Q2 2020 Otter Tail Corp Earnings Call
Last night, we announced our second quarter 2020 earnings results.
<unk> earnings release and slides accompanying this call are available on our website at otter tail Dot com.
A recording of the call will be available on our website later today.
With me on the call today are Chuck Macfarlane Otter tail corporations, President and CEO.
Kevin bulk Otter tail Corporation, senior Vice President and Chief Financial Officer.
Before we begin I want to remind you that we will be making forward looking statements. During this call.
Noted on slide two these statements represent our current judgment or opinion of what the future holds.
Our subject to risks and uncertainties that may cause actual results could differ materially.
So please be advised about placing undue reliance on any of these days.
Our forward looking statements are described in more detail in our filings with the Securities and Exchange Commission, which we encourage you to review.
Our child Corporation disclaims any duty to update or revise our forward to forward looking statements due to new information future events developments or otherwise.
For opening remarks, I will now turn the call over to Otter tail corporations, President and CEO Mr. Chuck Macfarlane.
Thank you aren't good morning, everyone welcome to our second quarter 2020 earnings call.
Otter tail Corporation continues to support all the locations reserve.
Elective efforts to mitigate the spread of covert 19.
Business continuity plan put the health and safety.
<unk> is in our communities at the forefront and are designed to help ensure continued electric reliability and operational excellence once across our company.
[music] currently 15% around employers are working remotely.
We have had 24 confirmed cases of covert 19 across the corporation.
We're told me to remain active.
[music], we remain diligent in our precautionary health and safety efforts, we continue to monitor this dynamic the bad and how it is impacting the economy and our electric in manufacturing platform.
Primarily driven by increased earnings in our electric segment.
Kevin will provide a more detailed discussion of our financial performance in his comments.
On a brief overview of the Q2 results are as follows.
The electric segment earnings per share increased 14 cents, primarily due to increasing investments and our airport wind energy Center and a story of station.
Along with lower own admin expenses.
The decrease in on M. expense was driven in part by lower quarter over quarter plant maintenance expense related to a planned outage at Coyote station in 2019.
[music], our manufacturing segment earnings per share decreased nine cents as their end markets were significantly impacted like overnight.
Primarily due to slightly lower sales volumes and lower pipe prices.
And our corporate crop cost decreased by a penny primarily due to gains our investments related to corporate owned life insurance and investments held at our captive insurance company.
This improvement is associated with improved equity markets in the second quarter.
Based on our year to date performance and our updated view of the potential impacts on our businesses go over night team, we're raising our 20 twice diluted earnings per share guidance to be in the range of $2.10 to $2.30.
Well I previously.
[music] announced guidance of $2 to $2.25 per share.
Key impacts to the utility in food lower commercial and industrial sales.
Particularly in oil pumping and ethanol production.
Lower commercial and industrial sales have been partially offset by increased residential usage.
We have provision for anticipated increasing bad debt expense and waived late fees.
Additionally, any significant delay in major utility capital projects due to supply chain or worker health issues would reduce rider revenues.
We have undertaken significant on m. reductions and filed for deferred accounting for coal with 19 related impacts.
We continue to see significant volume reductions in our manufacturing segment, primarily driven by declining sales volumes at BTD.
BTD has implemented rotating furloughs and reduced approximately 180 positions or 16% of the total workforce across all sites as they continue to reduce on I'm expenses. The helped mitigate the volume girl.
[music] or plastic segment experienced reduced sales volumes and lower sales prices as distributors reduced inventory.
Levels early in the quarter due to uncertainty over covert 19 impacts on sales and expectations of lower pipe prices.
However, based on our strong first half results.
Current market conditions, we now anticipate higher sales volumes and the potential for improved sales prices for the remainder be here.
And updated view of the second quarter and annual revenue impact like customer class are listed on slide 12.
The current view of estimated overall utility sales impact for 2020 related Coburn 19, because now a negative four to six cents per share.
Those impacts are included in our revised Guy.
Otter tail power along with many other utilities have suspended disconnects for late payments and wave late payment fees for residential.
Small business customers during his pandemic.
And as expected we will have a negative two cents EPS impact related to increased bad debt expense.
We're also expecting disconnect processes could be reinstated in north and South Dakota by mid August.
We currently do not have any active rate cases.
We expect to file or next Minnesota rate case in November 2020, but the covert 19th pandemic may require special considerations as we see its impact on our customers sales.
