NEW YORK, May 14, 2024 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: SQSP has entered into a definitive merger a ...

NEW YORK, May 09, 2024 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: Lesaka Technologies has agreed to merge wit ...

[Part I. Financial Information](index=7&type=section&id=Part%20I.%20Financial%20Information) This section provides the company's unaudited financial statements, detailed notes, and management's discussion and analysis of financial performance [Consolidated Financial Statements](index=7&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited Consolidated Balance Sheet, Statement of Income, Statement of Comprehensive Income, Statement of Cash Flows, and Statement of Equity for the quarterly period ended March 31, 2024 [Consolidated Financial Statements - Unaudited](index=7&type=section&id=Consolidated%20Financial%20Statements%20-%20Unaudited) The unaudited financial statements for Q1 2024 show decreased total operating revenue and net income attributable to ALLETE, with a slight decrease in total assets Consolidated Statement of Income Highlights (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | $403.3 | $564.9 | -28.6% | | Operating Income | $47.3 | $48.3 | -2.1% | | Net Income Attributable to ALLETE | $50.7 | $58.2 | -12.9% | | Diluted Earnings Per Share | $0.88 | $1.02 | -13.7% | Consolidated Balance Sheet Highlights (As of March 31, 2024) | Metric | March 31, 2024 (Millions) | Dec 31, 2023 (Millions) | | :--- | :--- | :--- | | Total Assets | $6,604.6 | $6,656.4 | | Total Liabilities | $3,195.6 | $3,249.3 | | Total ALLETE Equity | $2,823.0 | $2,809.6 | - Cash provided by operating activities decreased to **$60.1 million** for the three months ended March 31, 2024, from **$92.4 million** in the same period of 2023[16](index=16&type=chunk) [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide critical details supporting the financial statements, including a merger agreement, regulatory proceedings, and segment performance - On May 5, 2024, ALLETE entered into a merger agreement for **$67.00 in cash per share**, valuing the transaction at approximately **$3.9 billion**[102](index=102&type=chunk)[103](index=103&type=chunk) - Minnesota Power reached a settlement for a **$33.97 million rate increase** and a **9.78% return on equity** in its 2024 Minnesota General Rate Case[33](index=33&type=chunk) - New EPA rules regulating GHG emissions for power plants, issued April 25, 2024, will apply to ALLETE's facilities, with compliance costs potentially material[69](index=69&type=chunk)[70](index=70&type=chunk) Net Income Attributable to ALLETE by Business Segment (Q1 2024 vs Q1 2023) | Business Segment | Q1 2024 (Millions) | Q1 2023 (Millions) | | :--- | :--- | :--- | | Regulated Operations | $44.2 | $40.6 | | ALLETE Clean Energy | $3.8 | $8.5 | | Corporate and Other | $2.7 | $9.1 | | **Total** | **$50.7** | **$58.2** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Q1 2024 financial results, detailing segment performance, strategic outlook, and liquidity - Q1 2024 net income was **$50.7 million** (**$0.88/share**), down from **$58.2 million** (**$1.02/share**) in Q1 2023, impacted by a **$3.9 million** interim rate refund reserve and **$1.2 million** in merger transaction costs[111](index=111&type=chunk) - Regulated Operations net income rose to **$44.2 million** from **$40.6 million**, driven by interim rates at Minnesota Power[112](index=112&type=chunk) - ALLETE Clean Energy's net income fell to **$3.8 million** from **$8.5 million** due to outages at its Caddo and Diamond Spring wind facilities[112](index=112&type=chunk) - Corporate and Other net income decreased to **$2.7 million** from **$9.1 million**, impacted by lower earnings from solar projects and merger-related costs[113](index=113&type=chunk) [Comparison of the Three Months Ended March 31, 2024 and 2023](index=33&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20March%2031%2C%202024%20and%202023) This section details quarterly results, showing increased Regulated Operations revenue and decreased ALLETE Clean Energy revenue due to a project sale - Regulated Operations revenue increased by **$25.7 million**, driven by **$11.2 million** from interim rates, an **$8.4 million** increase in fuel adjustment clause revenue, and a **$7.8 million** increase from higher kWh sales[116](index=116&type=chunk) Regulated Utility kWh Sales (Millions) | Customer Class | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | Industrial | 1,798 | 1,658 | 8.4% | | Residential | 306 | 321 | (4.7)% | | Commercial | 338 | 347 | (2.6)% | | **Total Regulated Utility** | **3,324** | **3,150** | **5.5%** | - ALLETE Clean Energy's operating revenue decreased by **$182.4 million**, primarily due to the 2023 sale of the Northern Wind project and a network outage near the Caddo wind facility in 2024[122](index=122&type=chunk) [Outlook](index=38&type=section&id=Outlook) The company reaffirms its long-term EPS growth objective and plans significant transmission investments to support renewable energy integration - The company has a long-term objective of achieving **5% to 7%** consolidated EPS growth[129](index=129&type=chunk) - ALLETE expects to invest in major transmission projects, including the **~$3.2 billion** North Plains Connector, the **$800-$900 million** HVDC modernization, and the **~$970 million-$1.35 billion** Northland Reliability Project[140](index=140&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) - Minnesota Power has issued RFPs for up to **300 MW of solar** and **400 MW of wind energy** to comply with Minnesota's 100% carbon-free energy mandate by 2040[135](index=135&type=chunk)[136](index=136&type=chunk)[131](index=131&type=chunk) - Transaction costs related to the pending merger agreement are expected to be material for the remainder of 2024[129](index=129&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) ALLETE maintains a strong liquidity position with available credit lines, though S&P revised its outlook to negative due to the pending merger Capital Structure as of March 31, 2024 | Component | Amount (Millions) | Percentage | | :--- | :--- | :--- | | ALLETE Equity | $2,823.0 | 54% | | Non-Controlling Interest | $585.5 | 11% | | Short-Term and Long-Term Debt | $1,797.3 | 35% | | **Total** | **$5,206.3** | **100%** | - On May 7, 2024, S&P Global Ratings revised its outlook on ALLETE to negative from stable due to the pending merger, while affirming its 'BBB' issuer credit rating[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages market risks from investments, commodity prices, and interest rates, with commodity risk largely mitigated by regulatory recovery - The company's exposure to commodity price risk for its regulated utilities is significantly mitigated by regulatory frameworks allowing for the recovery of fuel and natural gas costs from customers[161](index=161&type=chunk) - A **100 basis point increase** in interest rates would result in a pre-tax interest expense increase of **$1.2 million**, based on variable rate debt outstanding as of March 31, 2024[163](index=163&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that ALLETE's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[164](index=164&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[165](index=165&type=chunk) [Part II. Other Information](index=47&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, updated risk factors, mine safety disclosures, and a list of exhibits [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding material legal and regulatory proceedings is incorporated by reference from specific notes in the Consolidated Financial Statements - Information regarding material legal and regulatory proceedings is incorporated by reference from Note 2 and Note 6 of the Consolidated Financial Statements[166](index=166&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, introducing new risks specifically related to the pending merger agreement, including completion uncertainty and transaction costs - A new set of risk factors has been introduced related to the pending merger agreement with Alloy Parent LLC[168](index=168&type=chunk) - Key merger-related risks include the possibility that the merger may not be completed, potential disruption to business operations, and substantial transaction fees and costs, which were **$1.2 million after-tax** through March 31, 2024[169](index=169&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) [Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Information concerning mine safety violations and other regulatory matters is included in Exhibit 95 of the Form 10-Q - Information regarding mine safety violations under the Federal Mine Safety and Health Act of 1977 is provided in Exhibit 95 to this Form 10-Q[174](index=174&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the Agreement and Plan of Merger and CEO/CFO certifications - The Agreement and Plan of Merger, dated May 5, 2024, is filed as Exhibit 2.1[176](index=176&type=chunk)

