EXHIBIT 99.1
| [LOGO] | News Release NYSE:NOR |
Contacts:
Investors/Media:
Roger Schrum
605-978-2848
roger.schrum@northwestern.com
NORTHWESTERN REPORTS THIRD QUARTER 2002 EARNINGS
OF 25 CENTS PER SHARE FROM CONTINUING OPERATIONS
OPERATING INCOME FOR NINE MONTHS 2002 INCREASES TO $129.0 MILLION;
CASH FLOWS FROM CONTINUING OPERATIONS REACH $109.5 MILLION
BOARD DECLARES QUARTERLY DIVIDEND UNCHANGED AT 313/4 CENTS
SIOUX FALLS, S.D. — Nov. 7, 2002 — NorthWestern Corporation (NYSE:NOR) today reported third quarter 2002 income from continuing operations of $14.6 million, or 25 cents per diluted share, compared with $14.1 million, or 52 cents per diluted share in the third quarter of 2001. For the nine months that ended Sept. 30, 2002, income from continuing operations was $59.5 million, or $1.38 per diluted share, compared with $40.1 million, or $1.47 per diluted share during the prior year period.
Operating income from continuing operations for the third quarter of 2002 was $45.5 million, compared with an operating loss of $12.1 million in the third quarter of 2001. For the nine months ended Sept. 30, 2002, operating income from continuing operations was $129.0 million, compared with an operating loss of $52.5 million in the nine-month period in 2001.
"Our year-over-year operating income for the third quarter of 2002 benefited from continued strong performance from our regulated energy business and improvement from our communications business," said Merle D. Lewis, chairman and chief executive officer. "NorthWestern continues to focus on operational excellence initiatives that maximize free cash flow by driving improved performance from our energy and communications businesses through enhanced efficiencies and asset optimization. We are also working to further improve our financial position by monetizing non-strategic assets. By increasing free cash flow and monetizing non-strategic assets, we will continue executing our plan to increase liquidity."
Revenues for the third quarter of 2002 were $509.3 million, compared with $398.7 million in the same quarter in 2001. For the nine months ended Sept. 30, 2002, revenues were $1.51
NorthWestern Reports 25 Cents from Continuing Operations;
Board Declares Quarterly Dividend Unchanged at 313/4 Cents
Nov. 7, 2002
Page 2
billion, compared with $1.35 billion for the same period in 2001. Revenues from continuing operations increased during the third quarter and the nine-month period of 2002 due to the addition of NorthWestern Energy's operations in Montana, which was partially offset by decreased communications revenues resulting from continuing soft market conditions and efforts to focus on higher-margin recurring sales.
Cash flows from continuing operations for the nine-month period of 2002 were $109.5 million, compared with $106.0 million during the nine-month period of 2001. Cash flows from continuing operations increased $52.2 million during the third quarter of 2002 from the second quarter of 2002.
NorthWestern completed an offering of 10 million common shares that raised $83.1 million in net proceeds in October 2002 as part of its ongoing equity program to enhance balance sheet strength by reducing debt and to favorably impact financial ratios. As of Nov. 6, 2002, NorthWestern had in excess of $165 million in cash and cash equivalents and availability on an existing revolving credit facility. Also, NorthWestern's total debt has decreased by approximately $85 million since Sept. 30, 2002.
Dividend Declaration
NorthWestern's Board of Directors declared a quarterly dividend of 313/4 cents per share on the company's common stock, payable Nov. 15, 2002, to shareholders of record on Nov. 15, 2002. The board's action leaves the dividend unchanged with a current annual rate of $1.27 per share.
Continuing Business Operating Results
NorthWestern's electric and natural gas business, NorthWestern Energy reported improved results in the third quarter of 2002, with operating income of $37.4 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $52.9 million, compared with operating income of $10.6 million and EBITDA of $14.7 million in the third quarter of 2001. For the nine months ended Sept. 30, 2002, operating income was $116.2 million and EBITDA was $160.3 million, compared with operating income of $41.8 million and EBITDA of $54.0 million for the same period of 2001. Revenues for the third quarter of 2002 were $182.4 million, compared with $38.8 million for the same period of 2001. Revenues for the nine months of 2002 were $531.1 million, compared with $204.2 million in the same period in 2001. NorthWestern Energy's results during the third quarter and for eight months of the nine-month period of 2002 include the Montana energy operations, which were acquired in February 2002. For the nine-
NorthWestern Reports 25 Cents from Continuing Operations;
Board Declares Quarterly Dividend Unchanged at 313/4 Cents
Nov. 7, 2002
Page 3
month period of 2002, revenues would have increased by $61.5 million if January's results from Montana had been included.
