Nickelodeon Hotels & Resorts Riviera Maya Now Open for the Ultimate Family Vacation

PR Newswire

Join SpongeBob SquarePants and Friends at First All Oceanfront Swim-Up Suite Resort Featuring Six-Acre Aqua Nick® Water Park, World-Class Gourmet® Inclusive Dining, Slimings and Character Experiences Galore

MIAMI, Aug. 2, 2021 /PRNewswire/ — As SpongeBob SquarePants says, “I’m Ready!” The highly anticipated five-star, all-inclusive Nickelodeon Hotels & Resorts Riviera Maya rolls out the Orange Carpet today as the ultimate family-friendly destination opens its doors. Here, Nickelodeon’s renowned Slimings and Character Experiences are combined with Karisma Hotels & Resorts‘ and Grupo Lomas’ unmatched hospitality, with the brand’s first all Oceanfront Swim-Up Suite resort featuring an enormous six-acre Aqua Nick® water park, new Teenage Mutant Ninja Turtles themed penthouse suites, World-Class Gourmet Inclusive® dining with fan faves Good Burger and Piazza and endless play-all-day entertainment. During this exclusive opening period in the fall, rates start at $259 per person, per night and can be booked now through Aug. 31, 2021 for travel now through Jan. 4, 2022.

“As Mexico’s first and only Nickelodeon resort, Nickelodeon Hotels & Resorts Riviera Maya transports kids and adults alike into the imagination-expanding worlds of the entertainment brand’s beloved shows,” said Mario Mathieu Senior Vice President of Business Development, Design and Construction at Karisma Hotels & Resorts. “From surprise and delight interactions with an expanded cast of 20 characters and one of the country’s largest water attractions, to signature themed accommodations, such as the first-ever Lair Suite and more, there is a one-of-a-kind experience waiting to ignite the spark of play for all guests.”

“In the midst of a challenging year, we are delighted to open the doors of the new Nickelodeon Hotels & Resorts Riviera Maya. Nickelodeon fans of all ages can now enjoy the ultimate family escape at Mexico’s first Nickelodeon Resort, which features the world’s largest Nickelodeon water park, endless entertainment options and all ocean-front swim-up suites,” said Kevin Suh, President of Themed Entertainment at ViacomCBS.

Every Room is an Oceanfront Swim-Up Suite That Holds a Family of Five
Featuring 280 whimsically designed Oceanfront Swim-Up Suites, every 581-square-foot room comfortably accommodates families of five, complete with two full bathrooms and a spectacular view of the Caribbean Sea from the oversized balcony, which boasts access to an infinity plunge pool. In addition to plenty of space for families to spread out, suites feature playful design elements including art pieces pulled from beloved show archives and furnishings inspired by Nickelodeon’s iconic colors and characters, from beloved shows including Teenage Mutant Ninja Turtles, SpongeBob SquarePants and Dora the Explorer.

For the ultimate Nickelodeon experience, guests can also choose from three specialty suites, including:

An Ode to Nickelodeon at The Big Kahuna Suite
Lovingly curated with 90s elements, the 3,000-square-feet, two bedroom Big KahunaSuite features one-of-a-kind design elements that evoke Nickelodeon nostalgia. Custom pieces include a sideboard inspired by the signature purple glasses of Chuckie from Rugrats and neon artwork of the phrase “Happy Happy Joy Joy,” the hit song from The Ren & Stimpy Show. Kids can enjoy a fully immersive Loud House-themed bedroom, all complemented by an ensuite bathroom featuring a free-standing tub and rain shower. There’s even a 710-square-feet Ocean-Front Terrace for the ultimate private outdoor space with lounge furniture and an Infinity Plunge Pool that flows across the length of the Suite.

The All-New Lair Suite Takes Guests on a Subterranean Adventure with Teenage Mutant Ninja Turtle Themed Accommodations
For Nickelodeon fans who want ultimate bragging rights, there is the brand-new Lair Suite, a rooftop penthouse paying homage to the Teenage Mutant Ninja Turtles that can accommodate up to seven guests. This new luxurious accommodation unique to the resort never felt cooler, where every iteration of the Turtles throughout the years is featured in the decor. Spanning 3,000-square-feet, the suite encompasses both indoor and outdoor living and dining areas, a Master Suite with a spa-inspired bathroom and two additional bedrooms. Guests will enjoy the 710-square-foot oceanfront terrace overlooking the turquoise water, complete with an infinity plunge pool and lounge space. Plus, in-suite butlers can arrange a variety of private experiences, such as an in-suite or moonlight beach dinner, daily afternoon tea, private wine tasting, aromatherapy menu selections, pillow menu selections, aroma baths, and more.

Fan-Favorite Pineapple Suite Brings Travelers to Bikini Bottom
Back by popular demand, the Pineapple Suite, which is also featured at the inaugural Nickelodeon Hotels & Resorts property in Punta Cana, is the resort’s signature dwelling. Inspired by SpongeBob’s underwater home, the penthouse combines luxurious accommodations and modern amenities, with all of the fanciful trappings of Bikini Bottom, so guests can truly experience living in a pineapple under the sea. Pineapple Suite guests, like Lair guests, will additionally enjoy the decadent vacation offerings that are exclusive to signature penthouse suites, including 3,000-square-feet of indoor and outdoor living areas, an oceanfront terrace sporting stunning views, and private butlers to keep families pampered throughout their stay.

World-Class Gourmet Dining Experiences Transport Guests Back to the 90s and Under the Sea
At Nickelodeon Hotels & Resorts, children and adults alike can indulge in 24-hour in-room dining, as well as world-class food and beverage served at six distinct restaurants. Families can dine at Nick Bistro, indulge in the Teenage Mutant Ninja Turtles’ favorite food with authentic pizzas at Piazza, grab a tasty bite at the retro-inspired Good Burger diner where nostalgia rules, or dine market style at Le Spatula, where walls are adorned with themed show art and cuisine comes straight out of Bikini Bottom. Parents can enjoy some adult beverages at the resort’s three bars, including The Bikini Bottom Bar and Gourmet Corner, which features healthy bites and signature drinks under the colorful glow of jellyfish lamps, in addition to two swim-up bars, Cosmo & Wanda, which serve a wide selection of fresh juice-infused beverages, alcoholic and non-alcoholic premium cocktails, and more.

Experience One of Mexico’s Largest Water Parks, Aqua Nick®
At the heart of the resort is nonstop wet and wild fun at the entertainment epicenter, the six-acre Aqua Nick®, one of Mexico’s largest themed water parks. Encompassing 2,000-square-feet of slides, 1,820-square-feet of river rides and more, families will be delighted as they explore the surprises,  and Slimings, that await them. Features include:

  • Activity Pool: A massive pool suited for adventurous water play featuring a full schedule of entertainment and activities.
  • Soak Summit Main Tower: A 59-foot-high tower, Soak Summit encompasses exhilarating slides and extensive views. Choose from the horizontal looping “The Big Plunge,” the enclosed entrances of “Riptide Rush,” or one of the faster rides, “Tubular Twist.”
  • Paw Patrol Adventure Bay: Features smaller, fun-size slides for younger children to enjoy, including the “Hero Half Pipe,” “Rescue Racers,” and the mammoth tipping bucket to cool off with 16 gallons of water!
  • Bikini Bottom Beach: This multi-level water playground is equipped with numerous slides, water guns and jets, tipping buckets and much more – families may even catch a glimpse of SpongeBob and friends here!
  • Daily Super Slimings: No day at Aqua Nick would be complete without a Super Sliming, the ultimate Nickelodeon honor.

The First Round of Fun-Fueled Signature Experiences For the Whole Family
Beyond the expansive offerings at Aqua Nick®, there is also Nickelodeon Place™, the hub of many of the resort’s entertainment features, which provides additional fun-filled activities for all ages. Kids will be delighted as they explore the resort with surprise character meet and greets, character dinners, Splash Mob dance parties and scavenger hunts to find iconic Nickelodeon characters. Plus, daily activities will include beachside yoga, cooking lessons at Bikini Bottom, beach volleyball competitions and nightly live entertainment.

“Following the great success of the Punta Cana resort, we wanted to bring the Nickelodeon experience to Mexico, building one of the most anticipated hotels in Riviera Maya for families,” said Dolores López Lira, President and Founder of Grupo Lomas. “With industry-setting standards like rooms built for families of five, coupled with the unparalleled character immersions created here, all underscored by Karisma Hotels & Resorts’ five-star hospitality, this fan-favorite destination truly raises the bar. It is incredible to see the smiles on kids’ faces from the moment they walk in the lobby and are transported into the captivating world of Nickelodeon.”

