NEWS RELEASE
THE LACLEDE GROUP
720 Olive Street, St. Louis, MO 63101
CONTACT:Richard N. Hargraves
(314) 342-0652
FOR IMMEDIATE RELEASE
The Laclede Group Announces First Quarter Earnings
ST. LOUIS, Jan. 27, 2005 — The Laclede Group (NYSE: LG) today released its earnings report for the first quarter of its fiscal year 2005.
Net income for the quarter that ended December 31, 2004 was slightly ahead of the same period last year ($16.62 million this year compared to $16.59 million last year). However, earnings per share this year were lower, due primarily to the dilutive effect of the sale of 1.725 million shares of common stock in 2004. First quarter earnings for fiscal 2005 were 79 cents per share, compared to 87 cents per share for fiscal 2004.
The Laclede Group’s two principal unregulated subsidiaries each generated increased period-to-period earnings. Laclede Energy Resources, which offers natural gas commodity services to customers within and outside of the St. Louis area, contributed to earnings over $1 million more during the first quarter of fiscal 2005 than in the same period last year. SM&P Utility Resources, an underground facility locating and marking company, earned nearly $1.1 million more during this year’s first quarter than in the first quarter of fiscal 2004.
Earnings from The Laclede Group’s core subsidiary, Laclede Gas Company, Missouri’s largest natural gas distribution utility, were down approximately $2.2 million this year compared with the first quarter of fiscal 2004. Despite being tempered by the gas company’s weather mitigation rate design, the decrease was due in large part to reduced gas sales resulting from an unseasonably warm November weather pattern. Utility earnings were further reduced by lower income from off-system sales and higher operating expenses, partially offset by the recovery of eligible costs incurred to build and maintain our distribution system through the Infrastructure System Replacement Surcharge that became effective in June 2004.
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, 2004, 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, | ||||||||||||
| 2004 | 2003 | |||||||||||
| OPERATING REVENUES | ||||||||||||
| Regulated | ||||||||||||
| Gas distribution | $ | 291,253 | $ | 261,350 | ||||||||
| Non-Regulated | ||||||||||||
| Services | 27,986 | 19,548 | ||||||||||
| Gas marketing | 118,179 | 50,983 | ||||||||||
| Other | 5,067 | 756 | ||||||||||
| Total operating revenues | 442,485 | 332,637 | ||||||||||
| OPERATING EXPENSES | ||||||||||||
| Regulated | ||||||||||||
| Natural and propane gas | 206,424 | 175,275 | ||||||||||
| Other operation expenses | 30,925 | 29,483 | ||||||||||
| Maintenance | 4,214 | 4,429 | ||||||||||
| Depreciation and amortization | 5,305 | 5,658 | ||||||||||
| Taxes, other than income taxes | 15,823 | 14,832 | ||||||||||
| Total regulated operating expenses | 262,691 | 229,677 | ||||||||||
| Non-Regulated | ||||||||||||
| Services | 26,872 | 20,311 | ||||||||||
| Gas marketing | 115,786 | 50,288 | ||||||||||
| Other | 5,171 | 967 | ||||||||||
| Total operating expenses | 410,520 | 301,243 | ||||||||||
| Operating Income | 31,965 | 31,394 | ||||||||||
| Other Income and (Income Deductions) – Net | 1,574 | 1,459 | ||||||||||
| Interest Charges: | ||||||||||||
| Interest on long-term debt | 5,908 | 4,814 | ||||||||||
| Interest on long-term debt to | 893 | 893 | ||||||||||
| unconsolidated affiliate trust | ||||||||||||
| Other interest charges | 970 | 1,085 | ||||||||||
| Total interest charges | 7,771 | 6,792 | ||||||||||
| Income Before Income Taxes | 25,768 | 26,061 | ||||||||||
| Income Tax Expense | 9,136 | 9,454 | ||||||||||
| Net Income | 16,632 | 16,607 | ||||||||||
| Dividends on Redeemable Preferred Stock – Laclede Gas | 15 | 16 | ||||||||||
| Net Income Applicable to Common Stock | $ | 16,617 | $ | 16,591 | ||||||||
| Average Number of Common Shares Outstanding | 21,018 | 19,116 | ||||||||||
| Basic Earnings Per Share of Common Stock | $ | .79 | $ | .87 | ||||||||
| Diluted Earnings Per Share of Common Stock | $ | .79 | $ | .87 | ||||||||
Certain prior-period amounts have been reclassified to conform to current-year presentation.
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