THE LACLEDE GROUP
720 Olive Street, St. Louis, MO 63101
FOR IMMEDIATE RELEASE
The Laclede Group Reports
First Quarter 2007 Earnings
ST. LOUIS, January 25, 2007 — The Laclede Group (NYSE: LG) today released earnings results for the first quarter of its fiscal year 2007.
Consolidated earnings for the quarter ended December 31, 2006 were $19.1 million compared to $26.2 million for the same period last year. The decrease in Laclede Group’s earnings is largely attributable to lower margins on sales of natural gas made in Gulf Coast markets, as market volatility in that region stabilized from the unprecedented levels experienced a year ago. Earnings per share were $.89 for the first quarter this year compared to $1.23 for the quarter ended December 31, 2005.
Earnings reported by Laclede Gas Company, Missouri’s largest natural gas distribution utility, were $15.7 million, down $4.5 million compared to last year. The Utility’s earnings declined primarily as a result of lower margins on sales of natural gas to entities outside of its traditional service area, as well as higher operating and depreciation expenses.
Laclede Energy Resources (LER), Laclede Group’s non-regulated natural gas commodity services provider, posted earnings that were $1.6 million lower compared to
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the same period last year. Despite higher wholesale sales volumes during the quarter this year, LER’s earnings were down due to lower margins as mentioned previously.
The results of SM&P Utility Resources, Laclede Group’s non-regulated underground facility locating and marking business, declined $.9 million compared with the same period last year. While revenues were higher, the earnings decline resulted from higher operating expenses, primarily due to growth and expansion.
For further details concerning The Laclede Group’s fiscal 2007 first quarter results, see the accompanying unaudited Statements of Consolidated Income.
Note: This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company's future operating results may be affected by various uncertainties and risk factors, many of which are beyond the Company's control, including weather conditions, governmental and regulatory policy and action, the competitive environment and economic factors. For a more complete description of these uncertainties and risk factors, see the Company's Form 10-K for the year ended September 30, 2006, filed with the Securities and Exchange Commission.
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UNAUDITED
STATEMENTS OF CONSOLIDATED INCOME
THE LACLEDE GROUP, INC.
(Thousands, Except Per Share Amounts)
| | | Three Months Ended December 31, | |
| | 2006 | | 2005 | |
| | | | | |
OPERATING REVENUES | | | | | |
| Regulated | | | | | |
| Gas distribution | | $ 348,488 | | $ 411,401 | |
| Non-Regulated | | | | | |
| Services | | 36,429 | | 35,458 | |
| Gas marketing | | 153,467 | | 241,332 | |
| Other | | 1,177 | | 1,044 | |
| Total operating revenues | | 539,561 | | 689,235 | |
| | | | | | |
OPERATING EXPENSES | | | | | |
| Regulated | | | | | |
| Natural and propane gas | | 251,523 | | 312,039 | |
| Other operation expenses | | 33,680 | | 33,105 | |
| Maintenance | | 5,598 | | 4,988 | |
| Depreciation and amortization | | 8,497 | | 6,083 | |
| Taxes, other than income taxes | | 18,759 | | 19,639 | |
| Total regulated operating expenses | | 318,057 | | 375,854 | |
| Non-Regulated | | | | | |
| Services | | 36,361 | | 33,919 | |
| Gas marketing | | 147,668 | | 232,474 | |
| Other | | 1,077 | | 851 | |
| Total operating expenses | | 503,163 | | 643,098 | |
Operating Income | | 36,398 | | 46,137 | |
Other Income and (Income Deductions) – Net | | 3,303 | | 1,285 | |
| | | | | | |
Interest Charges: | | | | | |
| Interest on long-term debt | | 5,626 | | 5,643 | |
| Interest on long-term debt to unconsolidated affiliate trust | | 893 | | 893 | |
| Other interest charges | | 3,434 | | 2,123 | |
| Total interest charges | | 9,953 | | 8,659 | |
Income Before Income Taxes | | 29,748 | | 38,763 | |
Income Tax Expense | | 10,649 | | 12,583 | |
Net Income | | 19,099 | | 26,180 | |
Dividends on Redeemable Preferred Stock – Laclede Gas | | 12 | | 12 | |
Net Income Applicable to Common Stock | | $ 19,087 | | $ 26,168 | |
| | | | | |
Average Number of Common Shares Outstanding | | 21,381 | | 21,191 | |
Basic Earnings Per Share of Common Stock | | $ 0.89 | | $ 1.23 | |
Diluted Earnings Per Share of Common Stock | | $ 0.89 | | $ 1.23 | |
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