OTTR - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Otter Tail Corporation's Q2 2021 Earnings Conference Call. Today's call is being recorded and we will hold a question-and-answer session after the prepared remarks. I will now turn the call over to the company for their opening comments.

Loren Hanson

Good morning, everyone, and welcome to our call. My name is Loren Hanson, and I manage Otter Tail's Investor Relations area. our XXXX announced results. we night second earnings quarter Last

the Officer. accompanying and are Kevin and Corporation's at Financial Our me available on of Chuck today. release and today Otter site slides our ottertail.com. will this Vice Web Senior Chief on recording the site complete earnings CEO; With Web Tail Tail the President Corporation's call Moug, later and be Otter our available A are call call MacFarlane, on President

Before want statements we this I we be call. will that begin, you remind to making during forward-looking

represent As the current noted on subject that Slide X, They to holds. actual or these to what statements differ of cause and uncertainties our may opinion are risks judgment future results materially.

undue these placing any So advised reliance please statements. about of on be

are update in with new due our you to to in our statements otherwise. Exchange which disclaims forward-looking Corporation or events, information, to Tail future detail described any we filings Commission, more duty revise review. encourage developments and or Securities statements Our forward-looking Otter

will remarks, CEO, and to over Tail Otter opening the call now President For Chuck Corporation's MacFarlane. Mr. turn I

Chuck MacFarlane

continues you, we support COVID. morning, Loren. to Corporation Welcome second all XXXX the Thank earnings efforts Tail Otter the everyone. quarter locations to collective serve call. of with our mitigate Good to spread

with most our rates the vaccination activity continue in to employees monitor the return to office we As case of we from working remotely, communities operate.

and follow from officials state's and also CDC, guidance OSHA. public recommendations and continue monitor to We health local the our

per half, staffing job impacts, from highs per and have supply earned Slide chain constraints, $X of related employees including supporting lows comments work in and the results. of continue $X.XX XXXX. past which increase remotely. navigating companies to on refer Throughout COVID and QX adjustments As employees a course of the pricing excellent customer that and share We're today, to increased under for is managing XXX% to managing of share the the over began year Please levels, done I X my an the our quarter, demand. X% commodity our QX

businesses Power’s financial our had our case here few had was January into per Center. his primarily QX our Energy Kevin This another detailed going of performance of quarter the C&I investments filing Astoria All by the rates Approved brief conjunction results and segment, overview COVID. second led But a of will earnings and sales $X.XX. at driven The plastic increasing Xst with increased of provide Merricourt outstanding discussion effect a results. recovery and revenues comments. electric impacts of as rate negative in which improved Minnesota interim general recover Otter more Tail from in Atation with Wind share quarter. record by from volumes customers segment

due increased supply Our demand segment $X.XX rebuild end increased earnings experienced sales manufacturing and BTD share volumes markets sales and end production market to across its to by major and issues. OEMs increased at as Plastics. strong inventories chain created depleted continue BTD per T.O. all

to last in to increase $X.XX. to XX% and of announced $X.XX in for we plastic share. is view especially per quarter share sales guidance We year’s breaking Based more to conditions the $X.XX the XXXX market positive to increasing was higher by with pipe margins strong by earnings driven historic and resin driven This record our the $X.XX. our Our segment a of guidance another raising updated be our the our over from XXXX. supply PVC pipe from return anticipate unique levels XX% per improved of range plastic diluted earnings and segment year, had resulting previously margins, prices year-to-date constraints. on to are operating performance, $X.XX share operating remainder higher This do $X.XX in

commemorate fired Turning the at of XXX this XXX others and plant's affordable Minnesota, Hoot year, of employees. plant played We dependable to generating to Lake marking fired on and and employees involved the legacy coal XXth our Hoot role Falls, retired Lake facility site. coal former in and plant, megawatt the a plant history joined Fergus vital May innovative years the end some company's generation operations reliable highlights July we in energy energy. XXst, in current generating for quarter. plant of a On

