Otter Tail Corp. (OTTR, Financial) filed Quarterly Report for the period ended 2010-06-30.
Otter Tail Corp. has a market cap of $713.61 million; its shares were traded at around $19.86 with a P/E ratio of 28.78 and P/S ratio of 0.69. The dividend yield of Otter Tail Corp. stocks is 5.99%.OTTR is in the portfolios of Paul Tudor Jones of The Tudor Group, John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
The increase in retail sales revenues mainly is due to the following: (1) a $2.1 million increase in Fuel Clause Adjustment revenues related to a net increase in fuel and purchased power costs incurred to serve retail customers, (2) a $1.6 million increase in renewable resource recovery and transmission rider revenues, (3) a $0.6 million increase in revenues related to a general rate increase in South Dakota which began in May 2009, (4) a $0.5 million revenue refund accrual in the second quarter of 2009 related to North Dakota revenues collected under interim rates, and (5) a 0.4 million increase in Minnesota Conservation Investment Program (CIP) surcharge revenues.
Wholesale electric revenues from company-owned generation increased as a result of a 97.2% increase in wholesale kilowatt-hour (kwh) sales. Generating plant output was 32.4% higher in the second quarter of 2010 than in the second quarter of 2009 when Coyote Station was shut down for six weeks of scheduled maintenance. Net revenue from energy trading activity, including net mark-to-market gains on forward energy contracts, decreased mainly as a result of a decrease in net mark-to-market gains recognized on forward purchases and sales of electricity between the quarters. The decrease in other electric revenues reflects a $2.5 million decrease in revenues from contracted services, partially offset by a $0.6 million increase in transmission services revenue.
The increase in other operation and maintenance expenses includes an increase in labor costs of $1.7 million, mainly related to increased wage and benefit costs, offset by a $1.4 million decrease in costs incurred to provide contracted services to others.
Revenues from scanning and other related services decreased $3.8 million as a result of a 21.9% decrease in scans performed, partially offset by a 2.6% increase in revenue per scan. Revenues from equipment sales and servicing decreased $0.7 million. The decrease in costs of goods sold reflects a $2.0 million reduction in material, labor and other direct costs of sales and a reduction in equipment rental costs of $2.4 million directly related to efforts by the health services segment to right-size its fleet of imaging assets by exercising purchase options on productive imaging assets coming off lease in 2010 and not renewing leases on underutilized imaging assets coming off lease. Through this process, the imaging business has reduced the combined number of units of imaging equipment it leases and owns by 12.4% over the past twelve months. The decrease in operating expenses includes $0.4 million related to an increase in gains on sales of assets and a $0.3 million reduction in sales and marketing salaries and expenses. The increase in depreciation expense reflects an increase in owned equipment compared with the same quarter a year ago.
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Otter Tail Corp. has a market cap of $713.61 million; its shares were traded at around $19.86 with a P/E ratio of 28.78 and P/S ratio of 0.69. The dividend yield of Otter Tail Corp. stocks is 5.99%.OTTR is in the portfolios of Paul Tudor Jones of The Tudor Group, John Keeley of Keeley Fund Management, Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Consolidated operating revenues were $270.2 million for the three months ended June 30, 2010 compared with $246.9 million for the three months ended June 30, 2009. An operating loss of $13.1 million was recorded for the three months ended June 30, 2010 compared with operating income of $6.2 million for the three months ended June 30, 2009. The Company recorded diluted earnings per share of ($0.40) for the three months ended June 30, 2010 compared with $0.07 for the three months ended June 30, 2009.The increase in retail sales revenues mainly is due to the following: (1) a $2.1 million increase in Fuel Clause Adjustment revenues related to a net increase in fuel and purchased power costs incurred to serve retail customers, (2) a $1.6 million increase in renewable resource recovery and transmission rider revenues, (3) a $0.6 million increase in revenues related to a general rate increase in South Dakota which began in May 2009, (4) a $0.5 million revenue refund accrual in the second quarter of 2009 related to North Dakota revenues collected under interim rates, and (5) a 0.4 million increase in Minnesota Conservation Investment Program (CIP) surcharge revenues.
Wholesale electric revenues from company-owned generation increased as a result of a 97.2% increase in wholesale kilowatt-hour (kwh) sales. Generating plant output was 32.4% higher in the second quarter of 2010 than in the second quarter of 2009 when Coyote Station was shut down for six weeks of scheduled maintenance. Net revenue from energy trading activity, including net mark-to-market gains on forward energy contracts, decreased mainly as a result of a decrease in net mark-to-market gains recognized on forward purchases and sales of electricity between the quarters. The decrease in other electric revenues reflects a $2.5 million decrease in revenues from contracted services, partially offset by a $0.6 million increase in transmission services revenue.
The increase in other operation and maintenance expenses includes an increase in labor costs of $1.7 million, mainly related to increased wage and benefit costs, offset by a $1.4 million decrease in costs incurred to provide contracted services to others.
Revenues from scanning and other related services decreased $3.8 million as a result of a 21.9% decrease in scans performed, partially offset by a 2.6% increase in revenue per scan. Revenues from equipment sales and servicing decreased $0.7 million. The decrease in costs of goods sold reflects a $2.0 million reduction in material, labor and other direct costs of sales and a reduction in equipment rental costs of $2.4 million directly related to efforts by the health services segment to right-size its fleet of imaging assets by exercising purchase options on productive imaging assets coming off lease in 2010 and not renewing leases on underutilized imaging assets coming off lease. Through this process, the imaging business has reduced the combined number of units of imaging equipment it leases and owns by 12.4% over the past twelve months. The decrease in operating expenses includes $0.4 million related to an increase in gains on sales of assets and a $0.3 million reduction in sales and marketing salaries and expenses. The increase in depreciation expense reflects an increase in owned equipment compared with the same quarter a year ago.
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