The Laclede Group Announces Improved Third Quarter and Fiscal Year-to-Date Earnings and Declares Dividend
ST. LOUIS, MO, July 28, 2005 — The Laclede Group (NYSE: LG) today announced improved earnings for the third quarter and for the first nine months of its fiscal year 2005 over those of the same periods last year. Additionally, its Board of Directors declared a quarterly dividend of 34-1/2 cents per share on its common stock, payable October 3, 2005, to shareholders of record on September 12, 2005.
Consolidated net income for the quarter ended June 30, 2005, was $6.1 million this fiscal year, or $2.4 million higher than for the same period last fiscal year. On an earnings-per-share basis, third quarter earnings for fiscal 2005 were $.29 per share, compared to $.19 per share for the same period in fiscal 2004.
The increase in The Laclede Group’s consolidated quarterly earnings resulted from improved performance at Laclede Gas Company, as well as SM&P Utility Resources, Inc. Laclede Gas Company is Missouri’s largest natural gas distribution utility and the core subsidiary of The Laclede Group. SM&P is an underground facility locating and marking company, one of The Laclede Group’s principal unregulated subsidiaries.
Laclede Gas’ quarterly earnings improved over those for the third quarter of fiscal 2004 due in part to its ability to recover certain mandated distribution costs through the Infrastructure System Replacement Surcharge, lower operating costs, and the receipt of the second of three expected distributions associated with its interest as a policyholder in the sale of a mutual insurance company. SM&P’s third quarter improvement in fiscal 2005 over the same period last fiscal year was due primarily to attainment of substantial additional business in both new and existing markets. Group’s other major non-regulated subsidiary, Laclede Energy Resources (LER), earned slightly less during this fiscal year’s third quarter than it did in the same period last fiscal year. LER offers natural gas commodity services to customers within as well as outside of the St. Louis area.
The Laclede Group’s consolidated net income for the nine-month period ended June 30, 2005, was $45.2 million, or $3.3 million more than the same period last fiscal year. However, earnings on a per share basis were $2.14, compared to $2.16 for the same period last year, due to the increase in shares of common stock outstanding resulting largely from the public offering and sale of common stock in May 2004. The fiscal year-to-date increase in consolidated net income is primarily due to improved results at SM&P, as well as at LER. Fiscal year-to-date earnings for Laclede Gas were down compared to the same period last year due to higher operating costs, lower sales, and a smaller policyholder distribution from the sale of the mutual insurance company referenced above.
Laclede Gas Company, which contributes the majority of The Laclede Group’s consolidated earnings, has seasonal earnings that are typically concentrated in the colder months of the year. While SM&P, LER and other non-utility operations provide some offset to this seasonal pattern, The Laclede Group historically has experienced losses during its fourth quarter, July through September.
In addition, Laclede Gas Company declared a quarterly dividend of 31-1/4 cents per share on Preferred Stock, Series B, and a quarterly dividend of 28-1/2 cents per share on Preferred Stock, Series C, payable September 30, 2005 to shareholders of record September 12, 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 March 31, 2005, 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
Nine Months Ended
June 30,
June 30,
2005
2004
2005
2004
OPERATING REVENUES
Regulated
Gas distribution
$
162,371
$
125,870
$
888,620
$
784,118
Non-Regulated
Services
45,118
34,973
96,910
69,771
Gas marketing
103,008
80,475
337,794
192,938
Other
830
3,742
7,043
5,825
Total operating revenues
311,327
245,060
1,330,367
1,052,652
OPERATING EXPENSES
Regulated
Natural and propane gas
102,995
68,855
630,647
532,414
Other operation expenses
27,896
28,411
93,496
90,702
Maintenance
5,160
4,599
14,054
13,669
Depreciation and amortization
5,947
5,746
16,919
17,115
Taxes, other than income taxes
13,198
12,018
55,498
51,747
Total regulated operating expenses
155,196
119,629
810,614
705,647
Non-Regulated
Services
38,195
29,619
91,370
69,468
Gas marketing
101,454
78,567
330,945
188,668
Other
986
3,690
7,003
5,461
Total operating expenses
295,831
231,505
1,239,932
969,244
Operating Income
15,496
13,555
90,435
83,408
Other Income and (Income Deductions) – Net
822
66
2,302
3,456
Interest Charges:
Interest on long-term debt
5,642
6,207
17,193
15,836
Interest on long-term debt to unconsolidated affiliate trust
894
894
2,680
2,680
Other interest charges
883
565
3,171
2,649
Total interest charges
7,419
7,666
23,044
21,165
Income Before Income Taxes
8,899
5,955
69,693
65,699
Income Tax Expense
2,788
2,192
24,492
23,774
Net Income
6,111
3,763
45,201
41,925
Dividends on Redeemable Preferred Stock – Laclede Gas
13
16
43
47
Net Income Applicable to Common Stock
$
6,098
$
3,747
$
45,158
$
41,878
Average Number of Common Shares Outstanding
21,103
19,863
21,060
19,381
Basic Earnings Per Share of Common Stock
$
.29
$
.19
$
2.14
$
2.16
Diluted Earnings Per Share of Common Stock
$
.29
$
.19
$
2.14
$
2.16
Certain prior-period amounts have been reclassified to conform to current-year presentation.
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