Exhibit 1
NEWS RELEASE
LACLEDE GAS
___________________________________________________________________________
720 Olive Street, St. Louis, MO 63101
CONTACT: Richard N. Hargraves
(314) 342-0652
FOR IMMEDIATE RELEASE
July 26, 2001
Laclede Gas announces 3rd quarter earnings
ST. LOUIS, MO - Laclede Gas Company (NYSE: LG) today announced that,
for the third quarter of its fiscal year, which ended June 30, 2001,
the Company experienced a loss of $.20 per share compared with a gain of
$.02 per share for the same period last year. These results were in line
with the Company's previous projection of a third-quarter loss ranging from
$.20 to $.25 per share.
Laclede expects to hit its fiscal year earnings target of 15% to 23%
higher than last year, with earnings projected to be within the range of
$1.58 to $1.68 per share.
A key component of last year's modest third-quarter earnings gain
was incremental income derived from off-system sales opportunities pursuant
to favorable market opportunities. This year, Laclede's third-quarter Gas
Supply Incentive Program (GSIP) and off-system sales activities produced
savings of $7.9 million for its customers and $3.2 million in pretax income
to its shareholders.
The nature of Laclede's core business - the distribution and sale
of heating energy - requires the Company to maintain its distribution system
year-round but generates most of its revenue within a few cold-weather
months. Therefore, Laclede generally posts losses in the spring and
summer months. This year, 41% warmer-than-normal weather within Laclede's
(more)
service area contributed to lowered customer demand for natural gas heating
energy by 13% compared with last year's third quarter.
Earnings per share for the nine months ended June 30, 2001, were $1.88
per share compared with $1.55 per share for the same period last year. The
increase is primarily the result of higher sales due to temperatures that
were 9% colder than normal and 30% colder than last year, which was the
third warmest comparable period in the last 100 years. The impact of a
general rate increase that became effective December 27, 1999, also
contributed to the earnings improvement. These factors were partially offset
by a higher provision for uncollectible accounts resulting from this past
winter's record wholesale gas prices, higher carrying costs incurred by the
Company related to the natural gas it purchased in the wholesale market
before receiving payment from customers, expenses relating to strategic
planning initiatives, cost for the formation of a holding company, and
increased distribution costs. For the first nine months of the fiscal year,
Laclede's GSIP and off-systems sales efforts produced savings of $21.5
million for Laclede's customers and $7.8 million in pretax income to its
shareholders.
Earnings for the 12 months ended June 30, 2001, were $1.70 per share
compared with $1.34 per share for the same period a year ago, an increase
that was essentially due to the aforementioned factors.
Revenues for the 12 months ended June 30, 2001, were $991.8 compared
with $540.6 million for the prior 12-month period. The increase is
principally due to higher wholesale gas costs reflected in our customers'
rates, as well as higher sales volumes resulting from colder weather.
(more)
Laclede Gas is the largest natural gas distribution company in
Missouri, serving 633,000 customers in St. Louis and surrounding counties in
eastern Missouri.
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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 ending June
30, 2001, to be 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 Nine Months Ended Twelve Months Ended
June 30, June 30, June 30,
2001 2000 2001 2000 2001 2000
---- ---- ---- ---- ---- ----
Operating Revenues:
Utility operating revenues $109,462 $ 86,134 $851,052 $460,788 $921,416 $511,196
Non-utility operating revenues 13,439 9,159 59,616 24,170 70,422 29,428
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Total operating revenues 122,901 95,293 910,668 484,958 991,838 540,624
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Operating Expenses:
Utility operating expenses
Natural and propane gas 62,737 40,274 606,893 263,660 638,496 277,617
Other operation expenses 24,806 21,007 78,655 66,049 99,669 84,872
Maintenance 4,849 4,296 14,414 13,947 19,111 18,849
Depreciation and amortization 6,597 6,390 19,710 18,340 26,144 23,811
Taxes, other than income taxes 11,553 8,786 56,845 35,282 64,362 41,606
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Total utility operating expenses 110,542 80,753 776,517 397,278 847,782 446,755
Non-utility operating expenses 13,109 8,921 58,182 23,682 68,742 28,826
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Total operating expenses 123,651 89,674 834,699 420,960 916,524 475,581
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Operating Income (Loss) (750) 5,619 75,969 63,998 75,314 65,043
Other Income and Income Deductions-
Net (100) 8 1,456 839 1,352 (2,100)*
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Income Before Interest and
Income Taxes (850) 5,627 77,425 64,837 76,666 62,943
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Interest Charges:
Interest on long-term debt 4,414 3,784 13,168 11,353 16,979 15,137
Other interest charges 2,361 1,878 9,080 6,365 11,559 7,574
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Total interest charges 6,775 5,662 22,248 17,718 28,538 22,711
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Income (Loss) Before Income Taxes (7,625) (35) 55,177 47,119 48,128 40,232
Income Tax Expense (Benefit) (3,952) (357) 19,626 17,762 15,969 14,853
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Net Income (Loss) (3,673) 322 35,551 29,357 32,159 25,379
Dividends on Preferred Stock 22 22 66 70 89 94
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Earnings (Loss) Applicable to
Common Stock $ (3,695) $ 300 $ 35,485 $ 29,287 $ 32,070 $ 25,285
================== =================== ==================
Average Number of Common
Shares Outstanding 18,878 18,878 18,878 18,878 18,878 18,878
Earnings (Loss) Per Share Of
Common Stock $(.20) $0.02 $1.88 $1.55 $1.70 $1.34
<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.
</FN>