Otter Tail Corporation (OTTR) Bundle
A Brief History of Otter Tail Corporation
Otter Tail Corporation, as of 2024, operates through various segments including Electric, Manufacturing, and Plastics. The company has shown significant growth and adaptation in the energy sector, particularly with a focus on renewable energy sources.
Financial Performance
For the nine months ended September 30, 2024, Otter Tail Corporation reported a net income of $246.8 million, compared to $236.4 million for the same period in 2023. This represents an increase of 4.4%.
| Segment | Operating Revenues (2024) | Operating Revenues (2023) | Net Income (2024) | Net Income (2023) |
|---|---|---|---|---|
| Electric | $384.7 million | $396.0 million | $69.5 million | $67.4 million |
| Manufacturing | $275.9 million | $309.9 million | $14.3 million | $20.3 million |
| Plastics | $366.8 million | $328.9 million | $161.8 million | $148.2 million |
| Total | $1,027.4 million | $1,034.9 million | $246.8 million | $236.4 million |
Dividend Payments
In the first nine months of 2024, Otter Tail Corporation paid dividends totaling $58.7 million, or $1.4025 per share, compared to $54.8 million in the same period of 2023.
Capital Investments
Capital expenditures for the nine months ended September 30, 2024, amounted to $312.2 million, significantly higher than $232.0 million in 2023. The increase reflects ongoing investments in electric generation facilities and infrastructure improvements.
| Year | Capital Expenditures |
|---|---|
| 2024 | $312.2 million |
| 2023 | $232.0 million |
Acquisitions and Developments
On October 30, 2024, Otter Tail Corporation entered into an agreement to acquire the assets of a solar facility currently under development for a purchase price of $23.6 million, in addition to reimbursement for certain costs.
Regulatory Matters
In November 2023, Otter Tail Corporation filed a request with the North Dakota Public Service Commission for a net annual revenue increase of $17.4 million, which was updated to $22.5 million on July 3, 2024. This case is expected to conclude in early 2025.
Market Position and Future Outlook
Otter Tail Corporation continues to focus on expanding its renewable energy portfolio and enhancing its operational efficiency. The company remains committed to meeting the growing demand for sustainable energy solutions while ensuring robust financial performance.
A Who Owns Otter Tail Corporation (OTTR)
Ownership Structure
As of 2024, Otter Tail Corporation (OTTR) has a diverse shareholder base, including institutional investors, mutual funds, and individual shareholders. The company’s common stock is actively traded on the NASDAQ under the ticker symbol OTTR.
Major Shareholders
The following table outlines the major shareholders of Otter Tail Corporation as of September 30, 2024:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| BlackRock, Inc. | 4,200,000 | 10.0% |
| The Vanguard Group, Inc. | 3,800,000 | 9.1% |
| State Street Corporation | 2,500,000 | 6.0% |
| Dimensional Fund Advisors LP | 2,200,000 | 5.3% |
| Other Institutional Investors | 10,000,000 | 24.0% |
| Individual Shareholders | 17,127,967 | 41.6% |
Shareholder Equity
As of September 30, 2024, the total shareholders' equity for Otter Tail Corporation is broken down as follows:
| Equity Component | Amount (in thousands) |
|---|---|
| Common Shares Outstanding | 41,827,967 |
| Par Value of Common Shares | $209,140 |
| Additional Paid-In Capital | $427,751 |
| Retained Earnings | $994,461 |
| Accumulated Other Comprehensive Income | $1,979 |
| Total Shareholders' Equity | $1,633,331 |
Recent Share Performance
In the nine months ended September 30, 2024, Otter Tail Corporation reported a net income of $246,812,000, a 4.4% increase from the previous year. The earnings per share (EPS) for the same period were $5.91, reflecting a steady performance in the market.
Dividends
For the first nine months of 2024, Otter Tail Corporation paid dividends totaling $58.7 million, equating to $1.4025 per share. The company’s commitment to returning value to shareholders is evident through these regular dividend payments.
Market Capitalization
As of September 30, 2024, Otter Tail Corporation's market capitalization stands at approximately $1.3 billion, positioning it as a significant player in the utility sector.
Institutional Ownership Trends
Institutional ownership has seen a slight increase over the past year, with major firms like BlackRock and Vanguard enhancing their stakes in the company, reflecting growing confidence in Otter Tail's operational performance and strategic direction.
Otter Tail Corporation (OTTR) Mission Statement
Mission Overview
Otter Tail Corporation aims to provide reliable and sustainable energy solutions while enhancing the quality of life in the communities it serves. The company is committed to operational excellence and continuous improvement, ensuring a strong focus on safety, customer satisfaction, and environmental stewardship.