Otter is Tail Station the Slide after transmission Independent generation, grow This technology We or unit. providing complements and to not dispatch of the by and when in continue it flexible Midcontinent our MISO testing, of investments years System construction and has XX, a projects. capital two now and backstop planning years power reliable wind part On to $XXX of Astoria through MISO and allows investment generation options low is economically operating This the market. emissions. wind Operator, energy million blowing,

compared less Hoot Solar megawatts capacity a tax XX% through plant’s Hoot plans projected million is use for in XXX plant permit, screening, XXX investment existing XX% council energy allocated to emissions previously Lake Solar to Lake built output recovery Astoria management, the homes Hoot We to decommissioning. provides each than project carbon customers Minnesota the the that Lake customers interconnection eligible Station plant. vegetative July, be qualify investment Lake recently XX for the Lake Hoot to plant. and This to land on of offers unique stormwater on is XXX% Hoot in Minnesota In power Minnesota opportunity around XXXX, shown conditional be city This Lake spring, owned levels. substation be plant Lake Lake PUC for project This along with early XX. of a including Hoot credit. Lake a our will of $XX to by Falls and the future reuse transmission outlines land our request dispatchable historic project renewable Solar announced megawatts and the resource September megawatt cost our approved Hoot and generate retiring approved year. use our with approximately site, our to Hoot purchased newly coal for Hoot To us XXX% enough Slide which the for after solar’s management our rider. authorize Fergus XX,XXX

We be Safe have project XXXX. to completed secured in the and anticipate currently equipment Harbor

capacity by and is assets wind rate XX.X options agreement Ashtabula III, farm a converting As power XXXX. purchase noted wind net the with facility near going Dakota. a Slide located XX, of Ashtabula includes on This agreement we've delivered facility to III megawatt NextEra agreement from in power with the energy to power purchase Tail from for the North the farm based Energy Luverne, This factor. XXXX Otter in to system XX%

We Regulatory expect several be obtained approvals facility over in to the purchase next early the months. XXXX. will

Minnesota reliably during next in noted Slide XX plan meet XXXX We XX. integrated needs will combination resource years. on September of This plan customers' will resources be effective as cost our of the most to identify filing the next

file will the We all three in plan state jurisdictions.

As will address required EPA's plan Rule. the with Haze Minnesota by compliance PUC the Regional the

integrated shown in November XXXX. last XX. XXXX as June resource filed Minnesota on plan rate XXXX approved X, of Our of was on and Slide general case our We in filed April

in to in construction Our request earning driver was The place has been rates approved Minnesota. XXXX. this our primary our This last was base recent AFUDC rate Minnesota during Astoria period. project IRP in is the most filed Station into review and for

pension half with request customers access XX In focuses of from which This in system, approval allowing rate the information with customer and in were to Evidentiary or XX.X this in pension commission of this Xnd. substantial our benefit use, identified the input January for to The request approved drove our versus new more X.X% request energy X.X interim experience which XXXX. in and XX June Tail the by to asset reduction request. the decision years. options anticipated is continue their or and the interim law filed country. commission a million hearings April, related administrative approved on incorporating original enhancing million In X.X% our conjunction of late lower some change judge PUC discovery customer decrease by the impact is the in other to by ongoing was driver commission, depreciation X.X%. pandemic annual refinements case. rate the to Recognizing was late held reduce the increase Even recommendation expense increased. in depreciation lower that the during the request from Otter rates, new This and customers interim XXXX. filing, or of customers X.X the and power reduction a to rates done we also the agreed economic will depreciation of increase, phase early lowest September Additionally, lives wind our staff, the his request December, our million rate rates beginning borrowing a for approximately and request. the lower costs we extended to original in to issue with We to by residential scheduled expense our

anticipate transmission base between As be and by in in IRP an more of We to information and plan updating growth. calls the rate driver will expected key XX, rate a XXXX environment constructive utilities a is grow Slide shown for in on X% annual XXXX regulatory known. September MISO future after CapEx is rate forecast based regional our Minnesota filing earnings on our future as earnings and

and service agreements soybean customers be and in areas. with operational These and has loans XXXX new between water utility electric Additionally, commercially other crushing are the under the pumping entered loans industrial expected to development into XXXX.