Group 1 - Allete (ALE) has been added to the Zacks Rank 5 (Strong Sell) List, with a 9.4% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - ASGN (ASGN) is also on the Zacks Rank 5 List, experiencing a 9.3% downward revision in the consensus estimate for its current year earnings over the last 60 days [1] - BrightSpire Capital (BRSP) has been included in the Zacks Rank 5 List, with an almost 7.2% downward revision in the consensus estimate for its current year earnings over the last 60 days [1]

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions [1] Company Summaries - **Academy Sports and Outdoors, Inc. (ASO)**: This sporting goods retailer has seen its current year earnings estimate revised downward by 8.9% over the last 60 days [1] - **ALLETE, Inc. (ALE)**: An energy company, ALLETE's current year earnings estimate has been revised downward by 7.4% over the last 60 days [1] - **Alpha Metallurgical Resources, Inc. (AMR)**: This mining company has experienced a significant downward revision of 13.4% in its current year earnings estimate over the last 60 days [1]

ANNAPOLIS, Md., Feb. 27, 2024 /PRNewswire/ -- New Energy Equity, national developer and financier of community and commercial solar projects, has named Tim Ahrens as its Senior Vice President of Development. Ahrens will be responsible for leading New Energy's strategic development, encompassing land acquisition, interconnection, and permitting. New Energy Equity has named Tim Ahrens as its Senior Vice President of Development. Post this New Energy Equity's Senior Vice President of Development, Tim Ahrens ...

ALLETE, Inc. (NYSE:ALE) Q4 2023 Earnings Conference Call February 20, 2024 10:00 AM ET Company Participants Bethany Owen - Chair, President, and Chief Executive Officer Steve Morris - Senior Vice President and Chief Financial Officer Frank Frederickson - Minnesota Power's Vice President of Customer Experience and Engineering Services Jeff Scissons - ALLETE Clean Energy's Chief Financial and Strategy Officer Conference Call Participants Julien Dumoulin Smith - Bank of America Chris Ellinghaus - Siebert Willi ...

2023 Year End Earnings Report Presentation February 20, 2024 Cautionary Statements Any statements contained in this presentation and statements that ALLETE, Inc. representatives may make orally in connection with this pres ...

Company Performance - Allete reported quarterly earnings of $0.89 per share, missing the Zacks Consensus Estimate of $0.93 per share, and down from $0.90 per share a year ago, representing an earnings surprise of -4.30% [1] - The company posted revenues of $402.7 million for the quarter ended December 2023, missing the Zacks Consensus Estimate by 9.25%, and down from $425.8 million year-over-year [1] - Over the last four quarters, Allete has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [1] Market Performance - Allete shares have lost about 4.2% since the beginning of the year, while the S&P 500 has gained 4.9% [2] - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.26 on revenues of $584.61 million, and for the current fiscal year, it is $4.14 on revenues of $1.99 billion [4] - The Utility - Electric Power industry is currently in the top 45% of Zacks industries, suggesting that it has a favorable outlook compared to the bottom 50% [4] - Algonquin Power & Utilities, another company in the same industry, is expected to report results for the quarter ended December 2023 on March 8 [4]

DULUTH, Minn.--(BUSINESS WIRE)--ALLETE, Inc. (NYSE: ALE) today reported 2023 earnings of $4.30 per share on net income of $247.1 million and operating revenue of $1.9 billion. Reported results from 2022 were $3.38 per share on net income of $189.3 million and operating revenue of $1.6 billion. “We are very pleased with our solid financial results in 2023 and our team’s execution of strategic initiatives that will drive strong earnings growth and investment in clean energy for years to come,” said ALLETE ...