[music] Otter tail power continues to grow through capital investment in generation and transmission project.
As long as shown on slide 13.
Right based as expected to grow by an annual rate of 68.6% between 2019 and 2024 in a constructive regulatory environment.
On slide 16 construction continues on the Mayor Court wind Energy Center.
Our just capital project in Otter tail powers history.
The project is scheduled for completion before year end 2020.
Well there are risks associated with supply chain and construction labor due to cope with 19.
Project foundations are complete and recent activity includes ongoing delivery of turban components to the site.
Approximately 80% of major components are in North Dakota.
And 14 basis I've been set and the first turban was fully erected on July 23rd.
On slide 17, a story of station construction remains on time and on budget.
Despite covert 19 construction labor risk, we expect will be it will be online by year end 2020.
The power distribution equipment was energized in July and the natural gas yard is complete.
Work continues on our South Dakota transmission project, a 43 mile hundred 15 kv transmission line from Lake Norton through a story of South Dakota.
We expect to energize the line in June of 2021.
In mid June Otter tail power submitted a response to the Minnesota Public Utilities Commission request for investment can potentially help the state Enrico over 19 economic recovery.
As shown on slide 18, the company submitted 12 projects with a total cost estimated to be in the range of 153 to 173 million.
Construction or completion dates that could occur in the near term if we obtain authorization.
These projects.
Opposed to include.
Hey, renewable generation system.
Infrastructure and reliability improvements.
Outage management system accelerated vegetation management, and electric vehicle infrastructure and rate pilot among others.
Generally this would be an advancement of projects that were previously at some stage of consideration.
Slide 19 outlines an opportunity to grow rate base, an increase earnings so fun.
The election by the MISO transmission owner in this case otter tail power.
To fund the initial network upgrades associated with new generator interconnection.
And recover the investment.
From the interconnection customer through a monthly payment over 20 years.
The company has secured 27 of 33% facility service agreements and approximately 75% of the construction has been completed to date.
He risks.
Factors continue to be weather.
And potential covert 19 impacts.
We continue to monitor the progress on the federal regional Haze rule compliance planning process in North Dakota.
North Dakota Department of environmental quality the Q.
And the state in North Dakota have many milestones to reach before the stayed submits its implementation plan that to the environmental Protection Agency.
Coyote station owners continue to analyze the data and the decisions that will impact the plant and our employees customers and communities.
Well no more in early 2021, when the DQ begins the public comment period regarding its recommendation on a coyote station compliance strategy.
The BQ is scheduled to submit the North Dakota State implementation plan to the EPA in July 2021.
Each of the owners is uniquely positioned to serve and stakeholders the day in and the future. Our shared priorities are to continue serving customers reliable low cost electricity.
Turning to our plastic segment you may have seen in the news recently the bridge Railroad bridge collapse in Tempe, Arizona.
We're not anticipating any impacts the vinyltech production schedule, even with potential PVC resin rerouting delays.
The plastic segment continues to benefit from a strong housing market as evidenced by.
New home sales, increasing nearly 14% in June.
Looking ahead, we continue to enhance our balanced electric generation mix.
We anticipate by 2022 otter tail power customers will receive 30% of their energy from renewable resources.
And our carbon emissions will be at least 30% below 2005 levels.
All while keeping average residential rates nearly 30% below the national average.
We are growing investor concern about companies generating more than 25% of revenues from thermal coal.
So srega note that otter tail corporations percentage of revenue from coal assets as well below that threshold.
Percentage of consolidated revenues from our coal assets was 13.7% in 2019 as projected decline by 11% by 22, 11% by 2022.
We continue to execute on our strategic objectives to grow our businesses achieve operational and commercial excellence and develop our talent.
And we maintain our long term target of 5% to 7% annual EPS growth of 2019 base.
Now I'll turn it over to Kevin for the financial perspective.
Well, thanks, Chuck and good morning, everyone.
We're extremely pleased with our second quarter results in light of the challenging business an economic climate.
Earnings per share increased 7.7% over the second quarter last year, driven by strong performance in our electric business.
Well, that's refer to slide 25, as I discussed the quarter [noise].
Electric segment net earnings increased $5.8 million.
This increase was driven by increased Minnesota, and North Dakota renewable resource rider revenues related to the Mayor Court Wind Energy Center project and from the generation cost recovery writer in North Dakota in conjunction with the construction of the a story of station.