Even More Excitement to Come
Beyond today’s opening, we are finalizing additional amenities to ensure you have the Slime of your life such as Náay Spa, the seafront fitness center, and daily activities and entertainment offerings, debuting October 2021. Guests can also look forward to the addition of Club Nick, the ultimate free play zone complete with themed days, a craft laboratory, surprise visits by fan-favorite characters and more. They will even get the chance to chill on the iconic Big Orange Couch in the SNICK Lounge, a hangout area geared towards older kids. Nickelodeon’s famed Orange Carpet will be rolled out soon as well so guests can feel like a star as they strut alongside their favorite characters. As an added bonus, they will be able to rub elbows with Dora the Explorer, SpongeBob SquarePants and Patrick, The Fairly Oddparents, and Paw Patrol at the upcoming Pajama Jam! Character Breakfasts. Finally, coming soon to  Aqua Nick® will be the addition of Personal Slimings and Nick Live! Poolside, which will feature live character performances where fans are pulled straight from the water to compete in wacky, thrilling Nickelodeon games – winners even get doused in Nickelodeon Slime!

To ensure a holistic approach to guest safety and wellness, Karisma Hotels & Resorts created a comprehensive well-being program called Karisma Peace of Mind, which includes a free, on-site antigen test for guests traveling to the U.S. per CDC requirements.

For more information and to make a reservation, call your travel advisor or visit: http://nickresortrivieramaya.com/

High-res images are available here


About Grupo Lomas


Grupo Lomas is a leading Mexican tourism company founded 40 years ago by Dolores López Lira and her husband José Luis Martínez Alday, with the objective of creating unforgettable experiences for visitors from around the globe. The tourism brand currently employs more than 3,000 staff across a range of business units, including a select collection of hotels with an average of 2,000 suites in the Mexican Caribbean and Baja California Norte regions, as well as a travel agency, transportation company, adventure center and beach club. Grupo Lomas has earned recognition as one of the best Mexican companies to work for and was recently included in the Super Company for Women 2021 ranking by the Mexican magazine Expansión and Top Companies Consulting.


About Karisma Hotels & Resorts

Karisma Hotels & Resorts is an award-winning luxury hotel collection that owns and manages an impressive portfolio of properties in Latin America, the Caribbean and Europe. Property brands include Margaritaville Island Reserve by Karisma; El Dorado Spa Resorts by Karisma; Azul Beach Resorts by Karisma; Generations Resorts by Karisma; Karisma Villas; Allure Hotels by Karisma; Hidden Beach Resort by Karisma; Nickelodeon Hotels & Resorts; Sensatori Resorts; Sensimar Resorts; and Karisma Hotels Adriatic. Properties have been honored with the industry’s top accolades including Conde Nast Traveler’s “Top 100 Hotels in the World,” Conde Nast Traveler’s “Top 30 Hotels in Cancun,” TripAdvisor® Traveler’s Choice “Best Hotels for Romance,” and AAA’s “Five Diamond Award” and “Four Diamond Award.” Karisma Hotels & Resorts is committed to employee and community support while delivering authentic experiences to guests, receiving worldwide recognition for its compassionate and creative approach to hospitality management and product innovations. 


About Nickelodeon International

Nickelodeon, now in its 41st year, is the number-one entertainment brand for kids. It has built a diverse, global business by putting kids first in everything it does. The brand includes television programming and production in the United States and around the world, plus consumer products, digital, location-based experiences, publishing and feature films. Nickelodeon is one of the most globally recognized and widely distributed multimedia entertainment brands for kids and family, available in more than 400 million households across 170+ countries and territories, via more than 100+ locally programmed channels and branded blocks. Outside of the United States, Nickelodeon is part of ViacomCBS Networks International, a division of ViacomCBS Inc. (Nasdaq: VIACA, VIAC).  For more information or artwork, visit http://www.nickpress.com. Nickelodeon and all related titles, characters and logos are trademarks of ViacomCBS Inc.

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SOURCE Karisma Hotels & Resorts

ViacomCBS Declares Quarterly Cash Dividends

ViacomCBS Declares Quarterly Cash Dividends

NEW YORK–(BUSINESS WIRE)–
ViacomCBS Inc. (NASDAQ: VIAC; VIACA) today announced that its Board of Directors has declared a quarterly cash dividend of $0.24 per share on both its Class A and Class B Common Stock. The dividend will be payable on October 1, 2021 to stockholders of record at the close of business on September 15, 2021.

At the same time, the Board of Directors also declared a quarterly cash dividend of $1.4375 per share on its 5.75% Series A Mandatory Convertible Preferred Stock. The dividend will be payable on October 1, 2021 to stockholders of record at the close of business on September 15, 2021.

About ViacomCBS

ViacomCBS (NASDAQ: VIAC; VIACA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic consumer brands, its portfolio includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. The company delivers the largest share of the U.S. television audience and boasts one of the industry’s most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, ViacomCBS provides powerful capabilities in production, distribution and advertising solutions.

For more information about ViacomCBS, please visit www.viacomcbs.com and follow @ViacomCBS on social platforms.

VIAC-IR

Press:
Justin Dini

Executive Vice President, Corporate Communications

(212) 846-2724

[email protected]

Peter Collins

Vice President, Corporate Communications

(917) 826-4182

[email protected]

Justin Blaber

Senior Director, Corporate Communications

(646) 823-6616

[email protected]

Pranita Sookai

Director, Corporate Communications

(718) 316-2182

[email protected]

Investors:
Anthony DiClemente

Executive Vice President, Investor Relations

(917) 796-4647

[email protected]

Jaime Morris

Vice President, Investor Relations

(646) 824-5450

[email protected]

Robert Amparo

Manager, Investor Relations

(347) 223-1682

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: TV and Radio General Entertainment Entertainment Film & Motion Pictures

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Hess Midstream Operations LP Announces Pricing of Private Offering of Senior Notes Due 2030

Hess Midstream Operations LP Announces Pricing of Private Offering of Senior Notes Due 2030

HOUSTON–(BUSINESS WIRE)–
Hess Midstream Operations LP (the “Issuer”), a consolidated subsidiary of Hess Midstream LP (NYSE: HESM) (“HESM” and, together with the Issuer, “Hess Midstream”), today announced that it has priced $750 million in aggregate principal amount of 4.250% senior unsecured notes due 2030 (the “Notes”) at par in a private offering. Hess Midstream intends to use the net proceeds from the offering to finance the previously announced repurchase by the Issuer of approximately 31 million Class B units from affiliates of Hess Corporation and Global Infrastructure Partners. The private offering of the Notes is expected to close on August 5, 2021, subject to the satisfaction of customary closing conditions.

The Notes are being sold only to “qualified institutional buyers” in the United States pursuant to Rule 144A and outside the United States to non-U.S. Persons in compliance with Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). The Notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Hess Midstream

Hess Midstream is a fee-based, growth-oriented, midstream company that owns, operates, develops and acquires a diverse set of midstream assets to provide services to Hess Corporation and third-party customers. Hess Midstream owns oil, gas and produced water handling assets that are primarily located in the Bakken and Three Forks Shale plays in the Williston Basin area of North Dakota. More information is available at www.hessmidstream.com.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of U.S. securities laws. Words such as “anticipate,” “estimate,” “expect,” “forecast,” “guidance,” “could,” “may,” “should,” “would,” “believe,” “intend,” “project,” “plan,” “predict,” “will,” “target” and similar expressions identify forward-looking statements, which are not historical in nature. Forward-looking statements are subject to certain known and unknown risks and uncertainties that could cause actual results to differ materially from our historical experience and our current projections or expectations of future results expressed or implied by these forward-looking statements. You should keep in mind the risk factors and other cautionary statements in the filings made by HESM with the U.S. Securities and Exchange Commission, which are available to the public. HESM undertakes no obligation to, and does not intend to, update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Investor Contact:

Jennifer Gordon

(212) 536-8244

Media Contact:

Robert Young

(713) 496-6076

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Energy Other Energy Oil/Gas

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PureCycle Technologies to Participate in Jefferies Industrials Conference

PR Newswire

ORLANDO, Fla., Aug. 2, 2021 /PRNewswire/ — PureCycle Technologies, Inc. (“PureCycle” or “the Company”) (NASDAQ: PCT), a company focused on polypropylene recycling, announced today that Michael Dee, Chief Financial Officer, will participate in the Jefferies Industrials Conference, which will be held virtually on August 3-4, 2021.    

The Company is scheduled to present on Tuesday, August 3, 2021 at 1:30 p.m. Eastern time.  The live webcast of the presentation can be accessed here.  Management is also scheduled to host one-on-one meetings to be held throughout the day. 

About PureCycle Technologies

PureCycle Technologies LLC, a subsidiary of PureCycle Technologies, Inc., holds a global license to commercialize the only patented solvent-based purification recycling technology, developed by The Procter & Gamble Company for restoring waste polypropylene (PP) into virgin-like resin. The proprietary process removes color, odor and other contaminants from recycled feedstock resulting in virgin-like polypropylene suitable for any PP market. To learn more, visit purecycle.com

Company Contact:

Anna Alexopoulous Farrar
Global Communications Manager
[email protected] 
(954) 647-7059

Investor Relations Contact:

Georg Venturatos

Gateway Investor Relations
[email protected]  
(949) 574-3860

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SOURCE PureCycle Technologies

Freeport-McMoRan Announces Appointment of Two Independent Members to its Board of Directors

Freeport-McMoRan Announces Appointment of Two Independent Members to its Board of Directors

Marcela E. Donadio

Sara Grootwassink Lewis

PHOENIX–(BUSINESS WIRE)–
Freeport-McMoRan Inc. (NYSE: FCX) announced today the appointment of Marcela E. Donadio and Sara Grootwassink Lewis to its Board of Directors.

