2008.
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 5
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 July 31, 2008, through August 31, 2008, at 800-475-6701, access code 954803.
About NorthWestern Energy
NorthWestern Energy is one of the largest providers of electricity and natural gas in the Upper Midwest and Northwest, serving approximately 650,000 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 “2008 Earnings 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 additional 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; |
| • | unanticipated 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; |
| • | 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 our service territories. |
In addition, we may not be able to complete the proposed Colstrip Unit 4 transaction due to a number of factors, including the failure to obtain regulatory approvals, the MPSC issues an order providing the Colstrip Unit 4 interest will be included in NorthWestern’s rate base, the exercise by existing owners of rights of first refusal, the occurrence of a material adverse effect, or failure to satisfy other closing conditions. 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 Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 6
NORTHWESTERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands)
|
|
| June 30, |
|
| December 31, |
| |
|
|
| (Unaudited) |
|
|
|
| |
ASSETS |
|
|
|
|
|
|
| |
Current Assets |
| $ | 284,523 |
| $ | 278,354 |
| |
Property, Plant, and Equipment, Net |
|
| 1,798,735 |
|
| 1,770,880 |
| |
Goodwill |
|
| 355,128 |
|
| 355,128 |
| |
Regulatory Assets |
|
| 113,031 |
|
| 123,041 |
| |
Other Noncurrent Assets |
|
| 19,236 |
|
| 19,977 |
| |
Total Assets |
| $ | 2,570,653 |
| $ | 2,547,380 |
| |
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
| |
Current Maturities of Long-term Debt and Capital Leases |
| $ | 21,121 |
| $ | 21,006 |
| |
Current Liabilities |
|
| 324,165 |
|
| 300,833 |
| |
Long-term Capital Leases |
|
| 37,412 |
|
| 38,002 |
| |
Long-term Debt |
|
| 744,432 |
|
| 787,360 |
| |
Noncurrent Regulatory Liabilities |
|
| 218,923 |
|
| 194,959 |
| |
Deferred Income Taxes |
|
| 100,987 |
|
| 74,046 |
| |
Other Noncurrent Liabilities |
|
| 291,648 |
|
| 308,150 |
| |
Total Liabilities |
|
| 1,738,688 |
|
| 1,724,356 |
| |
Total Shareholders’ Equity |
|
| 831,965 |
|
| 823,024 |
| |
Total Liabilities and Shareholders’ Equity |
| $ | 2,570,653 |
| $ | 2,547,380 |
| |
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 7
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in thousands, except per share amounts)
|
|
| Three Months Ended June 30, |
| Six Months Ended June 30, |
| |||||||||