end Industry major demand lingering inventories. staffing for OEMs segment. fabricator, impact manufacturing to be demand. and the limited customer COVID. capacity metal availability number strong slow continue experience steel and up wide Also, able our historic increased applicants. are keep rebuild by contract our could of availability to to from demand to increased pass driven their secure recover as prices with across challenged customer, in continues markets demand BTD, increased talent depleted costs OEMs. the exceeding increased XXXX manufacturing improved their Even and COVID-XX to with mills levels to sales though related to Turning continue has They all to some for impact as levels, reductions impact are steel is available material BTD production product to

in constraints resin to deliver that due remain Our Gulf have to weather that up market pipe PVC demand driven continue the plastic from February Coast from resin PVC impacted resin plants recover significantly PVC abnormally prices. segment to a high supply constraints region. continues results pipe PVC to shutdowns. cold constraints Resin as in tight due resulted extraordinary

PVC expect While the reliable to rest we and remain agile supply with resin both remain year, delivery. companies for on the time our PVC of constraints of

energy we dispatch energy will cleaner future. work a ahead, grid, We enhance customer approximately be Power and current sources by on based XX% XX% levels of toward of receive sources XXXX. XX% carbon Tail from Stone emissions modernize their renewable our reduce target our both Station, XXXX and is our energy and levels as to projected continues customers own from from Looking XXXX to innovative Big Otter Coyote generation XXXX by experiences by we

these companies below that in generating achieve nation. please while the Tail The threshold. targets lowest percentage from of assets in more will Otter thermal our consolidated revenues than residential With about of We from revenues coal note XX% from was assets rates coal, the concern revenue Corporation's of keeping XXXX. significantly growing percentage coal among XX% is

Now to I'll financial over the perspective. for it turn Kevin

Kevin Moug

good and thanks morning, Well, everyone.

an supply increased results net market resin resin increase in driven plastics segment, Second conditions constraints of of and primarily that our in by were to the XX%, prices in from up earnings resulting costs. are excess caused These sales PVC pipe well quarter XXX%. acceleration unique sales

net debt expenses of a the as and second in electric to the and was XX quarter-over-quarter, a rate Station strategy. Astoria due earnings quarter. transmission tariff base issuances expenses of rider by in the Merricourt at The due service taxes for during short-term markets. part pre-pandemic farm operating lower Station due margins. credits commercially CIP and continue retail additions, and a equity execute capacity expense. long-term end X, operating increased in wind resulting XX. revenues slow on XXXX. were as offset across second of recovered CIP to increase capitalized placement quarter scrap segment million XXXX, expenditures, with higher industrial through Steel set which shown lower million quarter Net to of in eased. in and manufacturing tax were to increased Astoria a Astoria higher has revenues. chain to due supply rate has the Scrap BTD offset Slides program maintenance for customer to expense were our new $X.X recover a creating a Dakota segment being COVID-XX resulted effective on These to higher retail property These case; collections prices sales the station. also, January higher from increased primarily interim increased increased income production rates our by from items transmission due increased due by in levels, as expense recovery $X.X $X.X record increase vegetative earned million me Station being revenues in rate the funds pricing. completion to increases million increase South and volumes operating and higher earnings primarily Minnesota its are XXXX improved largest related the customers, higher by exceed commercial $X.X due XXXX, current impacted were of levels challenges. reduction increase to to income impacted we due favorably increased And And been in compared an Merricourt spending from cost; XXXX improving of demand associated Astoria growth interest and COVID; results related lower the increased of the recovery on expense billion to $X.X in as review Let driven increase borrowings continue detailed Other see Net the mainly amounts historical operational, metal bad mill the impacting in Minnesota project to capital their retail plant revenues first parts and impact revenues to debt and in and were items provide level Merricourt the This to increased depreciation expenses, earnings revenues sales interest, net to quarter new to negatively of which all due business recent tax earnings expense economic other of construction due to used

well comparison sales due same in that higher Our to quarter material sold scrap as Cost were to on were ago. higher to higher goods increased year the passed volumes costs customers. volumes of and were a

T.O. due to to earnings product support Our sales selling, necessary our compensation net general and increased levels higher revenues. year and incentive margins, current improved resulting in production administrative related performance higher costs were gross financial horticultural and given higher to and increases costs pricing, travel BTD’s At in from Plastics, recruitment of increased improved increases volumes.