Ms. Donadio retired as a partner of Ernst & Young LLP, a multinational professional services firm, in 2014. From 2007 until her retirement in 2014, she served as Americas Oil & Gas Sector Leader for Ernst & Young, with responsibility for one of the firm’s significant industry groups. She advised the firm’s oil and gas industry clients in the United States and throughout the Americas on business strategies and financial matters. Ms. Donadio served as audit partner for multiple companies with domestic and international operations in the natural resources sector and held various energy industry leadership positions during her career. She serves as Lead Independent Director of Marathon Oil Corporation and as a director of NOV, Inc. and Norfolk Southern Corporation. Ms. Donadio has dual United States and Panamanian citizenship, holds a B.S. in Accounting from Louisiana State University and is a Certified Public Accountant.

Ms. Lewis founded Lewis Corporate Advisors, a capital markets and board advisory firm, in 2009, where she served as chief executive officer until 2018. Ms. Lewis has significant executive, corporate finance and capital markets experience, and served as executive vice president and chief financial officer of Washington Real Estate Investment Trust. She has served on several public company boards, including Sun Life Financial, a global insurance and asset management firm, where she Chaired its Audit Committee. She currently serves as a director and Chair of the Audit Committee of The Weyerhaeuser Company, director and Chair of the Compensation and Human Capital Committee of Healthpeak Properties, Inc., and as director and Chair of the Audit Committee of Everside Health Group, Inc. Ms. Lewis serves on the Executive Committee and Board of Trustees of the Brookings Institution, the Leadership Board for the U.S. Chamber of Commerce Center for Capital Markets Competitiveness, and the Center for Audit Quality’s Audit Committee Council. She is a member of the Institute of Corporate Directors. Ms. Lewis is a Certified Public Accountant and a Chartered Financial Analyst. She holds a B.S. in Finance from the University of Illinois at Urbana-Champaign.

“We are delighted to welcome these highly qualified and knowledgeable executives to our Board,” said Richard C. Adkerson, Chairman and Chief Executive Officer. “Marcela and Sara each have proven track records in business, finance, financial accounting and controls, and corporate governance. Their skills and experiences will strengthen our Board in fulfilling its responsibilities to our stakeholders and in supporting our management team, as we relentlessly pursue the extraordinary opportunities ahead to build value responsibly in our global business. We look forward to their counsel and contributions.”

FCX’s Board of Directors is now comprised of nine members, including eight independent directors. With these additions to the Board, average director tenure is approximately five years.

FREEPORT: Foremost in Copper

FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the world’s largest publicly traded copper producers.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries. Additional information about FCX is available on FCX’s website at fcx.com.

Cautionary Statement Regarding Forward-Looking Statements: This press release contains forward-looking statements, which are all statements other than statements of historical facts. FCX cautions readers that forward-looking statements are not guarantees of future performance and actual results may differ materially from those anticipated, expected, projected or assumed in the forward-looking statements. Important factors that can cause FCX’s actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, the factors described in more detail under the heading “Risk Factors” in FCX’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the U.S. Securities and Exchange Commission (SEC).

Investors are cautioned that many of the assumptions on which FCX’s forward-looking statements are based are likely to change after the date the forward-looking statements are made, including for example commodity prices, which FCX cannot control, and production volumes and costs, some aspects of which FCX may not be able to control. Further, FCX may make changes to its business plans that could affect its results. FCX cautions investors that it undertakes no obligation to update forward-looking statements, which speak only as of the date made, notwithstanding any changes in its assumptions, changes in business plans, actual experience or other changes.

Financial Contacts:

Kathleen L. Quirk

(602) 366-8016

David P. Joint

(504) 582-4203

Media Contact:

Linda S. Hayes

(602) 366-7824

KEYWORDS: United States North America Arizona

INDUSTRY KEYWORDS: Mining/Minerals Natural Resources

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AHCO ALERT: Investors with Substantial Losses Have Opportunity to Lead the AdaptHealth Corp. Class Action Lawsuit – AHCO; AHCOW

AHCO ALERT: Investors with Substantial Losses Have Opportunity to Lead the AdaptHealth Corp. Class Action Lawsuit – AHCO; AHCOW

SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that the AdaptHealth class action lawsuit charges AdaptHealth Corp. f/k/a DFB Healthcare Acquisitions Corp. (NASDAQ: AHCO; AHCOW) and certain of its top executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of AdaptHealth securities between November 11, 2019 and July 16, 2021, inclusive (“Class Period”). The AdaptHealth class action lawsuit was commenced on July 29, 2021 in the Eastern District of Pennsylvania and is captioned Faille v. AdaptHealth Corp. f/k/a DFB Healthcare Acquisitions Corp.,No. 21-cv-03382.

If you wish to serve as lead plaintiff of the AdaptHealth class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected].

CASE ALLEGATIONS: Prior to its business combination with AdaptHealth, as described below, DFB was a special purpose acquisition company (or “SPAC”), also known as a blank check company. On July 8, 2019, DFB announced that it had entered into a definitive agreement for a business combination with AdaptHealth, the third largest distributor of home medical equipment in the U.S. Upon the closing of the merger, DFB renamed itself “AdaptHealth Corp.”

The AdaptHealth class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) AdaptHealth had misrepresented its organic growth trajectory by retroactively inflating past organic growth numbers without disclosing the changes, in violation of U.S. Securities and Exchange Commission (“SEC”) regulations; (ii) accordingly, AdaptHealth had materially overstated its financial prospects; and (iii) as a result, AdaptHealth’s public statements were materially false and misleading at all relevant times.

On July 19, 2021, Jehoshaphat Research published a report alleging that AdaptHealth is a “roll-up” company, or a company that is built primarily through the acquisition of smaller companies with common services or products, that obscures its organic growth by “[r]etroactively changing past organic growth numbers to be higher, with no disclosure about the change.” Specifically, the report stated that “[w]hile management claims (and consensus estimates reflect) an organic growth trajectory of 8-10%, AHCO is in fact experiencing double-digit organic decline. It is also, in our opinion, taking steps to obscure that decline which are expressly forbidden by the SEC.” The report suggested that AdaptHealth’s manipulation of its organic growth trajectory was “a blatant violation of non-GAAP disclosure rules, for which companies get into huge trouble.” On this news, AdaptHealth’s stock price fell nearly 6%, damaging investors.

Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased AdaptHealth securities during the Class Period to seek appointment as lead plaintiff in the AdaptHealth class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the AdaptHealth class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the AdaptHealth class action lawsuit. An investor’s ability to share in any potential future recovery of the AdaptHealth class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit https://www.rgrdlaw.com/firm.html for more information.

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Robbins Geller Rudman & Dowd LLP

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J.C. Sanchez, 800-449-4900

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PVH Corp. Completes Sale of Heritage Brands to Authentic Brands Group

PVH Corp. Completes Sale of Heritage Brands to Authentic Brands Group

Transaction includes IZOD, VAN HEUSEN, ARROW and Geoffrey Beene

NEW YORK–(BUSINESS WIRE)–
PVH Corp. [NYSE: PVH] , parent company of Calvin Klein and TOMMY HILFIGER, announced today it has completed its previously announced sale of certain intellectual property and other assets of its Heritage Brands business to Authentic Brands Group (ABG). The cash purchase price for the transaction, which includes the IZOD, Van Heusen, ARROW and Geoffrey Beene trademarks and certain related inventories and other assets, was $223 million, subject to adjustment.

Stefan Larsson, Chief Executive Officer, PVH Corp., commented, “PVH is entering a new growth chapter, executing against our accelerated recovery priorities and with clear focus on unlocking the full potential of our iconic, global growth brands, Calvin Klein and TOMMY HILFIGER. We also believe that ABG is well positioned to further develop and support our former Heritage Brands for future success.”

Mr. Larsson continued: “On behalf of PVH, I want to thank everyone who has been a part of the Heritage Brands team over the years, helping us become the strong, global company we are today.”

PVH will continue to own and operate the intimates and underwear businesses, led by Warner’s, as well as continue to operate its dress shirt and neckwear business, including under the brands being sold pursuant to a license from ABG.

PJ Solomon is serving as exclusive financial advisor to PVH on the transaction. Wachtell, Lipton, Rosen & Katz is acting as legal advisor.

About PVH Corp.

PVH is one of the world’s largest and most admired fashion companies, connecting with consumers in over 40 countries. Our global iconic brands include Calvin KleinandTOMMY HILFIGER. Our 140-year history is built on the strength of our brands, our team and our commitment to drive fashion forward for good. That’s the Power of Us. That’s the Power of PVH.