"We are pleased by the continued strong performance of our electric and natural gas operations as we recorded improved retail electric volumes during the third quarter. The successful integration of our recently acquired Montana energy operations with our South Dakota and Nebraska operations is providing improved reliability and service to our 590,000 customers, while producing outstanding operating results," said Richard R. Hylland, NorthWestern's president and chief operating officer. "More than 70 percent of NorthWestern's operating income and EBITDA comes from these stable, regulated electric and natural gas businesses."
Hylland pointed out that NorthWestern Energy's electric operations were recognized as the 2002 winner of the prestigious ReliabilityOne Award, for best overall reliability of an electric utility in the Plains Region of the United States by the New York-based PA Consulting Group. This was the second time in three years that NorthWestern Energy has received the ReliabilityOne Award. The award will be presented to the company in a ceremony on Nov. 14, 2002, in New York.
"We are extremely pleased to be recognized for having the most reliable electric operations in our region," said Mike Hanson, NorthWestern Energy's president and chief executive officer. "Service reliability is vital to our customers and we extend a heartfelt congratulations to the many team members who work so hard each day to keep our electric operations functioning at peak performance."
Expanets, NorthWestern's communications services business and the nation's largest communications solutions provider to the mid-market, continued to demonstrate improved results during the third quarter of 2002 with operating income of $8.7 million and EBITDA of $22.6 million, compared with an operating loss of $18.8 million and negative EBITDA of $6.1 million for the third quarter of 2001. For the nine months ended Sept. 30, 2002, Expanets reported operating income of $17.0 million and EBITDA of $56.2 million, compared with an operating loss of $82.1 million and negative EBITDA of $45.9 million for the same period of 2001. Revenues for the third quarter of 2002 were $183.3 million and for the nine months of 2002 were $595.5 million. Revenues declined $61.2 million and $219.0 million for third quarter and nine months of 2002, respectively, compared with the same periods in 2001. The decline in
NorthWestern Reports 25 Cents from Continuing Operations;
Board Declares Quarterly Dividend Unchanged at 313/4 Cents
Nov. 7, 2002
Page 4
revenues was due in part to continued soft communications market conditions and Expanets' increased focus on higher-margin sales.
"For the third consecutive quarter, Expanets posted improvement in year-over-year operating income and EBITDA performance. During the nine months ended Sept. 30, 2002, Expanets has increased operating income by $99.1 million and EBITDA by $102.1 million over the same period in 2001. This positive trend is a result of Expanets' continued ability to effectively respond to challenging market conditions by reducing its general and administrative costs, capitalizing on its current market opportunities and focusing on higher-margin services such as maintenance contract sales," Hylland said. "As a result, Expanets has improved gross margins as a percentage of revenues to 44.2 percent in the third quarter of 2002 and 42.3 percent for the nine months of 2002, compared with gross margins as a percentage of revenues of 41.4 percent for the third quarter of 2001 and 36.6 percent for the nine months of 2001. Expanets maintained a trend of reducing selling, general and administrative (SG&A) expenses as a percentage of revenues in the third quarter of 2002 to 31.9 percent, from 43.9 percent of revenues in the third quarter of 2001."
Blue Dot, NorthWestern's heating, ventilation and air conditioning services business, reported third quarter 2002 operating income of $2.8 million and EBITDA of $4.3 million, compared with an operating loss of $1.1 million and EBITDA of $3.2 million for the same period of 2001. Revenues for the third quarter of 2002 were $131.9 million, compared with $111.3 million in the third quarter of 2001.
In overview, Hylland said, "NorthWestern's management is continuing to focus on improving efficiencies through our targeted operational excellence initiatives. These initiatives are resulting in significant annualized SG&A reductions in 2002 and additional improvements are targeted for 2003. We will also continue to focus on enhancing customer service capabilities and driving internal revenue growth."
Tax Benefit
NorthWestern recorded a tax benefit of $5.8 million or 21 cents per share in the third quarter of 2002, primarily from a change in a tax valuation allowance.
