Exhibit 99
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 FIRST-QUARTER EARNINGS
ST. LOUIS, MO, January 29, 2004 - The Laclede Group (NYSE: LG)
today released its earnings report for the first quarter of its fiscal year
2004.
Earnings for the quarter that ended December 31, 2003 were 87 cents
per share, compared with 80 cents per share earned during the same period
last year.
The period-to-period increase resulted primarily from improved
earnings at The Group's core subsidiary, Laclede Gas Company, the largest
natural gas distribution company in Missouri serving the St. Louis
metropolitan area and several other counties in eastern Missouri. The
utility's results this year increased over the same period last year largely
due to improved results from its off-system sales and capacity release
programs, lower operating expenses, and the full quarter impact of the
general rate case that became effective in November 2002. As part of that
case, Laclede Gas implemented a general rate increase and a weather
mitigation rate structure designed to stabilize the utility's earnings while
lessening the impact of weather volatility on its customers during cold
winters. The weather during the current quarter was 18% warmer than normal
and 19% warmer than the same period last year.
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SM&P Utility Resources and Laclede Energy Resources, The Group's
largest unregulated subsidiaries, produced lower results this year compared
to the same quarter last year. The decrease for SM&P primarily reflects the
impact of the partial loss of two major customers, which was first reported
during the same quarter a year ago, partially offset by customer growth in
these and other markets. Laclede Energy Resources' earnings decreased
compared to the same period last year due to lower sales margins.
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, 2003, filed with the Securities and
Exchange Commission.
UNAUDITED
STATEMENTS OF CONSOLIDATED INCOME
THE LACLEDE GROUP, INC.
(Thousands, Except Per Share Amounts)
THREE MONTHS ENDED
DECEMBER 31,
--------------------------------
2003 2002
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OPERATING REVENUES:
Regulated
Gas distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . $261,350 $217,165
Non-Regulated
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,548 30,823
Gas marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,983 31,267
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756 916
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Total operating revenues 332,637 280,171
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OPERATING EXPENSES:
Regulated
Natural and propane gas . . . . . . . . . . . . . . . . . . . . . . . 175,275 133,843
Other operation expenses. . . . . . . . . . . . . . . . . . . . . . . 29,483 31,324
Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,429 4,444
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . 5,658 5,493
Taxes, other than income taxes. . . . . . . . . . . . . . . . . . . . 14,832 14,128
-------------- --------------
Total regulated operating expenses 229,677 189,232
Non-Regulated
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,431 30,625
Gas marketing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,288 30,104
Other .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967 977
-------------- --------------
Total operating expenses 301,363 250,938
-------------- --------------
OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,274 29,233
-------------- --------------
OTHER INCOME AND (INCOME DEDUCTIONS) - NET . . . . . . . . . . . . . . . . . 1,552 1,048
-------------- --------------
INTEREST CHARGES:
Interest on long-term debt . . . . . . . . . . . . . . . . . . . . . . . 4,814 5,205
Preferred dividends and subsidiary trust distributions . . . . . . . . . 866 144
Other interest charges . . . . . . . . . . . . . . . . . . . . . . . . . 1,085 1,349
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Total interest charges 6,765 6,698
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INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . 26,061 23,583
INCOME TAX EXPENSE. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 9,454 8,472
-------------- --------------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,607 15,111
DIVIDENDS ON REDEEMABLE PREFERRED STOCK - LACLEDE GAS. . . . . . . . . . . . 16 16
-------------- --------------
NET INCOME APPLICABLE TO COMMON STOCK. . . . . . . . . . . . . . . . . . . . $ 16,591 $ 15,095
============== ==============
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING. . . . . . . . . . . . . . . . . 19,116 18,961
BASIC EARNINGS PER SHARE OF COMMON STOCK . . . . . . . . . . . . . . . . . . $ 0.87 $ 0.80
DILUTED EARNINGS PER SHARE OF COMMON STOCK . . . . . . . . . . . . . . . . . $ 0.87 $ 0.80
CERTAIN PRIOR-PERIOD AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO CURRENT-YEAR PRESENTATION.