Follow us on Facebook, Instagram, Twitter and LinkedIn.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Forward-looking statements in this press release, including, without limitation, statements relating to PVH Corp.’s (the “Company”) future plans objectives, expectations and intentions are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not be anticipated, including, without limitation, (i) the Company’s plans, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) potential adverse reactions or changes to business relationships resulting from the completion of the transaction; (iii) unexpected costs, charges or expenses resulting from the transaction; (iv) litigation relating to the transaction; (v) the Company may be considered to be highly leveraged and uses a significant portion of its cash flows to service its indebtedness, as a result of which the Company might not have sufficient funds to operate its businesses in the manner it intends or has operated in the past; and (vi) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

PVH Corp.

Cindy Leggett-Flynn

EVP, Global Communication

908-255-7159 (m)

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Retail Department Stores Other Retail Fashion

MEDIA:

Logo
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CareTrust REIT Acquires Two Austin Skilled Nursing Facilities

SAN CLEMENTE, Calif., Aug. 02, 2021 (GLOBE NEWSWIRE) — CareTrust REIT, Inc. (Nasdaq: CTRE) today announced the acquisition of two skilled nursing facilities in the Austin, Texas metropolitan area. The 119-bed Sedona Trace Health & Wellness Center in Austin and the 122-bed Cedar Pointe Health & Wellness Center in Cedar Park will be operated by affiliates of The Ensign Group, Inc. (Nasdaq: ENSG), which took over operations effective August 1, 2021.

“We are elated to grow our relationship with Ensign not only because we enjoy over 3.0x EBITDAR lease coverage with them, but because we have seen firsthand their capability to create an unparalleled culture of patient care and quality outcomes and we are excited to see these facilities blossom under their stewardship,” explained CareTrust’s President and Chief Operating Officer, Dave Sedgwick.

Barry Port, Ensign’s Chief Executive Officer, added, “We are again thrilled with our growing relationship with CareTrust and are excited to announce that, in connection with this transaction, CareTrust extended the applicable lease term by ten years. We continue to look forward to many more years of working together with CareTrust on these and future opportunities.”

The two assets, which were both constructed in 2017, were purchased from the original developer in an off-market transaction for approximately $32.5 million inclusive of transaction costs. At closing, the two properties were added to one of the eight existing staggered-term master lease pools between CareTrust and Ensign. Ensign made an upfront rent reduction payment of $5.0 million at closing, and annual cash rent under the master lease was increased by approximately $2.2 million, resulting in a first-year cash-on-cash yield to CareTrust of approximately 8.0%. The initial term of the amended master lease was simultaneously extended by ten years, for a remaining initial term of approximately 17 years, with three five-year renewal options and CPI-based annual rent escalators. The acquisition was funded using CareTrust’s $600 million unsecured revolving credit facility.


About CareTrust™

CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.


About Ensign™

The Ensign Group, Inc.’s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 242 healthcare facilities, in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net.


Contact Information

CareTrust REIT, Inc.
(949) 542-3130
[email protected]



AB Value Calls for Immediate Board and Governance Changes at Rocky Mountain Chocolate Factory

AB Value Calls for Immediate Board and Governance Changes at Rocky Mountain Chocolate Factory

Scrutinizes Changes Described in Company’s July 21st Press Release Apparently Made Without Formal Board Meeting or Approval

Raises Serious Concerns About Lack of Full Disclosure About Former Director Capdevielle’s Resignation

Reveals CEO Bryan Merryman Served as Best Man of Director and Compensation Committee Chair, Brett Seabert; Questions Director Seabert’s Independence

WESTFIELD, N.J.–(BUSINESS WIRE)–
AB Value Management LLC, together with its affiliates (“AB Value”), one of the largest shareholders of Rocky Mountain Chocolate Factory, Inc. (NASDAQ: RMCF) (the “Company”), owning approximately 7.51% of the outstanding shares, today commented on a number of recent announcements by the Company that, in AB Value’s view, raise serious additional concerns about the Company’s Board of Directors (the “Board”) poor governance and management, which continue to harm shareholders.

Andrew Berger, Managing Member of AB Value, commented: “The Company has ignored virtually all of my input on governance during my first year and a half serving on the Board. After AB Value and other shareholders separately demanded significant changes in June, a majority of the Board appeared to have embraced these demands. Unfortunately, instead of negotiating in good faith to avoid a costly and distracting proxy fight, the Board wasted 35 days of shareholders’ time and capital.1 During this time, a majority of the Board has, in AB Value’s view, demonstrated poor judgment and governance practices.”

The following summarizes recent events that, in AB Value’s opinion, should cause shareholders of the Company to demand expedited changes to the Board:

The Company’s Press Release on July 21st about Board and Management Changes (the “July Announcement”) in AB Value’s View Fails to Disclose Material Facts and was Not Authorized by the Full Board

  • Mr. Berger, who continues to serve as a director on the Board, received no notice of a Board meeting or any request for Board action with respect to the management and Board compositional changes contemplated by the July Announcement. In addition, Mr. Berger never approved of, or saw in advance, the press release for the July Announcement even though it purports to speak on behalf of a unanimous Board. In AB Value’s view, the subject matter of the July Announcement was of such significance that, under both Delaware law and common business norms, it should have been preceded by a formal Board meeting and formal Board action.
  • The July Announcement omits that, more than one month earlier, AB Value suggested to the Board that the Chairperson and CEO roles be separated, that a management transition should commence immediately and that legacy directors needed to step down. Leading up to the July Announcement, AB Value had been misled by the Company into believing a reasonable settlement could be reached using AB Value’s suggestions as a foundation. Instead, the Company disavowed terms suggested by members of management and issued the July Announcement on the same day AB Value was led to believe the Board would be giving final comments to an already heavily negotiated settlement agreement.
  • Indeed, the July Announcement makes no reference to the fact that the announced changes were in direct reaction to input from AB Value. A majority of the Board, therefore, appears to wish to take credit for matters which, to our knowledge, they never gave serious consideration absent Mr. Berger’s advocacy as a director and recent public pressure from large shareholders.

The Company’s Recent Announcement About Former Director Capdevielle’s Resignation (the “Capdevielle Announcement”) is Misleading and Incomplete

  • On July 24, 2021, AB Value disclosed to the Board what AB Value viewed to be highly inappropriate public statements on social media by former director, Scott Capdevielle about certain religious denominations. AB Value thus demanded Mr. Capdevielle’s resignation from the Board. The Company failed to include this background information – which AB Value believes is material under any standard – in the Capdevielle Announcement.
  • AB Value welcomed Mr. Capdevielle’s resignation from the Board on July 26, 2021. However, shareholders should question the judgment of the Board members that installed him as chair of the Nominating Committee and that oversaw a management team that permitted him to become a franchisee of the Company’s frozen yogurt brands a number of years ago.
  • Mr. Capdevielle’s public statements lacked alignment with the Company’s Code of Conduct and core values (as stated by the Company in the Capdevielle Announcement). Shareholders should therefore also be on high alert about the majority of the directors that recently proposed that he serve as co-Chairperson of the Board as part of a settlement agreement with AB Value.

Shareholders Should Question the Validity of Director Seabert’s Independence

  • In the eighteen months of Mr. Berger’s tenure on the Board, neither the Company, nor Director Brett Seabert, nor Director/CEO Bryan Merryman ever revealed that Mr. Merryman also served as the Best Man at Mr. Seabert’s wedding. It was only from the attached newspaper clipping that AB Value learned of this close—and, until very recently, undisclosed—intimate connection between Mr. Seabert, who has served as the chair of the Compensation Committee since 2019, and the Company’s CEO. The wedding announcement from the Reno Gazette-Journal may be found here: https://www.newspapers.com/clip/52304131/reno-gazette-journal/
  • The Company’s lack of transparency more generally calls into question the independence of the Board, which has already been sharply criticized by proxy advisory firms in part because director Franklin Crail, a non-independent director and former executive to whom Mr. Merryman reported, also serves on the Compensation Committee contrary to what the NASDAQ Listing Rules would prescribe absent exceptional and limited circumstances.
  • Given the number of issues surrounding the Board’s independence, shareholders should, in AB Value’s opinion, be suspicious of how much actual independent, objective judgment was exercised when Mr. Merryman’s employment agreement, including lucrative change of control provisions, was entered into and approved in 2019 by the Board’s Compensation Committee. At the time (and as recently as of last week), the Compensation Committee was comprised of (i) Mr. Merryman’s former boss, (ii) Mr. Seabert, at whose wedding Mr. Merryman served as Best Man, and (iii) Mr. Capdevielle, who appears to have received a large consulting payment around the same time as the approval of Mr. Merryman’s employment agreement.2 It should hardly come as surprise, therefore, that a majority of shareholders that voted at the last annual meeting withheld or abstained on an advisory vote on the compensation of the Company’s named executive officers, including that of Mr. Merryman.

AB Value believes that shareholders should be shocked to learn of the foregoing instances of poor governance and stewardship by a majority of the Board. These actions have derailed AB Value’s efforts to negotiate a constructive solution with the Company. AB Value believes the terms it had been insisting on as part of a settlement would have helped to resolve many of these longstanding issues.

Shareholders should be concerned that the Company will never undergo the level of change that, in AB Value’s opinion, is truly necessary until the Board is reconstituted with a majority of shareholder-approved independent directors. In fact, shareholders appear have been voicing their concerns as well – directors Merryman, Crail and Seabert received approximately 36% – 48% votes against their re-election at the Company’s last annual meeting of shareholders. Along with previous years of poor vote results, they appear to lack sufficient objective mandate from shareholders to have any input into the critical changes required to re-position the Company.