Net earnings were also favorably impacted by Additionally, a few D. C. On the a story of station project related to the Minnesota share of construction work in progress.
Whether favourably impacted earnings by two cents a share compared to the second quarter 2019.
We did have an increase in residential revenues during the quarter.
But this was more than offset by a decrease in kilowatt hour sales to commercial and industrial customers.
Primarily due to cold it 19 related impacts.
Other items favorably impacting electric segment earnings during the quarter were decreased on M. expenses due to lower maintenance expenses, both at Coyote and Hoot Lake plant.
That we incurred in Q2 2019.
Lower labor and employee benefit expenses and decrease transmission tariff expenses.
Offsetting these decreases the onetime expenses were higher depreciation associated with rate base additions in 2019.
Interest costs related to higher long term debt levels associated with financing or rate base growth.
Net earnings for the manufacturing segment decreased $3.7 million quarter over quarter.
Largely driven by the impacts of Cobot 19.
Key items impacting this segment's net earnings during the quarter were.
At BTD revenues were down mainly.
Due to a decline in parts sales as customers across our end markets implemented temporary shutdowns due to covert 19.
These plant shutdowns also resulted in lost labor productivity.
An increase costs related to personal protective equipment and payment of health care costs for furloughed employees.
Revenues were also down due to lower material cost passed onto a customer.
Scrap revenues were also down due to a 5% decrease in scrap metal prices and a 47% decrease in scrap sales volumes.
Lower cost of goods sold none of employee termination costs during the quarter.
Were down due to lower sales volumes of materials costs passed onto the customers.
And our decreased gross profits.
Were partially offset by lower SGN expenses.
And then T O plastics revenues and earnings decreased due to lower sales across all of this product lines, driven largely by market softness related to cope and 19.
Our plastics segment earnings decreased due to lower pounds of pipe sold.
Combined with the decrease in pipe sales prices that were partially offset with lower resin prices.
The lower sales volumes were attributable to reduced sales to distributors lowered their inventory levels in anticipation of cobot 19 related impacts on sales and concerns over lower PVC pipe prices stemming from the declining resin prices.
And our corporate costs net of tax were slightly improved quarter over quarter.
We continue to generate strong cash flow from operations and have the appropriate levels of liquidity under our credit facilities to support our business operations.
As of July 31, 2020, the total amount available under both our credit facilities was $286 million.
During the quarter, we raised approximately $19 million an equity under our at the market dividend reinvestment and employee stock purchase programs.
Since the fourth quarter of 2019, we have raised $47 million or approximately 63% of our equity needs.
We expect to issue up to an additional 28 million of equity barring any further erosion of the equity capital markets related to the cobot 19 pandemic or other factors.
Slide 32 shows an updated version of our 2020 to 2024 capital expenditure plan.
Primarily shifting the timing of expenditures with no material impact on the 1 billion dollar five year capital plan.
We now expect capital expenditures for 2020 to be 380 million.
Which 96% is earmarked for electric segment.
Plant expenditures for this year include $177 million from air cord and $81 million first storia.
The five year plan calls for approximately $898 million and utility projects of which approximately 50% will be covered through riders.
This estimate includes 70% of the capital projects associated with the Minnesota relief and recovery proposal requested by the Minnesota Public Utility Commission.
The plan also includes 84 million for the manufacturing and plastic segments.
[noise], let's move to our business outlook on slide 33.
And review our updated 2020 annual earnings guidance.
We're raising our 2020 overall diluted earnings per share guidance range to $2.10 to $2.30.
Based on our first half financial results.
And and updated view of the anticipated affects of cobot 19 on our operating companies.
This improvement.
Just driven by strong first half performance in our plastics segment.
Along with continued favorable business conditions in this segment for the rest of the year.
Also the impact of covert 19, our electric segment has been less than originally expected.
And our 2020 diluted earnings per share guidance also includes four cents of dilution associated with the planned issuance of common equity to help fund the projects at our till.
Power company.
Our current assumptions for updated for our updated business all book assume our electric and plastic segments are in a gradual recovery as reflected in our updated guidance ranges.
We are seeing a much slower recovery in our manufacturing segment.
Tds customers reduced production levels in the second quarter in response to covert 19.
Caused a sharp decline in orders and revenues.