|
|
|
|
|
| ||||||||||
|
|
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| |||||
OPERATING REVENUES |
| $ | 276,506 |
| $ | 259,608 |
| $ | 662,481 |
| $ | 626,173 |
| ||
COST OF SALES |
|
| 149,354 |
|
| 141,255 |
|
| 378,438 |
|
| 360,534 |
| ||
GROSS MARGIN |
|
| 127,152 |
|
| 118,353 |
|
| 284,043 |
|
| 265,639 |
| ||
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Operating, general and administrative |
|
| 53,866 |
|
| 58,677 |
|
| 113,937 |
|
| 121,125 |
| ||
Property and other taxes |
|
| 20,540 |
|
| 20,660 |
|
| 44,180 |
|
| 41,252 |
| ||
Depreciation |
|
| 21,225 |
|
| 20,793 |
|
| 42,316 |
|
| 40,687 |
| ||
TOTAL OPERATING EXPENSES |
|
| 95,631 |
|
| 100,130 |
|
| 200,433 |
|
| 203,064 |
| ||
OPERATING INCOME |
|
| 31,521 |
|
| 18,223 |
|
| 83,610 |
|
| 62,575 |
| ||
Interest Expense |
|
| (15,848 | ) |
| (14,527 | ) |
| (31,849 | ) |
| (27,747 | ) | ||
Other (Expense) Income |
|
| (161 | ) |
| 359 |
|
| 422 |
|
| 737 |
| ||
Income Before Income Taxes |
|
| 15,512 |
|
| 4,055 |
|
| 52,183 |
|
| 35,565 |
| ||
Income Tax Expense |
|
| (6,009 | ) |
| (1,621 | ) |
| (19,229 | ) |
| (13,989 | ) | ||
Net Income |
| $ | 9,503 |
| $ | 2,434 |
| $ | 32,954 |
| $ | 21,576 |
| ||
Average Common Shares Outstanding |
|
| 38,973 |
|
| 35,988 |
|
| 38,973 |
|
| 35,855 |
| ||
Basic Earnings per Average Common Share |
| $ | 0.24 |
| $ | 0.07 |
| $ | 0.85 |
| $ | 0.60 |
| ||
Diluted Earnings per Average Common Share |
| $ | 0.24 |
| $ | 0.06 |
| $ | 0.84 |
| $ | 0.57 |
| ||
Dividends Declared per Average Common Share |
| $ | 0.33 |
| $ | 0.31 |
| $ | 0.66 |
| $ | 0.62 |
| ||
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 8
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
|
| Six Months Ended June 30, |
| ||||
|
| 2008 |
|
|
| 2007 |
|
Operating Activities: |
|
|
|
|
|
|
|
Net Income | $ | 32,954 |
|
| $ | 21,576 |
|
Noncash Items |
| 73,001 |
|
|
| 58,300 |
|
Changes in Operating Assets and Liabilities |
| 18,699 |
|
|
| 56,361 |
|
Cash Provided by Operating Activities |
| 124,654 |
|
|
| 136,237 |
|
|
|
|
|
|
|
|
|
Cash Used in Investing Activities |
| (43,058 | ) |
|
| (92,263 | ) |
|
|
|
|
|
|
|
|
Cash Used in Financing Activities |
| (70,127 | ) |
|
| (45,904 | ) |
|
|
|
|
|
|
|
|
Increase (decrease) in Cash and Cash Equivalents |
| 11,469 |
|
|
| (1,930 | ) |
Cash and Cash Equivalents, beginning of period |
| 12,773 |
|
|
| 1,930 |
|
Cash and Cash Equivalents, end of period | $ | 24,242 |
|
| $ | — |
|
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 9
NORTHWESTERN CORPORATION
REGULATED SEGMENTS
REGULATED ELECTRIC SEGMENT
Three months ended June 30, 2008
(Unaudited)
|