country. the Increased XXXX. pipe $X.X product Our primarily of plastic million, in sales higher pipe operating experienced. second the due segment dynamic PVC continued during across of constraints to second the earnings of was The in due XX, shutdowns by resin sales global limited compared previously the on increased which the not is This resin of of prices between volume improvement. spread, and Resin to quarter pricing pipe quarter increased margin the the significant resin sales conditions supply inventory PVC first driven with in costs. started price along excess PVC higher to is pipe XX% XXXX. contributed cost that resulted shown increase for Slide demand has significant into XXXX, and PVC the These quarter with difference resin in plant of also quarter first approximately of as the

used debt general long purposes. XXXX. be issued for and $XX $XXX corporate $XXX and Our issued offering refinance unchanged to senior this term delayed May Otter were year will Power costs in of tax The proceeds loan for of we net million drop with in quarter-over-quarter. be million million June, basically completed In be November existing of corporate to a of Tail unsecured to

generate We continue credit to and strong levels appropriate operations. of liquidity flows business our under have our to cash facilities support

midpoint exceptional that earnings per the improve. to are funded and investments continue segment. are off primary opportunities, XX% on additional $X.XX $X.XX, of raising stronger manufacturing to per end We from as than capital with organically. contributions of The to range cash flows performance The anticipated, shown of drivers improved segment to diluted at of our status $X.XX. These guidance markets earnings diluted growth us rate our our reflects in to cash look operating additional XX. expect outlook to Slide such approximate revised to of XXXX allow $X.XX flows investment share opportunities We're grow strong plastic performance. half much XXXX segment an our range as on We're per pension the XXXX be our guidance will guidance overall share along XXXX resulting plan to raising originally based also improve first continuing performance and plastic for earnings strong will share

our nor XXXX. Our not are inflation forecast will away supply they expectations that reflects in going and materially improve constraints

revised labor to order reflects continued needed volumes. of to we as Our to rates of impact wage the increase growing our look challenges guidance workforce in certain across support attract the businesses

Let our segment guidance for me contributing revised items XXXX. review the to

increased partially electric these our three for Merricourt being tax Both will levels, expect segment a rate projects associated discount and on Utility expense $XXX and We of in related and an plant increased for XXXX return case previous are rate partially these increase in that being exceed the items continue These XXXX to and assets. our in XXXX, by maintenance, to impact total offset fully jurisdictions, filed outages operational, expense maintaining were X.X% of The due our million recovery commercially Big retirement guidance Minnesota rate by debt of to expenses the have rate and rate investments of planned operating reflected with increased November Minnesota Commission Astoria investment million. the related increased approved all and Public by non-labor interim projects in $X.X the and was issuances. in property our decrease base. driven long-term has projects and plan post depreciation mechanisms O&M Stone at of interest offset to expense earnings

are on the expect inventories the higher improved strong pandemic. the end our by certainly year-to-date margins increasing for to shortages previous earnings of be year-to-date strong recovery. as all The in our recoveries and at We earnings segment our to sales to across BTD, rebuild manufacturing is continue based XXXX markets and economic continue increased indicative volumes than customers markets XXXX the created by performance to guidance end operating the fill driven

growth the challenges created if and However, be due product associated robust supply Scrap higher not could continued expected to has issues. availability prices. revenues COVID are with shortages. based more metal be for we mill on scrap constraints capacity Decreased steel labor believe higher to

to work remain keep needed increasing get steel capacity in and elevated expedited customer prices to we up on up XXXX. steel of to levels to demands high to to While expect mills improve and with levels. continue to mitigate currently continues steel the increased costs. to staffing and keep the And are struggling demand keep the impacts prices productivity to We freight lower continue demand historic above with meet

higher due million and end compared earnings manufacturing increased T. their $XX to to year for mainly O. one Plastics productivity at improving $XXX Backlog expect margins operating approximately We XXXX horticultural strong ago. million with segment enhancements. for is sales year-to-date and the markets performance,

