Exhibit 1
NEWS RELEASE
LACLEDE GAS
Contact: Richard N. Hargraves
(314) 342-0652
FOR IMMEDIATE RELEASE
January 27, 2000
Laclede Gas Company today released its earnings report for the
first quarter of the company's Fiscal Year 2000 and for the twelve
months of calendar year 1999. A Statement of Consolidated Income
is attached.
The quarter ended December 31, 1999, which is the first quarter
of Laclede's fiscal year 2000, equaled the fourth warmest comparable
quarter in the last 100 years - 18% warmer than normal and 5% warmer
than last year. Laclede was able to offset some of the impact of the
warm weather through the continued success of its cost-control program,
as well as improved results related to the company's Gas Supply Incentive
Plan.
Earnings this quarter were $.51 per share compared with $.55 per
share during the same period last year. However, Laclede pointed out
that, despite the extraordinarily warm weather this year, earnings from
its core gas distribution operations actually were greater in the first
quarter of Fiscal 2000 than in last year's first quarter, which
reflected a one-time $.07 per share benefit from the November 1998
sale of Laclede's interest in the Centre Park 40 property, a real
estate venture of a non-utility subsidiary.
Earnings for calendar year 1999 were $1.40 per share compared with
$1.36 per share in calendar 1998. Laclede achieved this year-to-year
earnings increase despite a one-time charge in calendar 1999 of
approximately $.11 per share resulting from the sale of Laclede's
interest in Clark Enterprises.
Laclede's cost-control efforts had a positive impact on calendar
year results, as did regulatory accounting changes instituted July 1,
1998, as part of the settlement of the Company's 1998 rate case. The
resulting operating and depreciation expense reductions, coupled
with moderately improved sales reflecting 1.1% colder weather,
contributed to the earnings increase.
Revenues for calendar 1999 were $489.5 million, compared with
$511.6 million in calendar 1998. The decrease in revenues reflects
lower wholesale gas costs that are passed on to Laclede's customers.
As previously reported, the Missouri Public Service Commission
authorized a general rate increase designed to increase Laclede's
revenues by $11.24 million annually. The increase was effective for
services rendered to Laclede's customers on or after December 27,
1999. Thus, although it had only a minimal impact in either
calendar 1999 or the first quarter of Fiscal 2000, this general rate
increase should have a significant beneficial impact on Laclede's
future results.
Note: This 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,
1999 filed with the Securities and Exchange Commission.
UNAUDITED
STATEMENTS OF CONSOLIDATED INCOME
Laclede Gas Company
and Subsidiary Companies
(In Thousands Except Per Share Amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
1999 1998 1999 1998
---- ---- ---- ----
Operating Revenues:
Utility operating revenues $144,659 $149,759 $468,610 $498,282
Non-utility operating revenues 6,775 3,753 20,900 13,366
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Total operating revenues 151,434 153,512 489,510 511,648
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Operating Expenses:
Utility operating expenses
Natural and propane gas 81,596 86,704 241,242 272,263
Other operation expenses 22,653 23,667 82,748 87,179
Maintenance 4,708 5,082 19,209 18,841
Depreciation and amortization 5,495 5,287 21,698 23,994
Taxes, other than income taxes 10,372 10,520 41,521 41,557
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Total utility operating expenses 124,824 131,260 406,418 443,834
Non-utility operating expenses 6,595 3,640 20,200 12,531
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Total operating expenses 131,419 134,900 426,618 456,365
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Operating Income 20,015 18,612 62,892 55,283
Other Income and Income Deductions-
Net 776 1,964** (1,661)* 2,478**
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Income Before Interest and
Income Taxes 20,791 20,576 61,231 57,761
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Interest Charges:
Interest on long-term debt 3,784 3,347 14,403 14,291
Other interest charges 2,189 1,957 6,859 6,788
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Total interest charges 5,973 5,304 21,262 21,079
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Income Before Income Taxes 14,818 15,272 39,969 36,682
Income Taxes 5,237 5,565 14,033 12,716
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Net Income 9,581 9,707 25,936 23,966
Dividends on Preferred Stock 24 24 97 97
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Earnings Applicable to Common Stock $ 9,557 $ 9,683 $ 25,839 $ 23,869
================== ===================
Average Number of Common
Shares Outstanding 18,878 17,628 18,453 17,615
Earnings Per Share Of Common Stock $.51 $.55 $1.40 $1.36
<FN>
NOTE: Certain prior-period amounts have been reclassified to conform to
current-year presentation.
* Includes a one-time pre-tax charge of $3.2 million.
**Includes a one-time pre-tax gain of $1.9 million.