Discontinued Operations
Consistent with its previously announced strategy to focus on its core energy and communications businesses, NorthWestern adopted discontinued operations accounting for
NorthWestern Reports 25 Cents from Continuing Operations;
Board Declares Quarterly Dividend Unchanged at 313/4 Cents
Nov. 7, 2002
Page 5
CornerStone Propane Partners, L.P. in the first quarter of 2002 following the partnership's decision to pursue strategic options and financial restructuring. Recently, in connection with its restructuring, CornerStone's board of directors approved amendments to the partnership's agreements, and NorthWestern contributed to CornerStone its interests in the partnership thereby relinquishing its remaining equity interest to the partnership. As a result of these actions, NorthWestern will no longer be required to consolidate CornerStone for financial reporting purposes after Nov. 1, 2002. As previously reported, NorthWestern has been evaluating CornerStone's restructuring and any impact it would have on the remaining financial arrangements it has with the partnership. In connection with the deconsolidation of CornerStone, NorthWestern recorded a non-cash after-tax charge of $55.9 million or $2.04 per share for the third quarter of 2002.
Including the charge for discontinued operations, NorthWestern had a third quarter 2002 net loss of $49.1 million, or $1.79 per diluted share, compared with net income of $8.6 million, or 36 cents per diluted share in the third quarter of 2001. Including discontinued operations and a previous extraordinary charge in the nine months ended Sept. 30, 2002, NorthWestern had a net loss of $76.6 million, or $2.80 per diluted share, compared with net income of $34.3 million, or $1.44 per diluted share in the same period of 2001.
2002 Forecast Update
According to Kipp D. Orme, NorthWestern's chief financial officer, NorthWestern Energy remains on target to meet previously announced EBITDA targets for 2002 of between $225 million and $235 million, which excludes $22 million in EBITDA from January 2002 results from Montana operations. However, continued soft market conditions in the communications sector is expected to reduce Expanets' targeted 2002 EBITDA to $73 million to $80 million range. Blue Dot is also targeting 2002 EBITDA of $13 million to $16 million.
As a result of these lower projections and after adjusting for the October 2002 offering of additional common shares, NorthWestern is forecasting full-year earnings per share from continuing operations in the range of $1.50 to $1.60 per share, compared to current consensus market forecasts of $2.30 per share.
NorthWestern intends to conduct a webcast presentation for interested investors live over NorthWestern's Web site on Tuesday, Dec. 3, 2002, during which time a further update of 2002 activities and expectations for 2003 will be discussed. Further information will be forthcoming regarding the details of the webcast.
NorthWestern Reports 25 Cents from Continuing Operations;
Board Declares Quarterly Dividend Unchanged at 313/4 Cents
Nov. 7, 2002
Page 6
Third Quarter Conference Call
As previously announced, NorthWestern will hold a conference call with interested investors today at 9 a.m. Central time. The conference call will be webcast live via NorthWestern's Web site at www.northwestern.com or at www.companyboardroom.com.
About NorthWestern
NorthWestern Corporation, aFORTUNE 500 company, is a leading provider of services and solutions to more than 2 million customers across America in the energy and communications sectors. NorthWestern's partner businesses include NorthWestern Energy, a provider of electricity, natural gas and related services to customers in Montana, Nebraska and South Dakota; Expanets, the largest mid-market provider of networked communications solutions and services in the United States; and Blue Dot, a leading provider of air conditioning, heating, plumbing and related services.