Our reflective improving backlog of increased economy. is the

margins next are conditions market higher related into market previous during Resin for the the construction strong guidance be from the than due remain continue quarter of for PVC the higher, supplies XXXX and our Corporation tax of higher prices. increase conditions for strong to the levels sold from XXXX, are to which are first municipal pipe employee resulted to driven the the in material currently market, by by in to resin planned of We operating plastic such return resulting Tail availability export a supply potential continued and conditions, costs net sales year. unique year. resin raw rest contributions to are elevated year and benefit We supply response segment to continue expected as constraints in remainder in higher constraints. prices PVC pipes than now These XXXX market. driven has markets. the Foundation. higher six being expected expected Sales for driven feedstock than our prices to raising to more Pounds in And higher our months, expect constraints the than to the suppliers normal of costs to prices second be market guidance predicted corporate and Otter by domestic

Our XX% our XX% show electric financial earnings to and the XX% our our departure are segment. over by that in a expected coming conditions consolidated most earnings driven segment. results continue from results from clearly from being This The non per are electric electric is share to our the by the unique expected XXXX the of plastic significantly market economic not recovery businesses the in XXXX long-term. segment expected

years to contribute cash along XX% XX% allow growth of to We the the our provide investment earnings plastic also the will performance These provide our of opportunities expected and over for segments five deliver long-term. manufacturing time. reliable two flows. continue to growing long to earnings term. around It are segments revenues, The XX% over to expect organic and next over to to our electric XX% segment with continue rate overall earnings over based will

growth and dividend XX% expect X% deliver per earnings to as X% return the to share We X% compounded of base our along total yield. expected to year annual over the consisting using shareholder our XXXX of long-term, current rate with

the to earnings payout with over the grow line ratio growth, Looking XX% a in dividend dividend to forward, would share while we expect XX% per maintaining our long-term. between

ample liquidity and fund the ready take investment model credit business corporate positioned your strong ratings. We're and we balance businesses support as well serve Our to our now our grade remain with opportunities to growth questions. to rate strong base our utility sheet, at to continues

Operator

question Siebert Your from of the Chris first Instructions] line Ellinghaus goes [Operator from Williams.

Chris Ellinghaus

or expect this expect be potential, sort of earnings of XXXX, given year, that that the bigger? donation we magnitude similar we foundation The to to should be should level the to

Kevin Moug

$X.XX contribution updated the is to a share guidance a roughly for this year. Foundation potential this in included got what's We've

-- -- contributed contribution company then it's you power was to than that compared made Tail to Corporation and the last So Foundation, year foundation less this the the look year. a year at contribution the their last foundation also or between to when plastics between that Otter they

Chris Ellinghaus

confused, way talking pounds. selling The little market probably the a about describe more you're you plastics today, I'm

So ability that that the allocation or your better. the your market or suggests of is resin same

like constraints doesn't, to prices, supply sound have your I'm Does confused that resin per and some bigger that the allowing on allow -- resin competitors for that to So little is? constraints a a that's have higher me, you of problem se. mean this supply imbalance demand where or

Kevin Moug

pretty are competitors, full plants The and much on keep but to us to continue back customers, resin levels, allocations. our they

but resin the So all we could certainly getting resin the aren't getting use. we're we need we

significantly today they have in And than are inventory previous so levels lower our been years.

in what so producing and we're terms pretty getting allocation, much selling of we’re And through.

Chris Ellinghaus

you in So you where have its think demand more resin adjust coming my margins with can't years the mind to didn't supply met really be the volume really to from. February is if would have about, supply In that incremental where the market been I that able extraordinary this capacity? is prior disruption,

Kevin Moug

would it Yes, have.

Chris Ellinghaus

to the you to reason construction is that you think will thinking of resin the causing margins. normal. that simply these return demand? in a expecting of What increase meet are So combination are that about or talking supply market You're will the XXXX? to ease, factors sort a a are But there that

Kevin Moug

levels we levels historically. back the the the XXXX seen type kind to return will look to supply of normal as and we in demand more prices meet would that’s easily there. then more we're that would expecting to start high resin return to it at as meet these sales Chris, such out -- that today, to demand the that And drove we've normal margins more see that conditions then

Chris Ellinghaus

color us Can weather what you July a give looks your like? on little

Kevin Moug

has been, would normal. than it's July bit warmer little probably a say, I weather