| Results | |||||||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| Change |
| % Change | |||||||||||||
|
| (in millions) |
|
| |||||||||||||||||||
Total Revenues |
| $ | 179.0 |
| $ | 170.6 |
| $ | 8.4 |
| 4.9 |
|
| ||||||||||
Total Cost of Sales |
|
| 87.2 |
|
| 87.9 |
|
| (0.7 | ) | (0.8 | ) |
| ||||||||||
Gross Margin |
| $ | 91.8 |
| $ | 82.7 |
| $ | 9.1 |
| 11.0 |
| % | ||||||||||
% GM/Rev |
| 51.3 | % |
| 48.5 | % |
|
|
|
|
|
| |||||||||||
|
| Volumes MWH | |||||||||||
|
| 2008 |
| 2007 |
| Change |
| % Change | |||||
|
| (in thousands) |
|
| |||||||||
Retail Electric |
|
|
|
|
|
|
|
|
|
| |||
Montana |
| 498 |
| 461 |
| 37 |
| 8.0 |
| % | |||
South Dakota |
| 105 |
| 103 |
| 2 |
| 1.9 |
|
| |||
Residential |
| 603 |
| 564 |
| 39 |
| 6.9 |
|
| |||
Montana |
| 756 |
| 754 |
| 2 |
| 0.3 |
|
| |||
South Dakota |
| 200 |
| 193 |
| 7 |
| 3.6 |
|
| |||
Commercial |
| 956 |
| 947 |
| 9 |
| 1.0 |
|
| |||
Industrial |
| 773 |
| 746 |
| 27 |
| 3.6 |
|
| |||
Other |
| 38 |
| 45 |
| (7 | ) | (15.6 | ) |
| |||
Total Retail Electric |
| 2,370 |
| 2,302 |
| 68 |
| 3.0 |
| % | |||
Wholesale Electric |
| 82 |
| 33 |
| 49 |
| 148.5 |
| % | |||
Average Customer Counts |
| 2008 |
| 2007 |
| Change |
| % Change | |||||
|
| (in thousands) |
|
| |||||||||
Retail Electric |
|
|
|
|
|
|
|
|
|
| |||
Montana |
| 265,820 |
| 262,209 |
| 3,611 |
| 1.4 |
| % | |||
South Dakota |
| 47,882 |
| 47,603 |
| 279 |
| 0.6 |
|
| |||
Residential |
| 313,702 |
| 309,812 |
| 3,890 |
| 1.3 |
|
| |||
Montana |
| 59,449 |
| 58,106 |
| 1,343 |
| 2.3 |
|
| |||
South Dakota |
| 11,522 |
| 11,373 |
| 149 |
| 1.3 |
|
| |||
Commercial |
| 70,971 |
| 69,479 |
| 1,492 |
| 2.1 |
|
| |||
Industrial |
| 71 |
| 70 |
| 1 |
| 1.4 |
|
| |||
Other |
| 5,559 |
| 5,699 |
| (140 | ) | (2.5 | ) |
| |||
Total Retail Electric |
| 390,303 |
| 385,060 |
| 5,243 |
| 1.4 |
| % | |||
|
| 2008 as compared with: |
| ||
Cooling Degree-Days |
| 2007 |
| Historic Average |
|
Montana |
| 37% colder |
| 21% colder |
|
South Dakota |
| 84% colder |
| 75% colder |
|
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 10
REGULATED ELECTRIC SEGMENT
Six months ended June 30, 2008
(Unaudited)
|
| Results | |||||||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| Change |
| % Change | |||||||||||||
|
| (in millions) |
|
| |||||||||||||||||||
Total Revenues |
| $ | 375.6 |
| $ | 349.1 |
| $ | 26.5 |
| 7.6 |
|
| ||||||||||
Total Cost of Sales |
|
| 190.3 |
|
| 180.7 |
|
| 9.6 |
| 5.3 |
|
| ||||||||||
Gross Margin |
| $ | 185.3 |
| $ | 168.4 |
| $ | 16.9 |
| 10.0 |
| % | ||||||||||
% GM/Rev |
| 49.3 | % |
| 48.2 | % |
|
|
|
|
|
| |||||||||||
|
| Volumes MWH | |||||||||||
|
| 2008 |
| 2007 |
| Change |
| % Change | |||||
|
| (in thousands) |