We're now planning for our manufacturing segment plants to run at higher levels of capacity in the third and fourth quarters as customer forecasts are industry, indicating.
Increased demand as production plants are being brought back online.
We continue to believe our assumptions are reasonable based on current business and economic conditions.
And we recognize these assumptions could prove to be incorrect given the recent increase in cobot 19 cases.
Which could result in a further slowing of the broader economic recovery.
In the following items contribute to our revised earnings guidance for 2020.
Our 2020 guidance for.
Our electric segment includes capital spending on the Mirror Court Storia station rate based projects in 2020.
Americorp project has rider recovery mechanisms in all three state jurisdictions. The story of station project has rider recovery mechanisms in North and South Dakota.
And this project earns a if you do you see in Minnesota.
And is expected to be recovered through a rate case in Minnesota and has already been approved in our integrated resource plan.
Increased revenues related to 25 million anticipated capital spending.
For self funded generator interconnection agreements.
There are no planned generation plant outages scheduled for 2020.
We incurred plant outage costs of $3.1 million in 2019.
Additional items expected to positively impact or 2020 electric earnings.
Include the recent decision by the Minnesota Supreme Court ruling in Otter tail power companies favor related to maintaining the incremental return.
Earned on FERC jurisdiction transmission lines.
The estimated impact of this decision is an increase to 2020 earnings of five cents a share.
And going forward the positive impact of this decision on an annual basis as a penny a share.
We are updating.
Our Minnesota transmission cost recovery writer filing with new rates.
Incorporating the results of the decision in order to update the original.
Minnesota Public utility utility Commission order.
We've also implemented three cents a share of cost reduction efforts to mitigate the impact of cobot 19.
The above items are offset by the impact of unfavorable weather during the first half of 2020.
And normal weather being anticipated for the remaining months of the year.
Whether favourably impacted 2019 earnings by eight cents a share compared to normal.
We have increased expenses caused in large part by a decrease in the discount rate used for the pension plan.
And a lower rate use for our long term rate of return assumptions.
Higher depreciation and property tax expense due to large capital projects being put into service.
Increased interest costs related to the issuance of the $175 million of debt financing that was completed in 2000 October of 2019.
Yeah and reductions in commercial and industrial demand related to the negative impacts cobot 19.
As some customers and our jurisdictions have had to either completely shut down or curtail operations given reduced demands for their products and services.
We also expect to incur increased costs of bad debts personal protective equipment and the loss of late fee revenue.
The total estimated impact of these items range from six to eight cents a share compared with our original estimate of eight to 12 cents a share.
With.
Income from our manufacturing segment will be lower in 19, driven by the impact of the cobot 19 pandemic.
We now estimate a reduction in manufacturing segment earnings a 14 cents a share.
From the midpoint of our original guidance to the midpoint of our updated guidance. This is due to the effects of in response to the cold at 19 pandemic.
Backlog for the manufacturing excess segment.
Approximately 96 million for 2020, compared with $115 million a year ago.
Rob material price deflation is driving backlog down by 10 million and the remaining 9 million decrease in backlog is volume driven.
We are raising our 2020 guidance range for our plastics segment and now expect earnings to be in line with 2019.
Sales volumes in 2020 are now expected to be approximately 2% higher than 2019, given the strong first half results and current market conditions.
Raw material prices did decrease in the second quarter, but are now expected to trend up.
In the third quarter.
This increase is related to supplier plants being busy tightening up demand and the resin export market strengthening.
Our change in the guidance range for corporate costs net of tax is primarily due to the decline in values of art on our investments held in corporate owned life insurance.
And our captive insurance company related to covert 19, and its related impacts on the stock market.
While we have implemented mitigation efforts to lower our corporate labor and non labor costs. We don't expect we will fully recover the drop and value of these investments before the end of year.
We are pleased by our strong second quarter results, given the challenging business and economic conditions, we face.
Our electric and plastic segments are proving to be quite resilient and our manufacturing segment is managing the business well despite the large drop in revenues.
Longer term, we remain focused on executing our strategic initiatives to grow our business and achieve operational and commercial excellence.
Otter tail power company plans to grow its rate base and very supportive.
Regulatory environments at an 8.6% compounded annual growth rate over the next five years.
This is driven by investments in renewable and natural gas generation technology and infrastructure and transmission projects.
Overall, we expect the electric utility will provide approximately 75% of our earnings.