AB Value is eager to continue to provide the catalyst for much needed change at the Company starting in the boardroom and looks forward to engaging with shareholders on these very important topics leading up to the Annual Meeting.

Important Additional Information

AB Value Partners, LP, AB Value Management LLC, Andrew T. Berger, Rhonda J. Parish, Mark Riegel, Sandra Elizabeth Taylor, and Mary Kennedy Thompson (collectively, the “Participants”) intend to file a preliminary proxy statement and an accompany form of proxy card with the SEC to solicit proxies from shareholders of the Company for use at the Annual Meeting. THE PARTICIPANTS STRONGLY ADVISE ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Such proxy materials will be available at no charge on the SEC’s website at http://www.sec.gov. In addition, the Participants in this proxy solicitation will provide copies of the proxy statement without charge, upon request. Requests for copies should be directed to the Participants’ proxy solicitor.

Certain Information Regarding the Participants

In accordance with Rule 14a-12(a)(1)(i) under the Securities Exchange Act of 1934, as amended, the Participants in the proxy solicitation are: AB Value Partners, LP, AB Value Management LLC, Andrew T. Berger, Rhonda J. Parish, Mark Riegel, Sandra Elizabeth Taylor, and Mary Kennedy Thompson. As of the date hereof, AB Value Partners, LP directly owns 224,855 shares of common stock, $0.01 par value per share of the Company (“Common Stock”). As of the date hereof, AB Value Management LLC directly owns 235,334 shares of Common Stock. As of the date hereof, Ms. Thompson directly owns 2,000 shares of Common Stock. As of the date hereof, none of Mr. Berger, Ms. Parish, Mr. Riegel, or Ms. Taylor directly own any shares of Common Stock. However, by virtue of the relationship among the Participants and the formation by them of a Section 13(d) group, all the Participants, individually, are deemed to beneficially own the 460,189 shares of Common Stock owned in the aggregate by AB Value Partners, LP and AB Value Management LLC.


1 Calculated based on June 28, 2021, the date on which AB Value submitted its notice of intent to nominate directors at the Company’s 2021 Annual Meeting of Shareholders (the “Annual Meeting”).

2 The Compensation Committee awarded Mr. Capdevielle compensation totaling $86,390 for his service during fiscal year 2020, and approved an equity grant to Mr. Capdevielle with a grant date fair value of $91,900 for a special project related to brand vision and opportunities. See the Company’s definitive proxy statement, filed with the Securities and Exchange Commission (the “SEC”) on August 13, 2020.

John Glenn Grau

InvestorCom LLC

(203) 295-7841

KEYWORDS: United States North America New Jersey

INDUSTRY KEYWORDS: Retail Professional Services Food/Beverage Finance

MEDIA:

Otter Tail Corporation Announces Second Quarter Earnings and Increases 2021 Earnings Per Share Guidance

Otter Tail Corporation Announces Second Quarter Earnings and Increases 2021 Earnings Per Share Guidance

Board of Directors Declares Quarterly Dividend of $0.39 Per Share

FERGUS FALLS, Minn.–(BUSINESS WIRE)–
Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2021.

SUMMARY

Compared to the quarter ended June 30, 2020:

  • Consolidated operating revenues increased 48.2% to $285.6 million.
  • Consolidated net income increased 147.7% to $42.1 million primarily driven by strong Plastics segment performance resulting from unique market conditions.
  • Diluted earnings per share increased 140.5% to $1.01 per share.

The corporation increases its 2021 diluted earnings per share guidance range to $3.50 to $3.65 reflecting a range of 50% to 56% growth off of 2020 reported $2.34 diluted earnings per share.

CEO OVERVIEW

“Otter Tail Corporation, through the efforts of our employees and unique market conditions, achieved outstanding financial results during the second quarter of 2021,” said President and CEO Chuck MacFarlane. “Each operating company improved net income during the second quarter compared with the same period a year ago. The Electric segment had a record second quarter in net earnings. The Plastics segment continues its outstanding year driven by PVC resin supply constraints, which initially occurred in the first quarter and continued through the second quarter, have resulted in continued increasing PVC pipe prices and margins at levels not previously experienced. These increased results are primarily due to the unusual and infrequent impact resulting from the extreme cold weather in February that caused resin suppliers to temporarily close various petrochemical plants in the Gulf Coast. We expect these conditions will moderate during 2022 as supply constraints are expected to continue for the remainder of 2021.

“On May 27, 2021 we retired our 140-megawatt (MW) Hoot Lake Plant marking the end of 100 years of coal-fired generation at the site. Our employees did a fantastic job operating this facility reliably and safely up to its retirement. Our replacement generation includes Merricourt, our 150 MW wind facility, and Astoria Station, our 245 MW natural gas-fired combustion turbine generation facility, which was made available to the MISO market on April 30, 2021. This facility, with fast start capability, complements our wind generation with more dispatchable capacity than Hoot Lake Plant, and with projected carbon emissions 85 percent less compared to Hoot Lake Plant’s 2005 emission levels.

“We continue to make progress on Otter Tail Power’s $60.0 million, 49.9 MW Hoot Lake Solar project, which will be constructed on and near Hoot Lake Plant property in Fergus Falls, Minnesota. We recently received approval of our Conditional Use Permit, which is our last major permit requirement. We received a favorable regulatory order from the Minnesota Public Utilities Commission (MPUC) when they approved the project in March with 100 percent allocation of costs and benefits to Minnesota customers and eligibility for recovery through the Minnesota renewable rider. The location of Hoot Lake Solar offers us a unique opportunity to re-use our existing Hoot Lake transmission rights, substation and land.

“Based on our current dispatch levels of Big Stone Plant and Coyote Station our target is to reduce carbon emissions from our owned generation resources approximately 50 percent from 2005 levels by 2025 and 97 percent by 2050. Up to 35 percent of our energy is projected to come from renewable resources by 2023.

“We continue to work through the Minnesota rate case, and on January 1, 2021, Otter Tail Power implemented approved interim rates in Minnesota in connection with its revenue increase request filed with the MPUC in November 2020. Investment in cleaner energy generation and smarter technologies are primarily driving this request along with rising costs for providing electric service. In a filing submitted to the MPUC on April 30, 2021, Otter Tail Power lowered its requested net annual revenue increase from its initial request of $14.5 million to $8.2 million, primarily due to a reduction in operating costs from amounts included in its November 2020 filing. The cost reductions result primarily from lower depreciation expense on our wind generation assets due to the extension of depreciable lives from 25 to 35 years that was approved by the MPUC and a reduction in postretirement benefit costs. We anticipate a decision from the Minnesota Public Utilities Commission in the fourth quarter.

“Otter Tail Power continues to benefit from strong rate base growth investments. These investments represent over 85 percent of our total capital spending over the next five years and include regulated investments in renewable generation, technology and infrastructure, and transmission assets. We expect this to result in a projected compounded annual growth rate of approximately 5 percent in utility rate base from year-end 2020 through 2025 and to deliver value to customers and shareholders. We continue to make system investments to meet our customers’ expectations, reduce operating and maintenance costs, reduce emissions and improve reliability and safety.

“Otter Tail Power is planning to file its Minnesota Integrated Resource Plan in all three of its jurisdictions in September 2021. We expect this filing will result in additional capital expenditures that will be incremental to our current five-year capital expenditure plan.

“Our Manufacturing Segment increased revenues and net income $38.3 million and $5.5 million, respectively, compared to the second quarter of 2020, due to strong end market demand and higher scrap metal sales prices at BTD Manufacturing. Steel prices, which are a pass through to customers, continue to exceed historical levels as mill capacity has been slow to come online after capacity reductions in 2020 related to COVID-19, creating supply chain challenges as the mills struggle to keep up with demand.

“Our Plastics Segment produced a 339% increase in quarterly earnings in the second quarter of 2021. PVC resin availability in the first quarter was constrained due to the impact of the February winter storms. These supply constraints continued into the second quarter and led to increased sales prices for PVC pipe, increased resin costs and increased operating margins resulting in a record second quarter.

“Our long-term focus remains on executing our growth strategies. For the utility, our strategy is to continue to invest in rate base growth opportunities and drive efficiency within our operating and maintenance expenses, which will lower our overall risk, create a more predictable earnings stream, maintain our credit quality and preserve our ability to pay dividends. Over time, we expect the electric utility business will provide approximately 70 to 75 percent of our overall earnings.

“The utility is complemented by well-run, strategic manufacturing and plastic pipe businesses, which provide organic growth opportunities from new products and services, market expansion and increased efficiencies. We expect these companies will provide approximately 25 to 30 percent of our earnings over the long term.

“We are increasing our 2021 earnings per share guidance to a range of $3.50 to $3.65 from our previous range announced in May 2021 of $2.47 to $2.62.”

QUARTERLY DIVIDEND

On August 2, 2021 the corporation’s Board of Directors declared a quarterly common stock dividend of $0.39 per share. This dividend is payable September 10, 2021 to shareholders of record on August 13, 2021.

