2021 Third Quarter Earnings Webcast October 25, 2021

Bob Rowe,

CEO

Brian Bird,

President & COO

Crystal Lail,

Vice President & CFO

Presenting Today

Forward Looking Statements

During the course of this presentation, there will be forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes,"

"seeks," or "will."

The information in this presentation is based upon our current expectations as of the date of this document unless otherwise noted. Our actual future business and financial performance may differ materially and adversely from our expectations expressed in any forward-looking statements. We undertake no obligation to revise or publicly update our forward-looking statements or this presentation for any reason. Although our expectations and beliefs are based on reasonable assumptions, actual results may differ materially. The factors that may affect our results are listed in certain of our press releases and disclosed in the Company's 10-K and 10-Q along with other public filings with the SEC.

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  • Net income for the third quarter of 2021 increased $5.7 million, as compared to the same period in 2020.
    • Diluted earnings per share increased $0.10 as compared to the same period in 2020.
    • After adjusting for weather differences and a non-cash liability adjustment, Non-GAAP* adjusted earnings per share increased $0.06 as compared to the same period in 2020.
  • The Board of Directors declared a quarterly dividend of $0.62 per share payable December 31, 2021 to shareholders of record as of December 15, 2021.
  • During the quarter, we issued 1,040,085 shares of our common stock under our Equity Distribution Agreement at an average price of $63.13, for net proceeds of $64.8 million
    • $121.1 million net proceeds received in total under the $200 million program.

Significant Events

Boulder River, Montana

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* See slides 10, 29, 36 & 37 for additional information and Non-GAAP disclosures.

Summary Financial Results

(Third Quarter)

(1)

(1) Gross Margin, defined as revenues less cost of sales, is a non -GAAP Measure .

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See Appendix slide 36 for a reconciliation and additional disclosure.

Gross Margin

(Third Quarter)

(dollars in millions)

Three Months Ended September 30,

2021

2020

Variance

Electric

$ 198.1

$ 183.0

$ 15.1

8.3%

Natural Gas

29.2

29.6

(0.4)

(1.4%)

Total Gross Margin (1)

$ 227.3

$ 212.6

$ 14.7

6.9%

Increase in gross margin due to the following factors:

(1) Gross Margin, defined as

revenues less cost of sales, is

$ 10.1

Montana electric transmission revenue

a non-GAAP Measure. See

Appendix slide 36 for a

8.4

Electric retail volumes

reconciliation and additional

disclosure.

(2.1)

Montana electric supply cost recovery

(1.3) Electric QF liability adjustment

(0.6)

Natural gas retail volumes

0.4 Other

$ 14.9 Change in Gross Margin Impacting Net Income

$ (1.3) Property taxes recovered in revenue, offset in property tax expense

  1. Gas production taxes recovered in revenue, offset in property and other taxes
  2. Operating expense recovered in revenue, offset in operating expense

0.6 Production tax credits reducing revenue, offset in income tax expense $ (0.2) Change in Gross Margin Offset Within Net Income

$ 14.7 Increase in Gross Margin

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NorthWestern Corporation published this content on 25 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2021 00:43:01 UTC.