|
| |||||||||
Retail Electric |
|
|
|
|
|
|
|
|
|
| |||
Montana |
| 1,167 |
| 1,096 |
| 71 |
| 6.5 |
| % | |||
South Dakota |
| 264 |
| 251 |
| 13 |
| 5.2 |
|
| |||
Residential |
| 1,431 |
| 1,347 |
| 84 |
| 6.2 |
|
| |||
Montana |
| 1,555 |
| 1,542 |
| 13 |
| 0.8 |
|
| |||
South Dakota |
| 422 |
| 396 |
| 26 |
| 6.6 |
|
| |||
Commercial |
| 1,977 |
| 1,938 |
| 39 |
| 2.0 |
|
| |||
Industrial |
| 1,534 |
| 1,480 |
| 54 |
| 3.6 |
|
| |||
Other |
| 63 |
| 70 |
| (7 | ) | (10.0 | ) |
| |||
Total Retail Electric |
| 5,005 |
| 4,835 |
| 170 |
| 3.5 |
| % | |||
Wholesale Electric |
| 131 |
| 65 |
| 66 |
| 101.5 |
| % | |||
Average Customer Counts |
| 2008 |
| 2007 |
| Change |
| % Change | |||||
|
| (in thousands) |
|
| |||||||||
Retail Electric |
|
|
|
|
|
|
|
|
|
| |||
Montana |
| 265,962 |
| 262,191 |
| 3,771 |
| 1.4 |
| % | |||
South Dakota |
| 47,895 |
| 47,634 |
| 261 |
| 0.5 |
|
| |||
Residential |
| 313,857 |
| 309,825 |
| 4,032 |
| 1.3 |
|
| |||
Montana |
| 59,299 |
| 57,912 |
| 1,387 |
| 2.4 |
|
| |||
South Dakota |
| 11,427 |
| 11,279 |
| 148 |
| 1.3 |
|
| |||
Commercial |
| 70,726 |
| 69,191 |
| 1,535 |
| 2.2 |
|
| |||
Industrial |
| 71 |
| 71 |
| — |
| — |
|
| |||
Other |
| 5,106 |
| 5,146 |
| (40 | ) | (0.8 | ) |
| |||
Total Retail Electric |
| 389,760 |
| 384,233 |
| 5,527 |
| 1.4 |
| % | |||
|
| 2008 as compared with: |
| ||
Cooling Degree-Days |
| 2007 |
| Historic Average |
|
Montana |
| 37% colder |
| 21% colder |
|
South Dakota |
| 84% colder |
| 75% colder |
|
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 11
NORTHWESTERN CORPORATION
REGULATED NATURAL GAS SEGMENT
Three months ended June 30, 2008
(Unaudited)
|
| Results | |||||||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| Change |
| % Change | |||||||||||||
|
| (in millions) |
|
| |||||||||||||||||||
Total Revenues |
| $ | 80.5 |
| $ | 62.0 |
| $ | 18.5 |
| 29.8 |
| % | ||||||||||
Total Cost of Sales |
|
| 49.9 |
|
| 36.9 |
|
| 13.0 |
| 35.2 |
| % | ||||||||||
Gross Margin |
| $ | 30.6 |
| $ | 25.1 |
| $ | 5.5 |
| 21.9 |
| % | ||||||||||
% GM/Rev |
|
| 38.0 | % |
| 40.5 | % |
|
|
|
|
|
| ||||||||||
|
| Volumes Dekatherms | ||||||||||||
|
| 2008 |
| 2007 |
| Change |
| % Change | ||||||
|
| (in thousands) |
|
| ||||||||||
Retail Gas |
|
|
|
|
|
|
|
|
|
| ||||
Montana |
| 2,523 |
| 1,955 |
| 568 |
| 29.1 |
| % | ||||
South Dakota |
| 589 |
| 466 |
| 123 |
| 26.4 |
|
| ||||
Nebraska |
| 526 |
| 412 |
| 114 |
| 27.7 |
|
| ||||
Residential |
| 3,638 |
| 2,833 |
| 805 |
| 28.4 |
|
| ||||
Montana |
| 1,234 |
| 981 |
| 253 |
| 25.8 |
|
| ||||
South Dakota |
| 542 |
| 434 |
| 108 |
| 24.9 |
|
| ||||
Nebraska |
| 596 |
| 483 |
| 113 |
| 23.4 |
|
| ||||
