NEWS RELEASE
THE LACLEDE GROUP
720 Olive Street, St. Louis, MO 63101
CONTACT: George Csolak
(314) 342-0652
FOR IMMEDIATE RELEASE
The Laclede Group Achieves Record Earnings for Fifth Consecutive Year
ST. LOUIS, MO, October 26, 2007 - The Laclede Group, Inc., (NYSE:LG) reported its fifth consecutive year of record earnings today. For fiscal year 2007, which ended September 30, consolidated earnings were $49.8 million, compared with $49.0 million in fiscal 2006. Diluted earnings per share were $2.31 for the year, compared with diluted earnings of $2.30 per share for fiscal 2006.
Results reported by Laclede Group’s regulated subsidiary, Laclede Gas Company, which celebrated its 150th year of business during this fiscal year, improved $3.6 million compared to fiscal 2006. The improvement was primarily due to the effect of higher utility sales volumes attributable to colder weather, a general rate increase effective August 1, 2007 and additional Infrastructure System Replacement Surcharge revenues. These factors were partially offset by higher operating and depreciation expenses. Laclede Gas is Missouri’s largest natural gas distribution utility.
Net income for SM&P Utility Resources, Inc., Laclede Group’s non-regulated underground facility locating and marking service business, increased $.9 million compared to last year. The increase was primarily due to the effect of a non-recurring charge related to settlement costs associated with employment-related litigation recorded last year and the addition of new business in existing markets this year, which were partially offset by higher operating expenses this year.
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Laclede Energy Resources, Inc. (LER), Laclede Group’s non-regulated natural gas commodity service provider, posted earnings totaling $13.3 million for fiscal 2007 compared to $17.1 million in fiscal 2006. While LER achieved increased sales volumes this year over last, margins this year were reduced as pricing volatility in Gulf Coast markets stabilized.
For further details concerning The Laclede Group’s fiscal 2007 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-Q for the quarter ended June 30, 2007, 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 September 30, | Twelve Months Ended September 30, | ||||||||
2007 | 2006 | 2007 | 2006 | ||||||
OPERATING REVENUES | |||||||||
Regulated | |||||||||
Gas distribution | $ 103,777 | $ 91,637 | $ 1,131,554 | $ 1,141,011 | |||||
Non-Regulated | |||||||||
Services | 47,463 | 46,089 | 165,733 | 162,523 | |||||
Gas marketing | 170,616 | 130,135 | 718,704 | 689,572 | |||||
Other | 1,416 | 1,133 | 5,603 | 4,445 | |||||
Total operating revenues | 323,272 | 268,994 | 2,021,594 | 1,997,551 | |||||
OPERATING EXPENSES | |||||||||
Regulated | |||||||||
Natural and propane gas | 51,335 | 47,989 | 797,924 | 821,721 | |||||
Other operation expenses | 32,019 | 26,282 | 131,798 | 128,180 | |||||
Maintenance | 6,818 | 5,463 | 24,306 | 21,198 | |||||
Depreciation and amortization | 8,450 | 8,368 | 34,080 | 30,904 | |||||
Taxes, other than income taxes | 7,894 | 8,127 | 68,361 | 71,038 | |||||
Total regulated operating expenses | 106,516 | 96,229 | 1,056,469 | 1,073,041 | |||||
Non-Regulated | |||||||||
Services | 41,738 | 41,070 | 156,658 | 155,133 | |||||
Gas marketing | 167,465 | 126,446 | 698,962 | 662,391 | |||||
Other | 761 | 603 | 4,239 | 3,711 | |||||
Total operating expenses | 316,480 | 264,348 | 1,916,328 | 1,894,276 | |||||
Operating Income | 6,792 | 4,646 | 105,266 | 103,275 | |||||
Other Income and (Income Deductions) – Net | 1,409 | 1,659 | 6,812 | 5,508 | |||||
Interest Charges: | |||||||||
Interest on long-term debt | 5,625 | 5,626 | 22,502 | 22,329 | |||||
Interest on long-term debt to unconsolidated affiliate trust | 893 | 893 | 3,573 | 3,573 | |||||
Other interest charges | 2,955 | 2,524 | 11,154 | 10,277 | |||||
Total interest charges | 9,473 | 9,043 | 37,229 | 36,179 | |||||
Income (Loss) Before Income Taxes and Dividends on Redeemable Preferred Stock – Laclede Gas | (1,272) | (2,738) | 74,849 | 72,604 | |||||
Income Tax Expense (Benefit) | (1,885) | (1,913) | 25,035 | 23,567 | |||||
Dividends on Redeemable Preferred Stock – Laclede Gas | 10 | 11 | 43 | 48 | |||||
Net Income (Loss) | $ 603 | $ (836) | $ 49,771 | $ 48,989 | |||||
Average Number of Common Shares Outstanding | 21,514 | 21,298 | 21,455 | 21,247 | |||||
Basic Earnings (Loss) Per Share of Common Stock | $ 0.03 | $ (0.04) | $ 2.32 | $ 2.31 | |||||
Diluted Earnings (Loss) Per Share of Common Stock | $ 0.03 | $ (0.04) | $ 2.31 | $ 2.30 |