CASH FLOWS AND LIQUIDITY

Our consolidated cash provided by operating activities for the six months ended June 30, 2021 was $68.6 million compared with $73.9 million for the six months ended June 30, 2020.

Investing activities for the six months ended June 30, 2021 included capital expenditures of $76.9 million compared with $119.8 million for the six months ended June 30, 2020. The decrease in capital expenditures was primarily related to Astoria Station and the Merricourt Wind Energy Center (Merricourt) being under construction in the first and second quarters of 2020 with the capital spend being substantially complete for both projects by year-end 2020.

Financing activities for the six months ended June 30, 2021 included net proceeds from short-term borrowings of $47.0 million and common dividend payments of $32.4 million. The proceeds from short-term borrowings were primarily used to fund construction expenditures. Financing activities for the six months ended June 30, 2020 included proceeds of $35.0 million from the issuance of long-term debt at Otter Tail Power Company, $35.2 million in net short-term borrowings, and $27.2 million from the issuance of common stock. Proceeds from the debt and equity issuances were used to fund construction program expenditures in 2020. We paid $29.9 million in common dividends during the six months ended June 30, 2020.

On June 10, 2021, we completed a senior unsecured note offering pursuant to which we agreed to issue $230.0 million of Otter Tail Power Company senior unsecured notes, with $140.0 million to be issued in November 2021 and $90.0 million to be issued in May 2022. We intend to use the proceeds of the notes to refinance existing long-term indebtedness, including long-term debt instruments with outstanding principal balances of $140.0 million and $30.0 million, which mature in December 2021 and August 2022, respectively, and for general corporate purposes.

The following table presents the status of the corporation’s lines of credit at June 30, 2021 and December 31, 2020:

 

 

 

2021

 

2020

(in thousands)

Line Limit

 

 

Amount

Outstanding

 

 

Letters

of Credit

 

 

Amount

Available

 

 

Amount

Available

 

Otter Tail Corporation Credit Agreement

$

170,000

 

 

$

59,245

 

 

$

 

 

$

110,755

 

 

$

104,834

 

Otter Tail Power Company Credit Agreement

170,000

 

 

68,712

 

 

12,671

 

 

88,617

 

 

140,068

 

Total

$

340,000

 

 

$

127,957

 

 

$

12,671

 

 

$

199,372

 

 

$

244,902

 

Both credit agreements are in place until October 31, 2024.

 

SEGMENT PERFORMANCE

 

Electric Segment

 

 

Three Months Ended June 30,

 

 

 

 

($ in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Retail Revenues

$

88,987

 

 

$

85,553

 

 

$

3,434

 

 

4.0

%

Transmission Services Revenues

11,840

 

 

9,673

 

 

2,167

 

 

22.4

 

Wholesale Revenues

3,260

 

 

765

 

 

2,495

 

 

326.1

 

Other Electric Revenues

2,068

 

 

2,162

 

 

(94

)

 

(4.3

)

Total Electric Revenues

106,155

 

 

98,153

 

 

8,002

 

 

8.2

 

Net Income

$

15,433

 

 

$

13,306

 

 

$

2,127

 

 

16.0

%

 

 

 

 

 

 

 

 

Retail mwh Sales

1,086,631

 

 

1,033,053

 

 

53,578

 

 

5.2

%

Heating Degree Days (HDDs)

533

 

 

635

 

 

(102

)

 

(16.1

)

Cooling Degree Days (CDDs)

237

 

 

170

 

 

67

 

 

39.4

 

 

 

 

 

 

 

 

 

The following table shows heating and cooling degree days as a percent of normal.

 

Three Months Ended June 30,

 

2021

 

 

2020

 

HDDs

101.1

%

 

122.1

%

CDDs

206.1

%

 

156.0

%

 

 

 

 

The following table summarizes the estimated effect on diluted earnings per share of the difference in retail kilowatt-hour (kwh) sales under actual weather conditions and expected retail kwh sales under normal weather conditions in 2021 and 2020.

 

2021 vs

Normal

 

2021 vs

2020

 

2020 vs

Normal

Effect on Diluted Earnings Per Share

$

0.03

 

 

$

 

 

$

0.03

 

 

Retail Revenues increased $3.4 million primarily due to the following:

  • A $1.5 million increase in new retail revenues from an interim rate increase in Minnesota, net of estimated refunds, effective January 1, 2021 in connection with our rate case filed in November 2020.
  • A $1.5 million increase in retail revenue from commercial and industrial customers primarily due to increased demand as volumes improve from 2020, which was negatively impacted by COVID-19.
  • A $1.4 million increase in revenues primarily related to the recovery of Merricourt and Astoria Station project costs and operating expenses.
  • Recovery of increased conservation improvement program expenditures as well as increased transmission rider revenues.

These increases in revenue were partially offset by a $2.1 million decrease in fuel recovery revenues largely due to credits provided to customers from increased margins on wholesale sales.

Transmission Services Revenues increased $2.2 million primarily due to higher transmission volume from increased electrical demand as well as increased generator interconnection revenues.

Wholesale Revenues increased $2.5 million as a result of a 147.2% increase in wholesale sales volumes and a 72.4% increase in wholesale prices driven by high market demand for wholesale energy.

Production Fuel costsincreased $3.4 million mainly as a result of a 42.0% increase in kwhs generated from our fuel-burning plants due to higher demand and favorable prices for energy in wholesale markets.

Purchased Power costs to serve retail customers decreased $2.5 million primarily due to a 15.7% decrease in the volume of purchased power as our recent capacity additions provide additional generation resources to serve customer demand.

Operating and MaintenanceExpense increased $3.6 million mainly due to:

  • $1.4 million of Merricourt and Astoria Station operating and maintenance expenses incurred in the second quarter of 2021 as these facilities are now commercially operational.
  • A $0.8 million increase in transmission tariff expenses.
  • Other additional expenses including an increase in conservation improvement program expenditures, which are recovered through retail rates, increased vegetative maintenance expenses and plant maintenance expenses.

These expense increases were partially offset by, among other items, lower bad debt expense due to improving customer collections as the economic impact of COVID-19 has eased.

Depreciation and Amortization expense increased $2.4 million primarily due to Merricourt and Astoria Station being placed in service in the fourth quarter of 2020 and the first quarter of 2021, respectively.

Interest Charges increased $1.0 million primarily due to additional interest expense from a $40.0 million long-term debt issuance in August 2020, a higher level of short-term debt borrowings outstanding in 2021 and a lower level of capitalized interest due to the completion and placement in service of Astoria Station in the first quarter of 2021.

Other Income decreased $1.1 million driven by lower allowance for equity funds used during construction due to the completion of Astoria Station in the first quarter of 2021.

Income Tax Expense decreased $3.0 million due to earning production tax credits on Merricourt generation in 2021. The tax benefits of these credits are passed through to retail customers in each of our jurisdictions.

Manufacturing Segment

 

Three Months Ended June 30,

 

 

 

 

(in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Operating Revenues

$

84,284

 

 

$

45,948

 

 

$

38,336

 

 

83.4

%

Net Income

5,705

 

 

238

 

 

5,467

 

 

n/m

 

Manufacturing segment revenues and net income increased $38.3 million and $5.5 million, respectively, primarily due to increased sales volumes at BTD. Sales volumes in the second quarter of 2020 were negatively impacted by COVID-19 as customers implemented temporary plant shutdowns due to the pandemic. Customer demand and sales volumes in the second quarter of 2021 increased 52.4% compared to 2020 and included increases across all end markets. Also contributing to the improved financial performance was an increase in scrap revenues primarily due to increased scrap metal prices but also higher volumes, and improved gross profit margins resulting from an increase in production volumes. Operating revenues were also impacted by increased material costs, which are passed through to customers.

Partially offsetting the increase in net income from increased sales volumes, scrap revenues and gross profit margins is an increase in operating expenses, with second quarter of 2020 operating expenses impacted from initiatives taken to reduce our cost structure to mitigate the impact of declining sales volumes from the effects of the COVID-19 pandemic. Second quarter of 2021 operating expenses were impacted by increased incentive based compensation, travel and recruitment costs necessary to support higher business volumes.

Segment operating revenues and net income also benefited from increased product pricing and higher levels of horticulture sales at T.O. Plastics, along with increased gross profit margins resulting from higher production volumes.

Plastics Segment

 

Three Months Ended June 30,

 

 

 

 

(in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Operating Revenues

$

95,169

 

 

$

48,679

 

 

$

46,490

 

 

95.5

%

Net Income

22,544

 

 

5,130

 

 

17,414

 

 

339.5

 

Plastics segment revenues and net income increased $46.5 million and $17.4 million, respectively. The price per pound of polyvinyl chloride (PVC) pipe sold increased 73.9% in the second quarter of 2021 compared to the same period last year and exceeded the 52.9% increase in the cost of PVC resin and other input materials. The increase in sale prices was largely the result of continued PVC resin supply constraints as resin production facilities recover from plant shutdowns in the first quarter of 2021. The undersupply of resin has led to limited pipe inventory across the country. Significant global demand for PVC resin has also impacted PVC costs with export prices exceeding domestic prices in the second quarter. Pounds of pipe sold in the second quarter of 2021 increased 12.4% from the same period last year, as sales volumes in the second quarter of 2020 were negatively impacted by COVID-19 as distributors reduced inventory levels due to the uncertainty over the impact of the pandemic.