Chuck MacFarlane

average I July. degrees think, above for we're X

Operator

question next from line Sidoti. Brian of Your from Russo comes the

Brian Russo

aer or this a competitive the more Meaning that is So a advantage expand. segment. Or competitors mean, business? market, same outsized seeing or the location, just have to margins unprecedented are do -- you competitors on resin in supply, cetera, et plastic just is now? secure outstripping you able the it right than to I when to follow-up your maybe inventory your spread all margins demand

Chuck MacFarlane

not we've the able us. the Having we that competitors announcements here, of though, said you also the significantly also first are they end as pipe be raising of to of now to We COVID as prices. with having our they maybe be during customers honor demand quarters tell prices, given not well users having out and as couple allocation, raise out we to -- raise occur well. it of seeing well that. not some needs price through supply running our would they're been raise able competitors given to as And seeing running to XXXX the side do of the resin we're to honor plants be of that who while we to go I impacting We pretty react where prices on product. just prices temporary to the our other as relates certainly competitive in in believe have a that, continue seeing terms there making their this. able starting still demands everybody revenue. since quarter ability for competitors the a to competitors are advantages certainly And that to to even to some customer shutdowns competitors seen having quickly out kept open, plants there prices prices there sales come the that end Even are There's backup with though prices and had we're raise when as saw lines we are are to is our announcements did that is as

the of So affecting market. a that's lot

Brian Russo

to prices. plastic or PVC of and material actual resin. raising your performance? relative the increase an an indication segment competitors to pipe indicator a Is So leading it's demand Meaning raw spreads widening in that increasing therefore

Kevin Moug

Brian. be, could it Well,

also We're we're announced too raise think increases seeing what price is though suppliers seeing coming I the seeing from we're prices. our competitors here. resin

Brian Russo

on spread and any Slide is? relationship XX, what share the that to willingness So spread

Kevin Moug

No.

supply We aren't able go that confidentiality our in have confidential, kind we present such suppliers, provisions of to our so down agreements that with just pathway.

Brian Russo

In think leverage water this plastic billion bipartisan infrastructure infrastructure. spend? that Is bill, there's your to segment to XX I allocated nearly

Chuck MacFarlane

have in we our forecast think not yet. that put I

We a entire of is our do areas a a US, there. Eastern lead lot But are manufacturing it'll sector that not positive, in business. to or pipe the amount replacement of put which aware I big the going bill, has of the pipe on in the think, with

Brian Russo

obviously, at And historically low. end levels dealership lot the levels, inventory are demand, BTD a inventory then or OEM segment, market of

So of revenue. because demand, just higher it they what the a growth sense your the your quarter which was second is trying can't supply customers, of like of price -- seems constraints. you're of steel, to But volume Because just in the meet versus pass a through. I'm get that revenue some reflects

a the to sold trying of the for I'm revenue? So sense of just get what's growth in versus kind line rate units top terms actual

Kevin Moug

seeing to increase for Brian, and But it break try at down you and about to helps. revenues see this compare current view, in revenues. we as our way, million we're me it $XX BTD Let if XXXX

forecasting pricing of material between this but results is XX% that's XXXX that revenues So are we in and million what our year. XX

then value XX add customers. you million there's that the as to our to relates growth we're doing will, So of, if it

Brian Russo

these chain calls, et issues, noted facing of recent I vehicles, road cetera. it's from, that It's other that off some they're supply for elsewhere not on shortages you supply customers, into go products have guess? your when end market So conference

Chuck MacFarlane

freight our product we costs you as constraints it's certainly get a to to us. ability to Brian, customers. that. lot others supply supply is are But costs I experiencing would in look just that of a some that constraint I on But we labor more product certainly to employees whether that try combination impact And have well you we're get we're hire them. to industrial a this having and think to our an of it the work all. overtime as for higher freight labor productivity. And higher our mean, then say seeing it's at improve we're I meet work help as through experiencing issue Polaris, P&L expedited We've expedited see to Toro, trying of We're relates companies. been putting customers are costs. the and impact working to demand to

Brian Russo

rate at think at Georgia? is one got the utilization plant and to in I you BTD? Minnesota What the one in

Kevin Moug

have Minnesota facility, we the I XX% While have the capacity Illinois, then Washington, general, the think, somewhere facility around Georgia we're in and level. we

Brian Russo

Coyote insight in repowering, to or switching then of et the transmission renewables, compliance surrounding Any at maybe just or environmental the And gears scenarios utility. or cetera? terms into IRP

Kevin Moug

that just in wait think September, such I we're in Those include we plan the the review in that are it now will to the Brian, and plan. And out don't MISO generally any of investments going it, IRP. of usually the we of still get right our -- we finalizing regulators and file transmission are come until what's that. first

early it's those to a So bring little out.

