Otter Tail (OTTR)2025-02-18 13:34Financial Performance - Otter Tail Corporation achieved record annual diluted earnings per share of $7.17 in 2024, up from $6.88 in 2023[2] - The Electric segment generated net income of $90.96 million, a 7.7% increase from $84.42 million in 2023, despite a 0.7% decrease in operating revenues[11] - The Plastics segment reported record earnings of $201 million, driven by a 27% increase in sales volumes, although sales prices decreased by 12% compared to the previous year[17] - The Manufacturing segment experienced a 14.9% decline in operating revenues to $342.59 million, with net income dropping 36.2% to $13.68 million due to a 15% decrease in sales volumes[15] - Operating revenues for the twelve months ended December 2024 are reported at $1.331 billion, a slight decrease from $1.349 billion in 2023[33] - Net income for the twelve months ended December 2024 is $301.662 million, compared to $294.191 million in 2023, indicating a year-over-year increase[33] - Operating income for the three months ended December 2024 is $66.824 million, down from $70.080 million in the same period of 2023[33] - Total operating revenues for the twelve months ended December 2024 were $1,330,548, a decrease of 1.3% from $1,349,166 in 2023[36] - Net income for the twelve months ended December 2024 was $301,662, an increase of 2.5% compared to $294,191 in 2023[36] Cash Flow and Liquidity - Consolidated cash provided by operating activities reached a record $452.7 million in 2024, up from $404.5 million in 2023[8] - The total available liquidity as of December 31, 2024, was $606.3 million, comprising $311.6 million in credit facilities and $294.7 million in cash[9] - Cash and cash equivalents were reported at $294,651,000 in 2024, up from $230,373,000 in 2023, indicating an increase of about 27.9%[34] - Net cash provided by operating activities for the twelve months ended December 2024 was $452,731, compared to $404,499 in 2023[35] - The company reported a net change in cash and cash equivalents of $64,278 for the twelve months ended December 2024[35] Capital Expenditures and Investments - Capital expenditures for 2024 totaled $358.7 million, primarily focused on the Electric segment, with a revised 5-year capital spending plan of $1.4 billion[8] - Total capital expenditures for 2024 are projected at $359 million, with a five-year total of $1.555 billion from 2025 to 2029[27] - The Electric segment's capital expenditures for 2024 are $301 million, contributing to a total of $1.426 billion over the next five years[27] - The Manufacturing and Plastics segments' capital expenditures are projected at $129 million over the next five years, focusing on equipment upgrades and capacity expansion[27] Assets and Liabilities - Total current assets increased to $630,041,000 in 2024 from $570,170,000 in 2023, representing an increase of approximately 10.5%[34] - Total noncurrent assets rose to $3,022,041,000 in 2024, up from $2,672,398,000 in 2023, indicating a growth of about 13.1%[34] - Total assets reached $3,652,082,000 in 2024, compared to $3,242,568,000 in 2023, marking an increase of approximately 12.6%[34] - Current liabilities totaled $309,790,000 in 2024, a decrease from $309,975,000 in 2023, reflecting a slight reduction[34] - Long-term debt stood at $943,734,000 in 2024, compared to $824,059,000 in 2023, showing an increase of about 14.5%[34] - Shareholders' equity increased to $2,091,402,000 in 2024 from $1,855,553,000 in 2023, representing a growth of approximately 12.7%[34] - Regulatory assets decreased to $9,962,000 in 2024 from $16,127,000 in 2023, a decline of approximately 38.5%[34] - Inventories slightly decreased to $148,885,000 in 2024 from $149,701,000 in 2023, reflecting a minor reduction[34] - Other noncurrent assets increased to $66,416,000 in 2024 from $51,377,000 in 2023, indicating a growth of approximately 29.3%[34] Future Outlook - Otter Tail Corporation updated its long-term earnings per share growth rate target to 6-8%, up from 5-7%[6] - The company anticipates 2025 diluted earnings per share to range between $5.68 and $6.08, reflecting a 7% expected growth in the Electric segment[25] - The Electric segment's return on equity was 19.3% for 2024, with a target of 13.8% to 14.6% for 2025[26] - The Electric segment's average rate base is expected to grow from $1.892 billion in 2024 to $2.909 billion by 2029, reflecting an annual growth rate of 9.0%[27] - The average rate base is anticipated to increase by 12% in 2025 compared to 2024, enhancing returns[28] - A planned maintenance outage at Coyote Station is scheduled for 2025, which may impact operational performance[28] - The company expects continued declines in product sales prices throughout 2025, following a retreat from 2022 highs[28] Segment Performance - Electric segment operating revenues for the three months ended December 2024 were $139,818, up 5.5% from $132,362 in 2023[36] - Manufacturing segment net income for the twelve months ended December 2024 was $13,681, down 36.6% from $21,454 in 2023[36] - Plastics segment operating revenues for the three months ended December 2024 were $96,661, an increase of 8.7% from $89,105 in 2023[36]