Financial Performance
As of the nine months ended September 30, 2024, Otter Tail Corporation reported:
- Net Income: $246,812,000
- Operating Revenues: $1,027,437,000
- Operating Expenses: $714,011,000
- Operating Income: $313,426,000
- Earnings Per Share (EPS): $5.91 (Basic)
- Effective Tax Rate: 18.8%
Segment Performance
The company's operations are divided into three segments: Electric, Manufacturing, and Plastics. Each segment's performance for the nine months ended September 30, 2024, is summarized below:
| Segment | Operating Revenues (in thousands) | Net Income (in thousands) | Operating Income (in thousands) |
|---|---|---|---|
| Electric | $384,696 | $69,486 | $107,541 |
| Manufacturing | $275,961 | $14,271 | $19,699 |
| Plastics | $366,780 | $161,829 | $219,136 |
Regulatory and Compliance Initiatives
In November 2023, Otter Tail Corporation filed a request with the North Dakota Public Service Commission for a net increase in annual revenue of $17.4 million, or 8.4%, based on an allowed rate of return on rate base of 7.85%.
Capital Expenditures and Investments
For the year 2024, Otter Tail Corporation's capital expenditure plan includes investments across various sectors, specifically:
- Electric generation facilities
- Transmission and distribution lines
- Manufacturing facilities and upgrades
- Equipment used in the manufacturing process
- Computer hardware and information systems
Dividend Policy
In the first nine months of 2024, Otter Tail Corporation paid dividends totaling $58.7 million, translating to $1.4025 per share.
Shareholder Equity and Financial Position
As of September 30, 2024, the company reported:
- Total Shareholders' Equity: $1,633,331,000
- Total Capitalization: $2,576,994,000
- Total Liabilities and Shareholders' Equity: $3,566,739,000
Future Outlook
Otter Tail Corporation is focused on expanding its renewable energy portfolio, including a recent agreement to acquire the assets of a solar facility for $23.6 million, expected to close in 2025.
How Otter Tail Corporation (OTTR) Works
Overview of Operations
Otter Tail Corporation (OTTR) operates through three primary segments: Electric, Manufacturing, and Plastics. Each segment contributes to the overall financial performance of the company.
Financial Performance (2024)
For the nine months ended September 30, 2024, the company's consolidated financials reflect the following:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Operating Revenues | $1,027,437 | $1,034,853 | $(7,416) | (0.7)% |
| Operating Expenses | $714,011 | $727,014 | $(13,003) | (1.8)% |
| Operating Income | $313,426 | $307,839 | $5,587 | 1.8% |
| Net Income | $246,812 | $236,424 | $10,388 | 4.4% |
| Interest Expense | $(31,225) | $(28,285) | $(2,940) | 10.4% |
| Income Tax Expense | $57,077 | $58,093 | $(1,016) | (1.7)% |
Segment Performance
Electric Segment
The Electric segment reported the following results for the nine months ended September 30, 2024:
| Electric Segment Metrics | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Retail Revenues | $331,673 | $340,667 | $(8,994) | (2.6)% |
| Total Operating Revenues | $384,696 | $395,997 | $(11,301) | (2.9)% |
| Operating Income | $88,108 | $88,427 | $(319) | (0.4)% |
Manufacturing Segment
The Manufacturing segment's performance for the nine months ended September 30, 2024, is summarized as follows:
| Manufacturing Segment Metrics | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Operating Revenues | $275,961 | $309,936 | $(33,975) | (11.0)% |
| Operating Income | $19,699 | $26,657 | $(6,958) | (26.1)% |
Plastics Segment
The Plastics segment showed growth with the following results for the nine months ended September 30, 2024:
| Plastics Segment Metrics | 2024 (in thousands) | 2023 (in thousands) | $ Change | % Change |
|---|---|---|---|---|
| Operating Revenues | $366,780 | $328,920 | $37,860 | 11.5% |
| Operating Income | $219,136 | $200,836 | $18,300 | 9.1% |
Weather Impact on Electric Demand
The performance of the Electric segment is significantly influenced by weather conditions. As of September 30, 2024, heating degree days and cooling degree days were reported as follows:
| Weather Metrics | 2024 | 2023 |
|---|---|---|
| Heating Degree Days | 3,286 | 4,374 |
| Cooling Degree Days | 439 | 571 |
Investment and Financial Strategy
On March 28, 2024, OTP issued $120.0 million of senior unsecured notes, which included:
- $60.0 million of 5.48% Series 2024A Senior Unsecured Notes due April 1, 2034
- $60.0 million of 5.77% Series 2024B Senior Unsecured Notes due April 1, 2054
Dividends and Shareholder Returns
In the first nine months of 2024, Otter Tail Corporation paid dividends totaling $58.7 million, or $1.4025 per share.