And the manufacturing and plastic segments will also continue to provide organic growth over the long term.
These two segments are expected to provide around 25% of our overall earnings over time.
We expect to be able to deliver total shareholder return of 8% to 10% over the long term.
This consists of two components first earnings per share.
Expected to increase at a 5% to 7% growth rate.
Secondly, our current dividend yield is approximately 3.9%.
Looking forward, we would expect to grow the dividend along with our earnings per share growth of 5% to 7%.
While maintaining a dividend payout ratio between 60% to 70%.
And our company is on solid footings with a strong balance sheet ample liquidity to support our business and investment grade corporate credit ratings.
We're now ready to take your questions.
Ladies and gentlemen, if your question. Please press Star then one on your Touchtone telephone. If your question has been answered your question what yourself from the Q. Please press the pound key after the Q NHL return with a few closing remarks.
Our first question comes from cross selling costs was favorite Williams.
Hey, guys how are you.
Good morning address.
Can you give us a little bit of color on which seen in the recreational vehicle market.
Sure I mean, we've.
You know from Polaris is perspective, there has been strengthening in that market they've seen a fair amount of increased demand as consumers look to do more social distancing activities outside.
I know that their their inventories at the end of their second quarter or or low they're looking to start to rebuild their inventories were starting to see.
Increased levels of forecast coming from them here in the third and fourth quarters.
I think in general they have given consumers efforts to be outside and do activities. The RV market has certainly benefited from that and you've seen that another.
RV markets as well, while we don't do anything with.
Boats, I know that there's been an uptick in that market as well and campers and those things.
Okay. Thanks.
Improved outlook.
Yes.
Principally how housing and construction is that that your thought process there.
Yes.
We saw I mean in the second quarter.
Sure.
As we build our forecast.
For plastics, we certainly expected to see.
A drop off in volumes of pipe sold Chris and as we went through the second quarter, while volumes were less than last year during the quarter. They ended up being much stronger than.
What we had forecast it and so that certainly a strong second quarter compared to our forecast and then these current conditions as we head into the third quarter that we're seeing.
The housing markets are certainly were favorable in June.
And as we look at our.
The demand we're seeing from customers for.
For product, we feel good about the last half of the year.
Do you.
Do you think that sales were better than you thought because states continue to allow construction to take place during the locked down.
Yeah, I think Thats, certainly a key part of it absolutely I.
Because those projects are outside it was.
Able to keep those running.
With social distancing.
Effort certainly in place, but just the fact that there are outside certainly helped.
The plastics business was certainly it's helped our utility with our mirror Court. The story is station projects as well.
Okay great.
The Minnesota program the economic stimulus.
[music].
Let me give us a little more color on that what is the process.
And for your proposal and is there a open docket at this point.
Hi, Chris This is Chuck.
There is an open docket, we have submitted the projects I mentioned they can.
The docket theirs.
Our listed those 12, and there's been one informational hearing and we need all the utilities in Minnesota are involved in their own.
Submission.
Of items and their intent is to.
Look at those and we have to provide a filing over the next 90 days.
And whats in it.
If you look at the 153 to 173.
Million.
70% of those.
All ours would be in.
Our existing forecast.
So there would be approximately 30% new dollars are brought in from outside the five year period.
They tend to be renewable generation.
Advance technology, which in the majority of that you're looking at slide 18 tends to be and am I am I project.
Reliability and infrastructure outage management load management systems as well as some grid hardening and then.
Electric vehicle, some conservation and building upgrades.
Associated with.
Energy efficiency.
Round, though so.
Our intent is to know at least on some of these projects you're in the third quarter.
And what timeframe that they want to see these projects completed in.
Well there, they're just indicating what can you start now they know they won't.
Be an immediate ramp up necessarily in 2020, but I think they're looking at a 2020 2021.
What projects can you advance to increase labor and.
Job activity in the next 18 months.
Sure.
Chuck you quoted us.
An impact you're expecting on lower electricity sales.
Based on what I've been saying for the second quarter sounds like the vast majority or maybe half or more.
That impact is the second quarter.
Reflects 30 year view for gradual improvement for the rest of the year.
And so we should be thinking that the impact is less.
Sequentially in the next two quarters.
Does that also not.
Your thinking that the fourth quarter is kind of getting close to normal.
I think that I would summarize it very similar to what you just did it.
