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 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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