Commercial |
| 2,372 |
| 1,898 |
| 474 |
| 25.0 |
|
| ||||
Industrial |
| 16 |
| 24 |
| (8 | ) | (33.3 | ) |
| ||||
Other |
| 29 |
| 20 |
| 9 |
| 45.0 |
|
| ||||
Total Retail Gas |
| 6,055 |
| 4,775 |
| 1,280 |
| 26.8 |
| % | ||||
Average Customer Counts |
| 2008 |
| 2007 |
| Change |
| % Change | ||||||
|
| (in thousands) |
|
| ||||||||||
Retail Gas |
|
|
|
|
|
|
|
|
|
| ||||
Montana |
| 155,546 |
| 152,968 |
| 2,578 |
| 1.7 |
| % | ||||
South Dakota |
| 36,498 |
| 36,527 |
| (29 | ) | (0.1 | ) |
| ||||
Nebraska |
| 36,344 |
| 36,109 |
| 235 |
| 0.7 |
|
| ||||
Residential |
| 228,388 |
| 225,604 |
| 2,784 |
| 1.2 |
|
| ||||
Montana |
| 21,770 |
| 21,308 |
| 462 |
| 2.2 |
|
| ||||
South Dakota |
| 5,760 |
| 5,732 |
| 28 |
| 0.5 |
|
| ||||
Nebraska |
| 4,519 |
| 4,513 |
| 6 |
| 0.1 |
|
| ||||
Commercial |
| 32,049 |
| 31,553 |
| 496 |
| 1.6 |
|
| ||||
Industrial |
| 305 |
| 312 |
| (7 | ) | (2.2 | ) |
| ||||
Other |
| 139 |
| 141 |
| (2 | ) | (1.4 | ) |
| ||||
Total Retail Gas |
| 260,881 |
| 257,610 |
| 3,271 |
| 1.3 |
| % | ||||
|
| 2008 as compared with: |
| ||
Heating Degree-Days |
| 2007 |
| Historic Average |
|
Montana |
| 25% colder |
| 10% colder |
|
South Dakota |
| 36% colder |
| 12% colder |
|
Nebraska |
| 44% colder |
| 10% colder |
|
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 12
NORTHWESTERN CORPORATION
REGULATED NATURAL GAS SEGMENT
Six months ended June 30, 2008
(Unaudited)
|
| Results | |||||||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| Change |
| % Change | |||||||||||||
|
| (in millions) |
|
| |||||||||||||||||||
Total Revenues |
| $ | 252.2 |
| $ | 220.2 |
| $ | 32.0 |
| 14.5 |
| % | ||||||||||
Total Cost of Sales |
|
| 171.2 |
|
| 152.1 |
|
| 19.1 |
| 12.6 |
| % | ||||||||||
Gross Margin |
| $ | 81.0 |
| $ | 68.1 |
| $ | 12.9 |
| 18.9 |
| % | ||||||||||
% GM/Rev |
|
| 32.1 | % |
| 30.9 | % |
|
|
|
|
|
| ||||||||||
|
| Volumes Dekatherms | ||||||||||||
|
| 2008 |
| 2007 |
| Change |
| % Change | ||||||
|
| (in thousands) |
|
| ||||||||||
Retail Gas |
|
|
|
|
|
|
|
|
|
| ||||
Montana |
| 8,091 |
| 6,989 |
| 1,102 |
| 15.8 |
| % | ||||
South Dakota |
| 2,196 |
| 1,992 |
| 204 |
| 10.2 |
|
| ||||
Nebraska |
| 1,931 |
| 1,794 |
| 137 |
| 7.6 |
|
| ||||
Residential |
| 12,218 |
| 10,775 |
| 1,443 |
| 13.4 |
|
| ||||
Montana |
| 3,991 |
| 3,510 |
| 481 |
| 13.7 |
|
| ||||
South Dakota |
| 1,920 |
| 1,615 |
| 305 |
| 18.9 |
|
| ||||
Nebraska |
| 1,880 |
| 1,707 |
| 173 |
| 10.1 |
|
| ||||
Commercial |
| 7,791 |
| 6,832 |
| 959 |
| 14.0 |
|
| ||||
Industrial |
| 136 |
| 96 |
| 40 |
| 41.7 |
|
| ||||
Other |
| 82 |
| 108 |
| (26 | ) | (24.1 | ) |
| ||||
Total Retail Gas |
| 20,227 |
| 17,811 |
| 2,416 |
