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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