Corporate Costs

 

Three Months Ended June 30,

 

 

 

 

(in thousands)

2021

 

 

2020

 

 

$ Change

 

 

% Change

 

Losses before Income Taxes

$

2,459

 

 

$

2,093

 

 

$

366

 

 

17.5

%

Income Tax Benefit

(846

)

 

(400

)

 

(446

)

 

111.5

 

Net Loss

$

1,613

 

 

$

1,693

 

 

$

(80

)

 

(4.7

)%

Our corporate net loss in 2021 was consistent with the same period last year as higher levels of performance based compensation and lower market-based gains on our corporate-owned life insurance policies in 2021 were offset by an increased income tax benefit. The increase in the income tax benefit is primarily the result of the impact of non-taxable transactions and changes in estimates of our annual effective tax rate.

2021 BUSINESS OUTLOOK

We are increasing our 2021 diluted earnings per share guidance range to $3.50 to $3.65 in light of second quarter results and forecasts for the remainder of 2021 driven by expected performance in our Plastics Segment. The midpoint of our revised 2021 earnings per share guidance of $3.58 per share reflects a 53% growth rate off 2020 diluted earnings per share of $2.34.

Segment components of our revised 2021 diluted earnings per share guidance range compared with 2020 actual earnings and prior guidance are as follows:

 

2020 EPS

by Segment

 

2021 EPS Guidance

February 15, 2021

 

2021 EPS Guidance

May 3, 2021

 

2021 EPS Guidance

August 2, 2021

 

 

Low

 

High

 

Low

 

High

 

Low

 

High

Electric

$

1.63

 

 

$

1.80

 

 

$

1.83

 

 

$

1.71

 

 

$

1.74

 

 

$

1.71

 

 

$

1.74

 

Manufacturing

0.27

 

 

0.28

 

 

0.32

 

 

0.28

 

 

0.32

 

 

0.43

 

 

0.47

 

Plastics

0.67

 

 

0.52

 

 

0.56

 

 

0.73

 

 

0.77

 

 

1.64

 

 

1.68

 

Corporate

(0.23

)

 

(0.21

)

 

(0.17

)

 

(0.25

)

 

(0.21

)

 

(0.28

)

 

(0.24

)

Total

$

2.34

 

 

$

2.39

 

 

$

2.54

 

 

$

2.47

 

 

$

2.62

 

 

$

3.50

 

 

$

3.65

 

Return on Equity

11.6

%

 

11.1

%

 

11.8

%

 

11.5

%

 

12.2

%

 

16.4

%

 

17.1

%

The following items contribute to our 2021 earnings guidance:

  • We are maintaining our Electric segment guidance from our May 3, 2021 earnings release.
  • We continue to expect Electric segment earnings in 2021 will exceed 2020 earnings driven by the following factors:

    • Our Merricourt and Astoria Station projects being commercially operational and our $410 million total investment in these projects fully reflected in our rate base, with a recovery mechanism in place in all three jurisdictions, partially offset by increased operating and maintenance, depreciation and property tax expenses associated with these investments, and increased interest expense due to debt issuances in 2020.
    • The impact of our filed Minnesota 2021 rate case. The MPUC has approved an interim rate increase of 3.2% or $6.9 million in annual revenues.

These increases are partially offset by:

  • Increased non-labor operating and maintenance expenses related to a planned outage this fall at Big Stone Plant of $3.9 million in 2021 and increased postretirement expense caused by a decrease in the discount rate and long-term rate of return on plan assets.
  • We are increasing our previous 2021 guidance for our Manufacturing segment and continue to expect segment earnings to increase compared with 2020 based on:

    • Strong performance at BTD through the first six months of the year driven by increased sales volumes across all end markets, improved scrap metal prices and improved operating margins resulting from an increase in production volumes. We expect these conditions to continue as end markets improve as our customers look to build inventory to fill the shortages created by the COVID-19 pandemic. Scrap metal revenues are now expected to be higher based on current scrap metal prices.
    • We also expect an increase in earnings from T.O. Plastics as compared to the previous guidance due to strong first half performance as well as strong horticulture markets and improving operating margins driven by product price increases implemented in the first six months as well as improved productivity in our manufacturing processes.
    • Decreased mill capacity due to COVID-19 has created raw material availability challenges as the steel mills struggle to keep up with demand. This has created concerns over our ability to obtain the steel needed to meet customer demands and continues to keep steel prices elevated above historic levels. We continue to work on increasing staffing levels to keep up with strong demand and to mitigate the impact of increasing expedited freight costs while maintaining or improving labor efficiencies.
    • Backlog for the manufacturing companies of approximately $168 million for 2021 compared with $93 million one year ago.
  • We are increasing our previous 2021 guidance for our Plastics segment as operating margins during the first six months have been higher than expected driven by unique market conditions resulting from PVC resin supply constraints that began in the first quarter. These unexpected conditions arose from the extreme cold weather in February which caused resin suppliers to temporarily close various petrochemical plants. These market conditions created by this event continued into the second quarter and are expected to impact the rest of 2021. This resulted in continued increases in PVC pipe prices and operating margins at levels not previously experienced in the industry. Pounds of pipe sold in 2021 are now expected to be slightly higher than 2020 driven by strong construction and municipal markets. Resin suppliers continued to have customers on resin allocations and increase prices for raw materials due to market conditions such as availability constraints related to feedstock supplies for resin and a strong export market that has higher resin prices than the domestic market. We currently expect the supply constraints to continue for the remainder of 2021 with market conditions expected to return to more normal levels during 2022.
  • Corporate costs, net of tax, are now expected to be higher driven by higher employee benefit costs related to the strong financial performance in 2021 and potential contributions to the Otter Tail Corporation Foundation.

CONFERENCE CALL AND WEBCAST

The corporation will host a live webcast on Tuesday, August 3, 2021, at 10:00 a.m. CDT to discuss its financial and operating performance.

The presentation will be posted on our website before the webcast. To access the live webcast, go to www.ottertail.com/presentations and select “Webcast.” Please allow time prior to the call to visit the site and download any software needed to listen in. An archived copy of the webcast will be available on our website shortly after the call.

If you are interested in asking a question during the live webcast, call 877-312-8789. For listen-only mode, call 866-634-1342.

FORWARD-LOOKING STATEMENTS

Except for historical information contained here, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “possible,” “potential,” “should,” “will,” “would” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which include statements regarding 2021 earnings and earnings per share, long-term earnings, earnings per share growth and earnings mix, anticipated levels of energy generation from renewable resources, anticipated reductions in carbon dioxide emissions, future investments and capital expenditures, rate base levels and rate base growth, future raw materials costs, future operating revenues and operating results, and expectations regarding regulatory proceedings, as well as other assumptions and statements involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, uncertainty of the impact and duration of the COVID-19 pandemic, long-term investment risk, seasonal weather patterns and extreme weather events, counterparty credit risk, future business volumes with key customers, reductions in our credit ratings, our ability to access capital markets on favorable terms, assumptions and costs relating to funding our employee benefit plans, our subsidiaries’ ability to make dividend payments, cyber security threats or data breaches, the impact of government legislation and regulation, including foreign trade policy and environmental laws and regulations, the impact of climate change, including compliance with legislative and regulatory changes to address climate change, operational and economic risks associated with our electric generating and manufacturing facilities, risks associated with energy markets, the availability and pricing of resource materials, attracting and maintaining a qualified and stable workforce, and changing macroeconomic and industry conditions. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

Category: Earnings

About the Corporation: Otter Tail Corporation has interests in diversified operations that include an electric utility and manufacturing businesses. Otter Tail Corporation stock trades on the Nasdaq Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are in Fergus Falls, Minnesota, and Fargo, North Dakota.