| 13.6 |
| % | ||||
Average Customer Counts |
| 2008 |
| 2007 |
| Change |
| % Change | ||||||
|
| (in thousands) |
|
| ||||||||||
Retail Gas |
|
|
|
|
|
|
|
|
|
| ||||
Montana |
| 155,652 |
| 152,953 |
| 2,699 |
| 1.8 |
| % | ||||
South Dakota |
| 36,706 |
| 36,708 |
| (2 | ) | — |
|
| ||||
Nebraska |
| 36,616 |
| 36,441 |
| 175 |
| 0.5 |
|
| ||||
Residential |
| 228,974 |
| 226,102 |
| 2,872 |
| 1.3 |
|
| ||||
Montana |
| 21,728 |
| 21,247 |
| 481 |
| 2.3 |
|
| ||||
South Dakota |
| 5,799 |
| 5,764 |
| 35 |
| 0.6 |
|
| ||||
Nebraska |
| 4,556 |
| 4,548 |
| 8 |
| 0.2 |
|
| ||||
Commercial |
| 32,083 |
| 31,559 |
| 524 |
| 1.7 |
|
| ||||
Industrial |
| 306 |
| 315 |
| (9 | ) | (2.9 | ) |
| ||||
Other |
| 139 |
| 140 |
| (1 | ) | (0.7 | ) |
| ||||
Total Retail Gas |
| 261,502 |
| 258,116 |
| 3,386 |
| 1.3 |
| % | ||||
|
| 2008 as compared with: |
| ||
Heating Degree-Days |
| 2007 |
| Historic Average |
|
Montana |
| 14% colder |
| 3% colder |
|
South Dakota |
| 11% colder |
| 5% colder |
|
Nebraska |
| 12% colder |
| 5% colder |
|
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 13
NORTHWESTERN CORPORATION
UNREGULATED ELECTRIC SEGMENT
Three months ended June 30, 2008
(Unaudited)
|
| Results | ||||||||||||||||||||||||||
|
|
| 2008 |
|
| 2007 |
|
| Change |
| % Change | |||||||||||||||||
|
| (in millions) |
|
| ||||||||||||||||||||||||
Total Revenues |
| $ | 16.5 |
| $ | 14.6 |
| $ | 1.9 |
| 13.0 |
|
| |||||||||||||||
Total Cost of Sales |
|
| 11.6 |
|
| 4.2 |
|
| 7.4 |
| 176.2 |
|
| |||||||||||||||
Gross Margin |
| $ | 4.9 |
| $ | 10.4 |
| $ | (5.5 | ) | (52.9 | ) | % | |||||||||||||||
% GM/Rev |
|
| 29.7 | % |
| 71.2 | % |
|
|
|
|
|
| |||||||||||||||
|
| Volumes MWH | |||||||||
|
| 2008 |
| 2007 |
| Change |
| % Change | |||
|
| (in thousands) |
|
| |||||||
Wholesale Electric |
| 416 |
| 307 |
| 109 |
| 35.5 |
| % | |
NorthWestern Reports Second Quarter 2008 Financial Results
July 31, 2008
Page 14
NORTHWESTERN CORPORATION
UNREGULATED ELECTRIC SEGMENT
Six months ended June 30, 2008
(Unaudited)
|
| Results | ||||||||||||||||||||||||||
|
|
| 2008 |
|
| 2007 |
|
| Change |
| % Change | |||||||||||||||||
|
| (in millions) |
|
| ||||||||||||||||||||||||
Total Revenues |
| $ | 37.0 |
| $ | 36.8 |
| $ | 0.2 |
| 0.5 |
|
| |||||||||||||||
Total Cost of Sales |
|
| 18.7 |
|
| 8.4 |
|
| 10.3 |
| 122.6 |
|
| |||||||||||||||
Gross Margin |
| $ | 18.3 |
| $ | 28.4 |
| $ | (10.1 | ) | (35.6 | ) | % | |||||||||||||||
% GM/Rev |
|
| 49.5 | % |
| 77.2 | % |
|
|
|
|
|
| |||||||||||||||
|
| Volumes MWH | |||||||||
|
| 2008 |
| 2007 |
| Change |
| % Change | |||
|
| (in thousands) |
|
| |||||||
Wholesale Electric |
| 891 |
| 735 |
| 156 |
| 21.2 |
| % | |