Otter Tail Corporation (NASDAQ:OTTR) Q4 2019 Earnings Conference Call - Final Transcript

Feb 18, 2020 • 11:00 am ET

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Otter Tail Corporation (NASDAQ:OTTR) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] After the Q&A, Chuck will return for a few closing remarks. Our first question comes from Tate Sullivan with Maxim Group.

Analyst
Tate Sullivan

Hi, thank you. Good morning. Slide 19 on the self-fund transmission projects, are the -- can you just walk through what is included in your current capex guidance just the ones that have received FERC approval, is that the case?

Executive
Charles S. MacFarlane

Good morning, Tate. This is Chuck. The ones that are included are all the ones that we anticipate to interconnect in '20 and '21. They include both ones that have approved FERC interconnection and anticipated ones. One other thing is there each project may have more than one FERC FSA that goes with it. So we are anticipating that these are largely the projects that will be put in service before the end of the ramp down of the PTC for wind.

Analyst
Tate Sullivan

Okay, thank you. And then Kevin on capex on the -- also on the capex guidance, slight changes from your previous guidance. I mean can you just comp, was it timing related to, I think you previously guided spending $233 million this year, you spent $207 million and then you increased by a lesser amount for the out years. But can you just give us some context to what changed, please?

Executive
Kevin G. Moug

Yeah. I mean, Tate, thanks. I mean it's -- a fair amount of it's just timing in terms of the one that expenditures are coming through. So, one we originally expected is what's driving that kind of change. And then maybe just to further clarify your first question, we have what's actually included in the self-fund is the $45 million in our capital plan that we show on Slide 14 and on Slide 19.

Analyst
Tate Sullivan

Okay. Thank you for that. I'll get back in line.

Operator
Operator

Our next question comes from Chris Ellinghaus from The Williams. [Phonetic]

Analyst
Christopher R. Ellinghaus

Hey guys. How are you today?

Executive
Charles S. MacFarlane

Good, Chris.

Executive
Kevin G. Moug

Good, Chris.

Analyst
Christopher R. Ellinghaus

Can you just elaborate a little bit about your outlook for BTD and specifically sort of what you're thinking about the ATV [Phonetic] market and how that might influence Georgia's performance also?

Executive
Kevin G. Moug

Yeah, Chris, this is Kevin. As we head into '20 and what we're seeing from our customers in that recreational vehicle market, we're starting to see some softening in terms of the -- some of the demands that are coming from them. And so our 2020 guidance for manufacturing of which BTD is included is reflecting what we expect to see that decline in volumes to be coming from the RV end market or specifically the customers within that end market.

Analyst
Christopher R. Ellinghaus

Okay. So can we infer from the -- with the midpoint of the Manufacturing guidance seems to be kind of in the flat range, should we be generally expecting a little weaker TD [Phonetic] offset by your expectations [Technical Issues]?

Executive
Kevin G. Moug

In terms of [Indecipherable] but in terms of the guidance range of that $31 million to $35 million and that midponit, BTD's part of that is slightly