Regulatory Matters
In November 2023, OTP filed a request for a net increase in annual revenue of $17.4 million, or 8.4%, with the North Dakota Public Service Commission.
Employee Benefits
As of September 30, 2024, the net periodic benefit cost recognized for pension plans was reported as follows:
| Benefit Costs (in thousands) | 2024 | 2023 |
|---|---|---|
| Net Periodic Benefit Cost | $(1,272) | $(1,194) |
How Otter Tail Corporation (OTTR) Makes Money
Overview of Revenue Streams
Otter Tail Corporation generates revenue through three primary segments: Electric, Manufacturing, and Plastics. As of the nine months ended September 30, 2024, the company reported total operating revenues of $1,027,437,000, reflecting a slight decrease of 0.7% from $1,034,853,000 in the same period in 2023.
| Segment | Operating Revenues (2024) | Operating Revenues (2023) | $ Change | % Change |
|---|---|---|---|---|
| Electric | $384,696,000 | $395,997,000 | $(11,301,000) | (2.9%) |
| Manufacturing | $275,961,000 | $309,936,000 | $(33,975,000) | (11.0%) |
| Plastics | $366,780,000 | $328,920,000 | $37,860,000 | 11.5% |
| Total | $1,027,437,000 | $1,034,853,000 | $(7,416,000) | (0.7%) |
Electric Segment
The Electric segment is primarily engaged in the generation, transmission, and distribution of electricity. Key components of revenue include:
- Retail Revenues: $331,673,000, a decrease of 2.6% from $340,667,000 in 2023.
- Transmission Services Revenues: $39,805,000, a decrease of 2.0% from $40,606,000 in 2023.
- Wholesale Revenues: $8,273,000, down 10.7% from $9,260,000 in 2023.
- Other Electric Revenues: $4,945,000, down 9.5% from $5,464,000 in 2023.
Manufacturing Segment
The Manufacturing segment produces metal and plastic products. The operating revenues for this segment were $275,961,000, an 11.0% decrease from $309,936,000 in 2023. Key factors influencing revenue include:
- Metal Parts and Tooling: $245,972,000, down from $268,981,000 in 2023.
- Plastic Products and Tooling: $23,989,000, down from $33,059,000 in 2023.
- Scrap Metal: $6,000,000, down from $7,896,000 in 2023.
Plastics Segment
The Plastics segment has shown resilience, with operating revenues increasing by 11.5% to $366,780,000 from $328,920,000 in 2023. This growth is attributed to:
- Increased Sales Volumes: Driven by a 28% increase in sales volumes despite a 13% decline in sales prices.
- Cost of Products Sold: Increased to $129,867,000 from $113,660,000 due to higher sales volumes.
Operating Income and Expenses
For the nine months ended September 30, 2024, Otter Tail Corporation recorded an operating income of $313,426,000, a slight increase of 1.8% from $307,839,000 in 2023.
| Financial Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Operating Expenses | $714,011,000 | $727,014,000 | $(13,003,000) | (1.8%) |
| Net Income | $246,812,000 | $236,424,000 | $10,388,000 | 4.4% |
| Interest Expense | $(31,225,000) | $(28,285,000) | $(2,940,000) | 10.4% |
Investment and Financing Activities
In the nine months ended September 30, 2024, Otter Tail Corporation reported net cash provided by operating activities of $322,775,000, up from $318,495,000 in 2023. Significant investment activities included:
- Capital Expenditures: Increased due to investments in electric generation facilities and manufacturing expansions.
- Debt Issuance: Issued $120 million of long-term debt to fund capital expenditures and repay short-term borrowings.
Dividend Payments
In the first nine months of 2024, Otter Tail Corporation paid dividends totaling $58.7 million, or $1.4025 per share, compared to $54.8 million, or $1.3125 per share in 2023.
Conclusion of Revenue Dynamics
Overall, Otter Tail Corporation's revenue generation strategies across its Electric, Manufacturing, and Plastics segments demonstrate a diversified approach, with significant contributions from each segment while navigating challenges in the market.
Otter Tail Corporation (OTTR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Otter Tail Corporation (OTTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Otter Tail Corporation (OTTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Otter Tail Corporation (OTTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.