Forward-Looking Statements
STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: All statements contained herein, as well as statements made in press releases and oral statements that may be made by us or by officers, directors or employees acting on our behalf, that are not statements of historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Among the factors that could cause our actual results or outcomes to differ materially are: the adverse impact of weather conditions and seasonal fluctuations; unscheduled generation outages, maintenance or repairs; unanticipated changes to fossil fuel or gas supply costs or availability due to higher demand, shortages, transportation problems or other developments; developments in the federal and state regulatory environment and the terms associated with obtaining regulatory approval and rate orders; costs associated with environmental liabilities and compliance with environmental laws; the rate of growth and economic conditions in our service territories and those of our subsidiaries; the speed and degree to which competition enters the industries and markets in which our businesses operate; the timing and extent of changes in interest rates and fluctuations in energy-related commodity prices; risks
NorthWestern Reports 25 Cents from Continuing Operations;
Board Declares Quarterly Dividend Unchanged at 313/4 Cents
Nov. 7, 2002
Page 7
associated with acquisitions, transition and integration of acquired companies, including NorthWestern Energy, L.L.C. and the Growing and Emerging Markets Division of Lucent Technologies, Inc., and the implementation of information systems and realization of efficiencies in excess of any related restructuring charges; a lack of minority interest basis, which requires us to recognize an increased share of operating losses at certain of our subsidiaries; our ability to recover transition costs; disallowance by the Montana Public Service Commission of the recovery of the costs incurred in entering into our default supply portfolio contracts while we are required to act as the "default supplier"; disruptions and adverse effects in the capital market due to the changing economic environment; our credit ratings with Moody's, Standard & Poor's and Fitch; potential delays in financings or Securities and Exchange Commission filings because we changed auditors; our substantial indebtedness, which could limit our operating flexibility and ability to borrow additional funds; our ability to obtain additional capital to refinance our indebtedness that is scheduled to mature and for working capital purposes; changes in customer usage patterns and preferences; possible future actions and developments of CornerStone Propane Partners L.P.; and changing conditions in the economy and capital markets and other factors identified from time to time in our filings with the SEC. This news release should be read in conjunction with our Annual Report on Form 10-K for 2001, as amended, and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K, which can be located at www.sec.gov or requested from the Company.
Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors.
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NorthWestern Corporation Reports Third Quarter Results
Nov. 7, 2002
Page 8
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (In Thousands, Except Per Share Amounts)
| | Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2002 | 2001 | 2002 | 2001 | ||||||||||
| Operating Revenues | $ | 509,300 | $ | 398,705 | $ | 1,505,065 | $ | 1,353,143 | ||||||
| Cost of Sales | 260,696 | 233,108 | 792,127 | 843,564 | ||||||||||
| Gross Margin | 248,604 | 165,597 | 712,938 | 509,579 | ||||||||||
| Operating Expenses: | ||||||||||||||
| Selling, general and administrative | 170,950 | 156,153 | 491,931 | 499,694 | ||||||||||
