Spire (SR) 8-K The Laclede Group Announces Second Quarter Earnings and Declares Dividend

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
Second Quarter Earnings and Declares Dividend

ST. LOUIS, MO, April 28, 2005 — The Laclede Group (NYSE: LG) today released its earnings report for the second quarter of its fiscal year 2005 and declared a quarterly dividend of 341/2 cents per share on its common stock, payable July 1, 2005, to shareholders of record on June 10, 2005.

Net income for the quarter ended March 31, 2005, was $22.4 million this year, or $.9 million higher than the same period last year. However, on an earnings-per-share basis, second quarter earnings for fiscal 2005 were $1.07 per share, compared to $1.12 per share for the same period last year, due primarily to the dilutive effect of the sale of 1.725 million shares of common stock in 2004.

The increase in The Laclede Group’s net income resulted primarily from improved performance at its two principal unregulated subsidiaries. Laclede Energy Resources, which offers natural gas commodity services to customers within and outside of the St. Louis area, posted a $.8 million increase over the same period last year, and SM&P Utility Resources, an underground facility locating and marking company, improved its results by $1.1 million during this year’s second quarter compared to the second quarter of fiscal 2004.

Earnings from The Laclede Group’s core subsidiary, Laclede Gas Company, Missouri’s largest natural gas distribution utility, were down $.9 million this year compared to the second quarter of fiscal 2004. Utility earnings were reduced by higher operating expenses this year and the effect of a non-operating earnings benefit recorded last year related to its interest as a policyholder in the sale of a mutual insurance company. These decreases were partially offset by the impact of higher income from off-system sales and by the recovery of certain distribution costs through the Infrastructure System Replacement Surcharge.

Laclede Group’s net income for the six-month period ended March 31, 2005, was $39.1 million, or $.9 million more than the same period last year. However, earnings decreased on a per share basis to $1.86 per share, compared to $1.99 per share for the same period last year, due to dilution related to the aforementioned 2004 common stock issuance. The increase in net income is largely due to the same factors discussed above relative to the second quarter.

Due to the seasonal nature of The Laclede Group’s core natural gas utility’s business, earnings are typically concentrated in the November through April period, which generally corresponds with the heating season. The utility typically experiences losses during the non-heating season. This seasonal effect on The Laclede Group is expected to be tempered somewhat by earnings from its non-regulated subsidiaries, particularly SM&P, whose operations tend to be counter-seasonal to those of Laclede Gas.

In addition, Laclede Gas Company declared a quarterly dividend of 311/4 cents per share on Preferred Stock, Series B, and a quarterly dividend of 281/2 cents per share on Preferred Stock, Series C, payable June 30, 2005 to shareholders of record June 10, 2005.

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 December 31, 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					Six Months Ended
		March 31,					March 31,
		2005			2004		2005		2004
OPERATING REVENUES
Regulated
Gas distribution		$	434,996		$	396,898	$	726,249	$	658,248
Non-Regulated
Services			23,806			15,250		51,792		34,798
Gas marketing			116,607			61,480		234,786		112,463
Other			1,146			1,327		6,213		2,083
	Total operating revenues		576,555			474,955		1,019,040		807,592
OPERATING EXPENSES
Regulated
Natural and propane gas			321,228			288,284		527,652		463,559
Other operation expenses			34,675			32,808		65,600		62,291
Maintenance			4,680			4,641		8,894		9,070
Depreciation and amortization			5,667			5,711		10,972		11,369
Taxes, other than income taxes			26,477			24,897		42,300		39,729
	Total regulated operating expenses		392,727			356,341		655,418		586,018
Non-Regulated
Services			26,303			19,538		53,175		39,849
Gas marketing			113,705			59,813		229,491		110,101
Other			846			804		6,017		1,771
	Total operating expenses		533,581			436,496		944,101		737,739
Operating Income			42,974			38,459		74,939		69,853
Other Income and (Income Deductions) – Net			(94	)		1,931		1,480		3,390
Interest Charges:
Interest on long-term debt			5,643			4,815		11,551		9,629
Interest on long-term debt to unconsolidated affiliate trust			893			893		1,786		1,786
Other interest charges			1,318			999		2,288		2,084
	Total interest charges		7,854			6,707		15,625		13,499
Income Before Income Taxes			35,026			33,683		60,794		59,744
Income Tax Expense			12,568			12,128		21,704		21,582
Net Income			22,458			21,555		39,090		38,162
Dividends on Redeemable Preferred Stock – Laclede Gas			15			15		30		31
Net Income Applicable to Common Stock		$	22,443		$	21,540	$	39,060	$	38,131
Average Number of Common Shares Outstanding			21,060			19,167		21,038		19,142
Basic Earnings Per Share of Common Stock		$	1.07		$	1.12	$	1.86	$	1.99
Diluted Earnings Per Share of Common Stock		$	1.06		$	1.12	$	1.85	$	1.99

Certain prior-period amounts have been reclassified to conform to current-year presentation.

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