It's improving each quarter and.
Particularly we envision our industrial.
Oh.
Load will be back to normal that's the one that currently is is the most often it is heavily weighted toward.
Towards oil pumping and ethanol and we believed by the end of the year they'll be back to near forecast levels.
In the fourth quarter.
That.
Also that you're assuming residential goes back to normal are there remains a significant component of work at home for a lot of people still.
We view that there will be more.
Worked at home it will not be a significant as it was in the second or third quarter I think we're seeing a little uptick in the third quarter, just because of the worked at home.
We're experiencing probably more air conditioning load than we would have historically.
In those years, even even with normal weather.
And your.
Your normal weather assumption for the rest of the year.
Also incorporate sort of what looks to be a good July so far.
[noise] on no.
No we are set the forecast.
Before the July results would have been though.
Thanks, guys.
Thanks, Chris.
Our next question comes from Sophie Karp with Keybanc.
Hi, good morning.
On the quarter.
Thanks, I feel good.
Maybe if you could give us a little color on how would you be margins in plastic developing over the second half a given what I'm sure.
Things on that.
Commodity pricing then.
<unk>.
There would be helpful. If you could give us a little column.
Yes, Sophie this Kevin I mean, the last half were.
As we look at the business we are expecting.
In terms of the whole last six months.
Volumes for the last six months compared to the last six months.
The year ago are slightly down, but we are seeing a.
A slight uptick in our sales prices over the last six months and.
We're seeing stronger margins.
In general over the last six months as well.
We do there is as I mentioned in my comments.
Now resin prices are trending back up.
For the.
In July here, and so we expect that there will be some benefit.
In the sales prices.
Will help margin as well as we go through the rest here.
We're seeing a stronger uplift in our.
Q3.
Margins typically we had a real strong sports quarter last year, and we expect that that will be we do anticipate that.
Particularly at northern pipe, we're gonna have weather related.
Kind of challenges given the country part of the country, we're in and so we do expect so.
Little bit of a falloff in margins in the fourth quarter, but those are.
Offset by the stronger margins in the third quarter, we're expecting.
Got it and so.
We shouldn't expect that there would be any additional boot from maybe lower price.
Materials.
Hi, good to.
Good to see.
I'm, sorry did you say lower price raw materials.
Yeah, I would just wondering if you're maybe build inventory at lower levels and you'd be working so that's raw materials, great adamant that there will some of that Sophie we had under our.
Resin contracts, we have what's what we referred to as 30 day price protection.
So if resin prices are going up in July we don't see that come through our pricing until August. So there will be some buildup of inventory at the lower prices that would be helping the third quarter as well.
Got it got I think there and then a Minnesota just wanted to make sure I understand so the incremental 30%.
So 30% of the said the project, but incremental to your existing capital plan.
Is that going to pull largely in the existing driver that's the hub there or would you need to separate.
Keith recovery on that.
Sure I heard that right.
It depends Sofia this Chuck on the each individual project I would think that the the technology.
Items may in Minnesota fall under a distribution rider, but if I if I had do yes.
These projects they have not been approved by Minnesota.
And incremental amounts the majority would require a rate case recovery not rider recovery in the future.
Got it.
It's a much I'll jump back into the Q.
Hi, good ladies and gentlemen couple of question or a common at this time. Please press the star them a one key on your Touchtone telephone.
And I'm not showing any further questions Tom will I turn the call back over to Chuck.
Thank you for your questions on interest in Otter tail Corporation, well, many challenges and uncertainties related to covert 19 remain we are encouraged by the ongoing efforts our employees across the organization are taking to help mitigate its impact as evidenced by our Q.
Two results.
And despite the short term challenges, we remain focused on executing our growth strategies.
That are designed to create long term shareholder value.
For the utility our strategy is to continue to invest in rate base growth opportunities.
Utility is complemented by well run strategic manufacturing and plastic pipe businesses, which provide organic growth from new products and services market expansion and increased efficiency.
Based on our first half performance and our updated view a potential impacts from coven 19, we're increasing our 2020 diluted earnings per share guidance to be in the range of $2.10 to $2.30 from our previous guidance of $2 to $2.25.
Thank you for joining our call. We appreciate your interest in Otter tail Corporation, and we look forward to speaking with you next quarter.
Ladies and gentlemen, just conclude todays presentation you may now disconnect and have a wonderful day.