| Depreciation | 24,124 | 10,350 | 70,083 | 29,077 | ||||||||||
| Amortization of intangibles | 7,981 | 11,228 | 21,911 | 33,279 | ||||||||||
| 203,055 | 177,731 | 583,925 | 562,050 | |||||||||||
| Operating Income (Loss) | 45,549 | (12,134 | ) | 129,013 | (52,471 | ) | ||||||||
| Interest Expense | (34,715 | ) | (11,597 | ) | (87,464 | ) | (35,679 | ) | ||||||
| Investment Income and Other | 982 | 1,274 | (821 | ) | 4,127 | |||||||||
| Income (Loss) before Income Taxes and Minority Interests | 11,816 | (22,457 | ) | 40,728 | (84,023 | ) | ||||||||
| Benefit (Provision) for Income Taxes | 2,804 | 1,222 | (4,273 | ) | 13,115 | |||||||||
| Income (Loss) before Minority Interests | 14,620 | (21,235 | ) | 36,455 | (70,908 | ) | ||||||||
| Minority Interests | — | 35,305 | 23,014 | 110,998 | ||||||||||
| Income from Continuing Operations | 14,620 | 14,070 | 59,469 | 40,090 | ||||||||||
| Discontinued Operations, Net of Tax and Minority Interests | (55,937 | ) | (3,798 | ) | (101,023 | ) | (649 | ) | ||||||
| Income (Loss) before Extraordinary Item | (41,317 | ) | 10,272 | (41,554 | ) | 39,441 | ||||||||
| Extraordinary Item, Net of Tax of $7,241 | — | — | (13,447 | ) | — | |||||||||
| Net Income (Loss) | (41,317 | ) | 10,272 | (55,001 | ) | 39,441 | ||||||||
| Minority Interests on Preferred Securities of Subsidiary Trusts | (7,474 | ) | (1,650 | ) | (21,173 | ) | (4,950 | ) | ||||||
| Dividends on Cumulative Preferred Stock | (295 | ) | (48 | ) | (391 | ) | (144 | ) | ||||||
| Earnings (Loss) on Common Stock | $ | (49,086 | ) | $ | 8,574 | $ | (76,565 | ) | $ | 34,347 | ||||
| Average Common Shares Outstanding | 27,397 | 23,706 | 27,397 | 23,604 | ||||||||||
| Earnings (Loss) Per Average Common Share | ||||||||||||||
| Continuing operations | $ | 0.25 | $ | 0.52 | $ | 1.38 | $ | 1.48 | ||||||
| Discontinued operations | (2.04 | ) | (0.16 | ) | (3.69 | ) | (0.03 | ) | ||||||
| Extraordinary item | — | — | (0.49 | ) | — | |||||||||
| Basic | $ | (1.79 | ) | $ | 0.36 | $ | (2.80 | ) | $ | 1.45 | ||||
| Continuing operations | $ | 0.25 | $ | 0.52 | $ | 1.38 | $ | 1.47 | ||||||
| Discontinued operations | (2.04 | ) | (0.16 | ) | (3.69 | ) | (0.03 | ) | ||||||
| Extraordinary item | — | — | (0.49 | ) | — | |||||||||
| Diluted | $ | (1.79 | ) | $ | 0.36 | $ | (2.80 | ) | $ | 1.44 | ||||
NorthWestern Corporation Reports Third Quarter Results
Nov. 7, 2002
Page 9
NORTHWESTERN CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands)
| | September 30, 2002 | December 31, 2001 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| | (unaudited) | ||||||||
| ASSETS | |||||||||
| Current Assets: | |||||||||
| Cash and cash equivalents | $ | 75,214 | $ | 37,158 | |||||
| Accounts receivable, net | 359,002 | 260,485 | |||||||
| Inventories | 85,791 | 79,719 | |||||||
| Other | 81,023 | 69,487 | |||||||
| Current assets of discontinued operations | 86,846 | 181,697 | |||||||
| Total current assets | 687,876 | 628,546 | |||||||
Property, Plant and Equipment, Net | 1,798,334 | 496,241 | |||||||
Goodwill and Other Intangible Assets, Net | 656,554 | 640,590 | |||||||
Other: | |||||||||
| Investments | 83,257 | 62,959 | |||||||
| Regulatory assets | 94,125 | 20,415 | |||||||
| Deferred tax asset | 20,570 | 17,374 | |||||||
| Other | 82,461 | 73,413 | |||||||
| Noncurrent assets of discontinued operations | 643,177 | 695,197 | |||||||
| Total assets | $ | 4,066,354 | $ | 2,634,735 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current Liabilities: | |||||||||
| Current maturities of long-term debt | $ | 25,364 | $ | 155,000 | |||||
| Current maturities of long-term debt—nonrecourse | 6,133 | 22,817 | |||||||
| Short-term debt—nonrecourse | 67,589 | 178,628 | |||||||
| Accounts payable | 80,427 | 122,266 | |||||||
| Accrued expenses | 415,750 | 216,345 | |||||||