 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except per-share amounts)

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

106,155

 

 

$

98,130

 

 

$

229,855

 

 

$

218,000

 

Product Sales

179,453

 

 

94,626

 

 

317,463

 

 

209,503

 

Total Operating Revenues

285,608

 

 

192,756

 

 

547,318

 

 

427,503

 

Operating Expenses

 

 

 

 

 

 

 

Electric Production Fuel

12,164

 

 

8,788

 

 

26,878

 

 

22,523

 

Electric Purchased Power

11,135

 

 

13,682

 

 

30,395

 

 

32,512

 

Electric Operating and Maintenance Expense

36,729

 

 

33,179

 

 

78,150

 

 

73,794

 

Cost of Products Sold (excluding depreciation)

122,578

 

 

73,832

 

 

224,555

 

 

159,711

 

Other Nonelectric Expenses

15,669

 

 

10,762

 

 

29,362

 

 

22,662

 

Depreciation and Amortization

23,169

 

 

20,436

 

 

45,295

 

 

40,835

 

Electric Property Taxes

4,342

 

 

4,168

 

 

8,662

 

 

8,268

 

Total Operating Expenses

225,786

 

 

164,847

 

 

443,297

 

 

360,305

 

Operating Income

59,822

 

 

27,909

 

 

104,021

 

 

67,198

 

Other Income and Expense

 

 

 

 

 

 

 

Interest Charges

9,555

 

 

8,662

 

 

18,953

 

 

16,785

 

Nonservice Cost Components of Postretirement Benefits

624

 

 

868

 

 

1,006

 

 

1,739

 

Other Income (Expense)

734

 

 

2,410

 

 

1,892

 

 

2,021

 

Income Before Income Taxes

50,377

 

 

20,789

 

 

85,954

 

 

50,695

 

Income Tax Expense

8,308

 

 

3,808

 

 

13,556

 

 

9,446

 

Net Income

$

42,069

 

 

$

16,981

 

 

$

72,398

 

 

$

41,249

 

 

 

 

 

 

 

 

 

Weighted-Average Common Shares Outstanding:

 

 

 

 

 

 

 

Basic

41,500

 

 

40,513

 

 

41,478

 

 

40,365

 

Diluted

41,818

 

 

40,677

 

 

41,759

 

 

40,561

 

Earnings Per Share:

 

 

 

 

 

 

 

Basic

$

1.01

 

 

$

0.42

 

 

$

1.75

 

 

$

1.02

 

Diluted

$

1.01

 

 

$

0.42

 

 

$

1.73

 

 

$

1.02

 

 
 

OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)

 

(in thousands)

June 30,

2021

 

 

December 31,

2020

 

 

 

 

 

Assets

 

 

 

Current Assets

 

 

 

Cash and Cash Equivalents

$

1,480

 

 

$

1,163

 

Receivables, net of allowance for credit losses

163,424

 

 

113,959

 

Inventories

103,024

 

 

92,165

 

Regulatory Assets

23,250

 

 

21,900

 

Other Current Assets

13,723

 

 

5,645

 

Total Current Assets

304,901

 

 

234,832

 

Noncurrent Assets

 

 

 

Investments

55,809

 

 

51,856

 

Property, Plant and Equipment, net of accumulated depreciation

2,073,009

 

 

2,049,273

 

Regulatory Assets

160,018

 

 

168,395

 

Intangible Assets, net of accumulated amortization

9,594

 

 

10,144

 

Goodwill

37,572

 

 

37,572

 

Other Noncurrent Assets

30,684

 

 

26,282

 

Total Noncurrent Assets

2,366,686

 

 

2,343,522

 

Total Assets

$

2,671,587

 

 

$

2,578,354

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current Liabilities

 

 

 

Short-Term Debt

$

127,957

 

 

$

80,997

 

Current Maturities of Long-Term Debt

139,963

 

 

140,087

 

Accounts Payable

131,214

 

 

130,805

 

Accrued Salaries and Wages

23,775

 

 

26,908

 

Accrued Taxes

14,531

 

 

18,831

 

Regulatory Liabilities

17,301

 

 

16,663

 

Other Current Liabilities

28,743

 

 

22,495

 

Total Current Liabilities

483,484

 

 

436,786

 

Noncurrent Liabilities and Deferred Credits

 

 

 

Pensions Benefit Liability

102,331

 

 

114,055

 

Other Postretirement Benefits Liability

67,538

 

 

67,359

 

Regulatory Liabilities

231,766

 

 

233,973

 

Deferred Income Taxes

167,612

 

 

153,376

 

Deferred Tax Credits

17,033

 

 

17,405

 

Other Noncurrent Liabilities

62,160

 

 

60,002

 

Total Noncurrent Liabilities and Deferred Credits

648,440

 

 

646,170

 

Commitments and Contingencies

 

 

 

Capitalization

 

 

 

Long-Term Debt, net of current maturities

624,540

 

 

624,432

 

Shareholders’ Equity

 

 

 

Common Shares

207,694

 

 

207,349

 

Additional Paid-In Capital

417,870

 

 

414,246

 

Retained Earnings

297,850

 

 

257,878

 

Accumulated Other Comprehensive Loss

(8,291)

 

 

(8,507)

 

Total Shareholders’ Equity

915,123

 

 

870,966

 

Total Capitalization

1,539,663

 

 

1,495,398

 

Total Liabilities and Shareholders’ Equity

$

2,671,587

 

 

$

2,578,354

 

 
 

OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

 

 

Six Months Ended June 30,

(in thousands)

2021

 

 

2020

 

 

 

 

 

Operating Activities

 

 

 

Net Income

$

72,398

 

 

$

41,249

 

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

 

 

 

Depreciation and Amortization

45,295

 

 

40,835

 

Deferred Tax Credits

(372

)

 

(657

)

Deferred Income Taxes

11,327

 

 

9,472

 

Change in Deferred Debits and Other Assets

5,749

 

 

5,565

 

Discretionary Contribution to Pension Plan

(10,000

)

 

(11,200

)

Change in Noncurrent Liabilities and Deferred Credits

(3,710

)

 

5,178

 

Allowance for Equity Funds Used During Construction

(172

)

 

(1,858

)

Stock Compensation Expense

5,524

 

 

4,007

 

Other, Net

(3,246

)

 

(147

)

Cash (Used for) Provided by Current Assets and Current Liabilities:

 

 

 

Change in Receivables

(49,465

)

 

(3,929

)

Change in Inventories

(10,859

)

 

8,097

 

Change in Other Current Assets

(8,080

)

 

(1,066

)

Change in Payables and Other Current Liabilities

12,375

 

 

(23,562

)

Change in Interest and Income Taxes Receivable/Payable

1,810

 

 

1,917

 

Net Cash Provided by Operating Activities

68,574

 

 

73,901

 

Investing Activities

 

 

 

Capital Expenditures

(76,891

)

 

(119,830

)

Proceeds from Disposal of Noncurrent Assets

4,562

 

 

3,953

 

Cash Used for Investments and Other Assets

(4,074

)

 

(5,128

)

Net Cash Used in Investing Activities

(76,403

)

 

(121,005

)

Financing Activities

 

 

 

Changes in Checks Written in Excess of Cash

(4,586

)

 

550

 

Net Short-Term Borrowings

46,960

 

 

35,239

 

Proceeds from Issuance of Common Stock

 

 

27,225

 

Common Stock Issuance Expenses

(67

)

 

(374

)

Payments for Shares Withheld for Employee Tax Obligations

(1,507

)

 

(2,069

)

Proceeds from Issuance of Long-Term Debt

 

 

35,000

 

Short-Term and Long-Term Debt Issuance Expenses

(59

)

 

(179

)

Payments for Retirement of Long-Term Debt

(169

)

 

(90

)

Dividends Paid

(32,426

)

 

(29,885

)

Net Cash Provided by Financing Activities

8,146

 

 

65,417

 

Net Change in Cash and Cash Equivalents

317

 

 

18,313

 

Cash and Cash Equivalents at Beginning of Period

1,163

 

 

21,199

 

Cash and Cash Equivalents at End of Period

$

1,480

 

 

$

39,512

 

 

OTTER TAIL CORPORATION

SEGMENT RESULTS (unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands)

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

Operating Revenues

 

 

 

 

 

 

 

Electric

$

106,155

 

 

$

98,130

 

 

$

229,855

 

 

$

218,000

 

Manufacturing

84,284

 

 

45,947

 

 

160,107

 

 

114,427

 

Plastics

95,169

 

 

48,679

 

 

157,356

 

 

95,076

 

Total Operating Revenues

$

285,608

 

 

$

192,756

 

 

$

547,318

 

 

$

427,503

 

 

 

 

 

 

 

 

 

Operating Income (Loss)

 

 

 

 

 

 

 

Electric

$

23,632

 

 

$

22,596

 

 

$

50,309

 

 

$

49,516

 

Manufacturing

7,980

 

 

623

 

 

15,524

 

 

7,464

 

Plastics

30,530

 

 

7,090

 

 

43,116

 

 

14,557

 

Corporate

(2,320

)

 

(2,400

)

 

(4,928

)

 

(4,339

)

Total Operating Income

$

59,822

 

 

$

27,909

 

 

$

104,021

 

 

$

67,198

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

 

 

 

 

 

 

Electric

$

15,433

 

 

$

13,306

 

 

$

33,019

 

 

$

29,488

 

Manufacturing

5,705

 

 

238

 

 

11,089

 

 

5,165

 

Plastics

22,544

 

 

5,130

 

 

31,692

 

 

10,579

 

Corporate

(1,613

)

 

(1,693

)

 

(3,402

)

 

(3,983

)

Total Net Income

$

42,069

 

 

$

16,981

 

 

$

72,398

 

 

$

41,249

 

 

Media contact:

Stephanie Hoff, Director of Corporate Communications, (218) 739-8535 or (218) 205-6179

Investor contact:

Tyler Akerman, Manager of Investor Relations, (218) 998-7110 or (800) 664-1259

KEYWORDS: United States North America Minnesota

INDUSTRY KEYWORDS: Packaging Chemicals/Plastics Utilities Oil/Gas Manufacturing Energy Steel

MEDIA: