Investor Presentaiton
L
COVID-19: Expense Impacts
18
Estimate of Covid Impacts
Second Quarter
Third Quarter
Fourth Quarter
Full Year 2020
(millions)
Low
High
Low
High
Low
High
Low
High
Gross Margin
($3.0)
($4.0)
($2.0)
($3.0)
($3.0)
($4.0)
($8.0)
($11.0)
Operating Expense
Medical
(0.9)
(0.9)
0.0
0.0
0.0
0.0
(0.9)
(0.9)
Labor
(0.7)
(0.7)
(0.4)
(0.4)
(0.7)
(0.7)
(1.8)
(1.8)
Travel & training
(1.2)
(1.2)
(0.8)
(0.8)
(0.8)
(0.8)
(2.8)
(2.8)
Uncollectible accounts
3.1
3.1
2.4
2.4
(2.4)
(2.4)
3.0
3.0
Total Operating Expense
0.3
0.3
1.2
2
1.2
(3.9)
(3.9)
(2.4)
(2.4)
Operating Loss
(3.3)
(4.3)
(3.2)
(4.2)
0.9
(0.1)
(5.6)
(8.6)
Interest expense
(0.7)
(0.7)
0.0
0.0
0.0
0.0
(0.7)
(0.7)
Pretax Loss
(4.0)
(5.0)
(3.2)
(4.2)
0.9
(0.1)
(6.3)
(9.3)
Income tax benefit
1.0
1.3
0.8
1.1
(0.2)
0.0
1.6
2.4
Net Loss
($3.0)
($3.7)
($2.4)
($3.1)
$0.7
($0.1)
($4.7)
($6.9)
ETR
25.3%
25.3%
25.3%
25.3%
25.3%
25.0%
25.3%
25.3%
Diluted Shares
50.6
50.6
50.7
50.7
51.7
51.7
Diluted EPS
($0.06)
($0.07)
($0.05)
($0.06)
$0.01
$0.00
50.7
($0.09)
50.7
($0.14)
Expenses that increased:
Bad debt expense
•
Expenses that decreased:
•
Regulatory recovery in SD only
.
Covid-19 related charitable contributions
·
•
Distribution customer work
Contract services and material costs
Fleet fuel costs
Travel and employee education
Lower medical expense & incentive pay
Areas unchanged but will monitor and manage appropriately in 2021
.
Capital spending at our expected level of approximately $400 million in 2020
•
Supply chain - No significant issues - nearly all vendors in USA
.
Staffing levels - No layoffs and we still hired for critical positions
Covid-19 related expense
reductions were generally in
line with our expectations.
However, without an approved
recovery mechanism in place
in Montana, increased
uncollectable accounts
expense and increased
interest expense from higher
liquidity needs more than
offset Covid related savings.View entire presentation