| Current liabilities of discontinued operations | 737,834 | 230,070 | |||||||
| Total current liabilities | 1,333,097 | 925,126 | |||||||
Long-term Debt | 1,609,119 | 373,350 | |||||||
| Long-term Debt of Subsidiaries—nonrecourse | 56,670 | 37,999 | |||||||
| Other Noncurrent Liabilities | 387,947 | 75,040 | |||||||
| Noncurrent Liabilities & Minority Interests of Discontinued Operations | — | 605,325 | |||||||
| Total liabilities | 3,386,833 | 2,016,840 | |||||||
Minority Interests | 10,333 | 30,067 | |||||||
Preferred Stock, Preference Stock and Preferred Securities: | |||||||||
| Preferred stock—41/2% series | — | 2,600 | |||||||
| Redeemable preferred stock—61/2% series | — | 1,150 | |||||||
| Preference stock | — | — | |||||||
| Corporation obligated mandatorily redeemable preferred securities of subsidiary trusts | 370,250 | 187,500 | |||||||
| Total preferred stock, preference stock and preferred securities | 370,250 | 191,250 | |||||||
Shareholders' Equity: | |||||||||
| Common stock, par value $1.75; authorized 50,000,000 shares; issued and outstanding 27,396,762 | 47,942 | 47,942 | |||||||
| Paid-in capital | 240,936 | 240,797 | |||||||
| Treasury stock, at cost | (3,451 | ) | (3,681 | ) | |||||
| Retained earnings | 9,650 | 112,307 | |||||||
| Accumulated other comprehensive income (loss) | 3,861 | (787 | ) | ||||||
| Total shareholders' equity | 298,938 | 396,578 | |||||||
| Total liabilities and shareholders' equity | $ | 4,066,354 | $ | 2,634,735 | |||||
NorthWestern Corporation Reports Third Quarter Results
Nov. 7, 2002
Page 10
NORTHWESTERN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (In Thousands)
| | Nine Months Ended September 30 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| | 2002 | 2001 | |||||||
| Operating Activities: | |||||||||
| Net income (loss) | $ | (55,001 | ) | $ | 39,441 | ||||
| Items not affecting cash: | |||||||||
| Depreciation | 70,083 | 29,077 | |||||||
| Amortization | 21,911 | 33,279 | |||||||
| Loss on discontinued operations | 101,023 | 649 | |||||||
| Extraordinary item, net of taxes | 13,447 | ||||||||
| Deferred income taxes | (8,972 | ) | (458 | ) | |||||
| Minority interests in net losses of consolidated subsidiaries | (23,014 | ) | (110,998 | ) | |||||
| Changes in operating assets and liabilities, net of acquisitions: | |||||||||
| Accounts receivable | (14,154 | ) | 15,176 | ||||||
| Inventories | 11,212 | 10,772 | |||||||
| Other current assets | 17,072 | (11,763 | ) | ||||||
| Accounts payable | (65,616 | ) | 47,588 | ||||||
| Accrued expenses | 26,483 | 27,516 | |||||||
| Change in noncurrent assets | 16,998 | 21,525 | |||||||
| Change in noncurrent liabilities | (13,979 | ) | 3,801 | ||||||
| Other, net | 11,958 | 360 | |||||||
| Cash flows provided by continuing operations | 109,451 | 105,965 | |||||||
| Change in net assets of discontinued operations | (51,713 | ) | (1,322 | ) | |||||
| Cash flows provided by operating activities | 57,738 | 104,643 | |||||||
Investment Activities: | |||||||||
| Property, plant and equipment additions | (55,183 | ) | (33,109 | ) | |||||
| Proceeds from sale of assets | 22,482 | ||||||||
| Sale (purchase) of noncurrent investments and assets, net | (728 | ) | (5,422 | ) | |||||
| Acquisitions and growth expenditures, net of cash received | (570,811 | ) | (56,639 | ) | |||||
| Cash flows used in investing activities | (604,240 | ) | (95,170 | ) | |||||
Financing Activities: | |||||||||
| Dividends on common and preferred stock | (26,206 | ) | (21,213 | ) | |||||
| Minority interest on preferred securities of subsidiary trusts | (21,173 | ) | (4,950 | ) | |||||
| Redemption of preferred stock | (3,750 | ) | — | ||||||
| Issuance of long-term debt | 719,118 | — | |||||||
| Issuance of preferred securities of subsidiary trusts | 117,750 | — | |||||||
| Repayment of long-term debt | (158,687 | ) | (5,000 | ) | |||||
