Exhibit 1
NEWS RELEASE
THE LACLEDE GROUP
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720 OLIVE STREET, ST. LOUIS, MO 63101
CONTACT: Richard N. Hargraves
(314) 342-0652
FOR IMMEDIATE RELEASE
THE LACLEDE GROUP ANNOUNCES FIRST-QUARTER EARNINGS
ST. LOUIS, Mo., January 30, 2003 -- The Laclede Group, Inc. (NYSE:
LG) today released its earnings report for the first quarter of its fiscal
year 2003.
Earnings for the quarter that ended December 31, 2002, were 80
cents per share, compared with 41 cents per share earned during the same
period last year. Earnings for the quarter were almost solely derived from
the regulated activities of the Company's largest subsidiary, Laclede Gas
Company, Missouri's largest natural gas distribution company. Those utility
earnings come from the sale of heating energy, which has historically been
heavily influenced by weather.
The year-over-year earnings improvement is due, in large part, to
21% higher sales linked to a return to near-normal temperatures in Laclede
Gas' service area this year. Temperatures this year were approximately 32%
colder than the same period last year, which was the third warmest
October-to-December period on record.
Also contributing to the Company's improved results were the
impacts of general rate increases that became effective December 1, 2001 and
November 9, 2002. Additionally, as part of the November case, we initiated
an innovative new weather
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mitigation rate design which lessens, for the future, the impact of weather
volatility on Laclede Gas customers during cold winters and stabilizes the
Company's earnings.
This new rate design provides Laclede Gas with the ability to
recover its distribution costs, which are essentially fixed, in a manner
that is significantly less sensitive to weather. This means that, in the
event of a colder-than-normal winter, when bills and our revenues would
traditionally have been higher because of increased customer usage,
Laclede's customers will not be charged more than the utility's actual
authorized distribution costs. Conversely, in a warmer-than-normal winter,
when bills and our earnings would be lower, the rate structure will prevent
any significant weather-related under-recovery of these actual distribution
costs.
These positive impacts were somewhat offset by an accrual to the
Company's provision for uncollectible accounts in recognition of higher
levels of uncollectible bills from utility customers unable to pay their gas
bills during the colder weather.
Additionally, the Company's non-regulated operations improved
results over the same quarter last year.
At today's Annual Meeting of Shareholders, Mr. Arnold Donald, an
outstanding civic and business leader, will be elected to The Laclede
Group's Board of Directors.
Mr. Donald is Chairman and Chief Executive Officer of Merisant
Company, a global corporation based in St. Louis that manufactures and
markets a number of leading tabletop sweetener products around the world,
such as Equal(R) and Canderel(R). Prior to assuming leadership of Merisant,
Mr. Donald was a senior executive at Monsanto Company, which he joined in
1977.
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Mr. Donald will succeed Mr. Andrew B. Craig III, who is retiring
from the Board after serving with distinction since 1994. Mr. Craig, the
former Chairman of the Board of NationsBank, is co-founder and Managing
Director of RiverVest Venture Partners, a St. Louis-based venture capital
firm focusing on early-stage life science investments.
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-K for the
year ended September 30, 2002, 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
DECEMBER 31,
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2002 2001
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OPERATING REVENUES:
Regulated
Gas distribution . . . . . . . . . . . . . . . . . . . . . $217,165 $183,211
Non-Regulated
Services . . . . . . . . . . . . . . . . . . . . . . . . . 30,823 -
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . 32,183 11,433
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Total operating revenues 280,171 194,644
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OPERATING EXPENSES:
Regulated
Natural and propane gas . . . . . . . . . . . . . . . . . 133,843 115,594
Other operation expenses. . . . . . . . . . . . . . . . . 31,324 26,276
Maintenance . . . . . . . . . . . . . . . . . . . . . . . 4,444 4,314
Depreciation and amortization . . . . . . . . . . . . . . 5,493 6,582
Taxes, other than income taxes. . . . . . . . . . . . . . 14,128 12,899
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Total regulated operating expenses 189,232 165,665
Non-Regulated
Services . . . . . . . . . . . . . . . . . . . . . . . . . 30,625 -
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . 31,081 11,663
-------- --------
Total operating expenses 250,938 177,328
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OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . 29,233 17,316
OTHER INCOME AND INCOME DEDUCTIONS - NET . . . . . . . . . . . . 1,048 924
-------- --------
INCOME BEFORE INTEREST AND INCOME TAXES. . . . . . . . . . . . . 30,281 18,240
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INTEREST CHARGES:
Interest on long-term debt . . . . . . . . . . . . . . . . . 5,205 5,205
Preferred dividends and distributions of subsidiary trust. . 144 -
Other interest charges . . . . . . . . . . . . . . . . . . . 1,349 1,359
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Total interest charges 6,698 6,564
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INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . 23,583 11,676
INCOME TAX EXPENSE . . . . . . . . . . . . . . . . . . . . . . . 8,472 3,936
DIVIDENDS ON PREFERRED STOCK - LACLEDE GAS . . . . . . . . . . . 16 21
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NET INCOME APPLICABLE TO COMMON STOCK. . . . . . . . . . . . . . $ 15,095 $ 7,719
======== ========
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING. . . . . . . . . . . 18,961 18,878
EARNINGS PER SHARE OF COMMON STOCK . . . . . . . . . . . . . . . $ 0.80 $ 0.41
CERTAIN PRIOR-PERIOD AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT-YEAR PRESENTATION.
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