Operator

Karp Sophie of line the KeyBanc. from comes question from next Your

Sophie Karp

about? cash of the we needs start and My revenue plastics what translated are to of getting and the this offset sort if there buyback, the in that is your numbers. ultimately you use that performance conditions. all question strong about really market or reinvested? look special the a -- any of if Would that thinking or My driven that a you maybe is it's have we by share will, you're how sort is, flows there you is a should into? it's of should uses So is, manufacturing going unexpected, get this segments, just and guys windfall, almost at equity thinking be use question obviously So kind

Kevin Moug

I don't any needs five We we in on but year plan. the first have don't our, think the equity this call, in quarter talked about we have

right I the certainly we to now, mentioned, some to opportunity as have in our comments, additional as as look so They and to And relates think I at flows, we opening help look there. the cash funded pension stronger plans. contributions it my the status

those specifically us, plastic in allow that segment have organic have additional the growth things extra We investments we've fund that been additional additional that growth to capital us also create going that for us cash forward. looking would opportunities help at and organic

Sophie Karp

revelations at attractive? So I selling be the you considering very not maybe those point that must this will given it take segments

Kevin Moug

and to the and it’s segment, strategy continue the to plastic the between consisting continue well manufacturing we platform business we on communicate, and of the expect As utility manufacturing to we that. two performing and think execute like model

Operator

[Operator the Instructions] time. questions this over other no And at there are line phone

Chuck MacFarlane

here I'll turn to over it right. All Kevin a for second.

Kevin Moug

been I today his has Hanson, it's -- press absolute of Congratulations shareholders as Loren an us shown an advocate XXXX. since contributions Loren's cover the Manager call unwavering our and a appreciate He all to and career pleasure made. Investor I'd And to with have our Loren, Investor you. company Otter outstanding recognize got and you and Tail like that Relations we've thanks for our Yes, commitment years done have to service for He work to earnings lasting for to Otter has just that has I our outstanding here. has to he release is leading retirement. been momentous been with Relations a our last And today Tail. occasion XX here like an the announced on strong provide you on I'd group shareholders.

Tail Tail's You have It introduce also Tail Tyler. on Tyler continue Otter over Tyler of going touched I'd to Otter spent Tyler's Company investor who function our to shareholders. of retirement. eight to comes his service the business in the Welcome, Power lives in lead years. he joined planning. is where Loren like Corporation to replacing from and to Akerman, June. Otter forward experience years him positions many well us over utility relations tradition

Chuck MacFarlane

in in to fixture, and for Loren. He's mentioned, thanks, best the Kevin offer I'd Tail retirement, as All Tyler. positive XX your welcome my Investor been congratulations also to a Relations years. Otter and like

I and Corporation. here, your Tail you in for As up Otter all interest wrap questions thank

while for year-to-date outstanding to and value us and We the clean, by levels. and business, are of committed announce the provide shareholders our less focused to people, the remainder our updated improving XXXX are reliable work. results view communities our excellence provide raising solutions we generation XX% the develop customers, targeted Otter energy We and Based remain where system efforts on position live we compared affordable by investments from our for and our of joining We and own to to Our making year, that be grow our that conditions. from share you results less initiatives on long-term call. operational year-to-date Tail in with your Otter $X.XX emissions to and $X.XX of unique success. market diluted the quarter. reflect forward appreciate the to to earnings our commercial and $X.XX. interest XXXX to the you now of collective per previous people guidance our next Corporation Thank look XX% for strategic and XXXX remain achieve speaking We're our we XXXX $X.XX of Tail to carbon pleased to and Corporation strong also

Operator

this gentlemen, today's thank call. you for all and Ladies concludes conference participating. We

You disconnect. may now

Otter Tail (OTTR) 3 Aug 212021 Q2 Earnings call transcript