| Line of credit (repayments) borrowings, net | 99,000 | 91,700 | |||||||
| Financing costs | (35,266 | ) | |||||||
| Subsidiary repurchase of minority interests | (16,499 | ) | (16,524 | ) | |||||
| Line of credit repayments of subsidiaries, net | (12,863 | ) | (15,794 | ) | |||||
| Issuance of nonrecourse subsidiary debt | 20,179 | ||||||||
| Repayment of nonrecourse subsidiary debt | (121,943 | ) | (15,020 | ) | |||||
| Proceeds from termination of hedge | 24,898 | ||||||||
| Cash flows provided by financing activities | 584,558 | 13,199 | |||||||
Increase in Cash and Cash Equivalents | 38,056 | 22,672 | |||||||
| Cash and Cash Equivalents, beginning of period | 37,158 | 43,385 | |||||||
| Cash and Cash Equivalents, end of period | $ | 75,214 | $ | 66,057 | |||||
NorthWestern Corporation Reports Third Quarter Results
Nov. 7, 2002
Page 11
Nine Months Ended September 30, 2002
| | PARENT COMPANY | | | | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Electric | Natural Gas | Total Electric & Natural Gas | All Other | Total Parent Company | Communications | HVAC | Total | |||||||||||||||||
| Operating Revenues | $ | 370,203 | $ | 160,873 | $ | 531,076 | $ | 34,343 | $ | 565,419 | $ | 595,463 | $ | 344,183 | $ | 1,505,065 | |||||||||
| Cost of Sales | 130,024 | 86,988 | 217,012 | 13,026 | 230,038 | 343,657 | 218,432 | 792,127 | |||||||||||||||||
| Gross Margin | 240,179 | 73,885 | 314,064 | 21,317 | 335,381 | 251,806 | 125,751 | 712,938 | |||||||||||||||||
Selling, general and administrative | 116,041 | 37,748 | 153,789 | 24,397 | 178,186 | 195,644 | 118,101 | 491,931 | |||||||||||||||||
| Depreciation | 35,827 | 8,226 | 44,053 | 2,644 | 46,697 | 17,586 | 5,800 | 70,083 | |||||||||||||||||
| Goodwill & intangibles amortization | — | — | — | 19 | 19 | 21,606 | 286 | 21,911 | |||||||||||||||||
| Operating Income (Loss) | 88,311 | $ | 27,911 | $ | 116,222 | (5,743 | ) | 110,479 | 16,970 | 1,564 | 129,013 | ||||||||||||||
Interest expense | (54,410 | ) | (10,713 | ) | (65,123 | ) | (22,098 | ) | (243 | ) | (87,464 | ) | |||||||||||||
| Investment income and other | 2,087 | (3,008 | ) | (921 | ) | 15 | 85 | (821 | ) | ||||||||||||||||
| Income (loss) before taxes and minority interests | 63,899 | (19,464 | ) | 44,435 | (5,113 | ) | 1,406 | 40,728 | |||||||||||||||||
| Benefit (Provision) for income taxes | (13,604 | ) | 8,513 | (5,091 | ) | 1,367 | (549 | ) | (4,273 | ) | |||||||||||||||
| Income (loss) before minority interests | $ | 50,295 | $ | (10,951 | ) | $ | 39,344 | $ | (3,746 | ) | $ | 857 | $ | 36,455 | |||||||||||
Nine Months Ended September 30, 2001
| | PARENT COMPANY | | | | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Electric | Natural Gas | Total Electric & Natural Gas | All Other | Total Parent Company | Communications | HVAC | Total | |||||||||||||||||
| Operating Revenues | $ | 85,588 | $ | 118,602 | $ | 204,190 | $ | 11,891 | $ | 216,081 | $ | 814,506 | $ | 322,556 | $ | 1,353,143 | |||||||||
| Cost of Sales | 17,243 | 99,241 | 116,484 | 7,707 | 124,191 | 516,257 | 203,116 | 843,564 | |||||||||||||||||
| Gross Margin | 68,345 | 19,361 | 87,706 | 4,184 | 91,890 | 298,249 | 119,440 | 509,579 | |||||||||||||||||
Selling, general and administrative | 22,351 | 11,368 | 33,719 | 14,669 | 48,388 | 344,110 | 107,196 | 499,694 | |||||||||||||||||
| Depreciation | 9,645 | 2,591 | 12,236 | 1,407 | 13,643 | 8,558 | 6,876 | 29,077 | |||||||||||||||||
| Goodwill & intangibles amortization | — | — | — | 206 | 206 | 27,697 | 5,376 | 33,279 | |||||||||||||||||
| Operating Income (Loss) | 36,349 | $ | 5,402 | $ | 41,751 | (12,098 | ) | 29,653 | (82,116 | ) | (8 | ) | (52,471 | ) | |||||||||||
Interest expense | (6,593 | ) | (15,171 | ) | (21,764 | ) | (10,514 | ) | (3,401 | ) | (35,679 | ) | |||||||||||||
| Investment income and other | 228 | 3,281 | 3,509 | 430 | 188 | 4,127 | |||||||||||||||||||
| Income (loss) before taxes and minority interests | 35,386 | (23,988 | ) | 11,398 | (92,200 | ) | (3,221 | ) | (84,023 | ) | |||||||||||||||
| Benefit (Provision) for income taxes | (12,017 | ) | 8,559 | (3,458 | ) | 17,461 | (888 | ) | 13,115 | ||||||||||||||||
| Income (loss) before minority interests | $ | 23,369 | $ | (15,429 | ) | $ | 7,940 | $ | (74,739 | ) | $ | (4,109 | ) | $ | (70,908 | ) | |||||||||
NorthWestern Corporation Reports Third Quarter Results
Nov. 7, 2002
Page 12
Quarter Ended September 30, 2002
| | PARENT COMPANY | | | | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Electric | Natural Gas | Total Electric & Natural Gas | All Other | Total Parent Company | Communications | HVAC | Total | |||||||||||||||||
| Operating Revenues | $ | 153,461 | $ | 28,969 | $ | 182,430 | $ | 11,662 | $ | 194,092 | $ | 183,283 | $ | 131,925 | $ | 509,300 | |||||||||
| Cost of Sales | 58,864 | 12,025 | 70,889 | 3,072 | 73,961 | 102,242 | 84,493 | 260,696 | |||||||||||||||||
| Gross Margin | 94,597 | 16,944 | 111,541 | 8,590 | 120,131 | 81,041 | 47,432 | 248,604 | |||||||||||||||||
Selling, general and administrative | 44,516 | 14,117 | 58,633 | 10,762 | 69,395 | 58,424 | 43,131 | 170,950 | |||||||||||||||||
| Depreciation | 12,924 | 2,581 | 15,505 | 1,210 | 16,715 | 6,017 | 1,392 | 24,124 | |||||||||||||||||
| Goodwill & intangibles amortization | — | — | — | 1 | 1 | 7,920 | 60 | 7,981 | |||||||||||||||||
| Operating Income (Loss) | 37,157 | $ | 246 | $ | 37,403 | (3,383 | ) | 34,020 | 8,680 | 2,849 | 45,549 | ||||||||||||||
Interest expense | (22,103 | ) | (4,390 | ) | (26,493 | ) | (8,113 | ) | (109 | ) | (34,715 | ) | |||||||||||||
| Investment income and other | 962 | 83 | 1,045 | (111 | ) | 48 | 982 | ||||||||||||||||||
| Income (loss) before taxes and minority interests | 16,262 | (7,690 | ) | 8,572 | 456 | 2,788 | 11,816 | ||||||||||||||||||
| Benefit (Provision) for income taxes | 3,819 | (1,007 | ) | 2,812 | 935 | (943 | ) | 2,804 | |||||||||||||||||
| Income (loss) before minority interests | $ | 20,081 | $ | (8,697 | ) | $ | 11,384 | $ | 1,391 | $ | 1,845 | $ | 14,620 | ||||||||||||
Quarter Ended September 30, 2001
| | PARENT COMPANY | | | | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Electric | Natural Gas | Total Electric & Natural Gas | All Other | Total Parent Company | Communications | HVAC | Total | |||||||||||||||||
| Operating Revenues | $ | 26,058 | $ | 12,748 | $ | 38,806 | $ | 4,205 | $ | 43,011 | $ | 244,442 | $ | 111,252 | $ | 398,705 | |||||||||
| Cost of Sales | 6,458 | 8,806 | 15,264 | 2,733 | 17,997 | 143,325 | 71,786 | 233,108 | |||||||||||||||||
| Gross Margin | 19,600 | 3,942 | 23,542 | 1,472 | 25,014 | 101,117 | 39,466 | 165,597 | |||||||||||||||||
Selling, general and administrative | 5,447 | 3,429 | 8,876 | 3,784 | 12,660 | 107,250 | 36,243 | 156,153 | |||||||||||||||||
| Depreciation | 3,221 | 884 | 4,105 | 478 | 4,583 | 3,352 | 2,415 | 10,350 | |||||||||||||||||
| Goodwill & intangibles amortization | — | — | — | 66 | 66 | 9,288 | 1,874 | 11,228 | |||||||||||||||||
| Operating Income (Loss) | 10,932 | $ | (371 | ) | $ | 10,561 | (2,856 | ) | 7,705 | (18,773 | ) | (1,066 | ) | (12,134 | ) | ||||||||||
Interest expense | (2,236 | ) | (4,053 | ) | (6,289 | ) | (4,420 | ) | (888 | ) | (11,597 | ) | |||||||||||||
| Investment income and other | 62 | 1,030 | 1,092 | 129 | 53 | 1,274 | |||||||||||||||||||
| Income (loss) before taxes and minority interests | 8,387 | (5,879 | ) | 2,508 | (23,064 | ) | (1,901 | ) | (22,457 | ) | |||||||||||||||
| Benefit (Provision) for income taxes | (2,794 | ) | 4,025 | 1,231 | [cad228] | (9 | ) | 1,222 | |||||||||||||||||
| Income (loss) before minority interests | $ | 5,593 | $ | (1,854 | ) | $ | 3,739 | $ | (23,064 | ) | $ | (1,910 | ) | $ | (21,235 | ) | |||||||||
