Exhibit 99.2
NEWS RELEASE
THE LACLEDE GROUP
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720 OLIVE STREET, ST. LOUIS, MO 63101
CONTACT: George L. Csolak
(314) 342-0652
FOR IMMEDIATE RELEASE
THE LACLEDE GROUP ANNOUNCES
THIRD QUARTER AND YEAR-TO-DATE EARNINGS
ST. LOUIS, MO., July 29, 2004 -- The Laclede Group, Inc. (NYSE: LG)
today announced improved earnings for the third quarter of its fiscal year
2004 over the same period last year and also for the first nine months of
the fiscal year.
Earnings for the quarter that ended June 30, 2004 were $.19 per
share, compared with $.11 per share earned during the same period last year.
The increase in earnings from last year is primarily due to improved results
from SM&P Utility Resources, Inc., (SM&P), one of the nation's major
underground facilities locating and marking service companies, and to a
lesser extent from Laclede Energy Resources, Inc., (LER), a non-regulated
natural gas marketing and management company.
The 2004 quarterly results of Laclede Gas Company, Missouri's
largest natural gas distribution company, were essentially the same as last
year. Laclede Gas experienced higher earnings from sales in its service area
this year as well as higher revenues from off-system sales and capacity
release; however, such benefits were offset by higher interest expense
reflecting the Utility's recent debt offerings and increases in other
operating expenses.
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Earnings for the nine-month period ended June 30, 2004 were $2.16
per share, compared with $2.04 per share for the same nine-month period last
year, even though the weather during this period was 14% warmer than last
year and 13% warmer than normal. The increase in earnings is principally due
to the full-year effect of implementation of a 2002 general rate increase by
Laclede Gas (including a rate structure designed to provide the ability to
recover distribution costs in a manner that is significantly less sensitive
to weather while mitigating the effect of weather on customers' bills), a
one-time non-operating benefit at Laclede Gas related to its interest as a
policyholder in the sale of a mutual insurance company, higher revenues from
off-system sales and capacity release, and improved results from SM&P and
LER.
Due to the seasonal nature of the core natural gas utility
business, Laclede Group's earnings are typically concentrated in the colder
months of the year. While the Company's non-utility operations provide some
offset to this seasonal pattern, Laclede Group normally experiences losses
during the fourth quarter months of July through September.
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, 2004, 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,
---------------------- ----------------------
2004 2003 2004 2003
---- ---- ---- ----
OPERATING REVENUES:
Regulated
Gas distribution . . . . . . . . . . . . . . . . . . . $125,870 $114,207 $ 784,118 $688,828
Non-Regulated
Services . . . . . . . . . . . . . . . . . . . . . . . 34,973 27,276 69,771 75,414
Gas marketing. . . . . . . . . . . . . . . . . . . . . 80,475 41,762 192,938 118,903
Other. . . . . . . . . . . . . . . . . . . . . . . . . 3,742 3,350 5,825 5,800
-------- -------- ---------- --------
Total operating revenues 245,060 186,595 1,052,652 888,945
-------- -------- ---------- --------
OPERATING EXPENSES:
Regulated
Natural and propane gas. . . . . . . . . . . . . . . . 68,855 60,293 532,414 442,054
Other operation expenses . . . . . . . . . . . . . . . 28,411 27,097 90,702 88,084
Maintenance. . . . . . . . . . . . . . . . . . . . . . 4,599 4,583 13,669 13,977
Depreciation and amortization. . . . . . . . . . . . . 5,746 5,579 17,115 16,668
Taxes, other than income taxes . . . . . . . . . . . . 12,018 11,553 51,747 48,260
-------- -------- ---------- --------
Total regulated operating expenses 119,629 109,105 705,647 609,043
Non-Regulated
Services . . . . . . . . . . . . . . . . . . . . . . . 29,619 24,721 69,468 78,666
Gas marketing. . . . . . . . . . . . . . . . . . . . . 78,567 40,381 188,668 115,228
Other. . . . . . . . . . . . . . . . . . . . . . . . . 3,690 3,185 5,461 5,269
-------- -------- ---------- --------
Total operating expenses 231,505 177,392 969,244 808,206
-------- -------- ---------- --------
OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . 13,555 9,203 83,408 80,739
-------- -------- ---------- --------
OTHER INCOME AND (INCOME DEDUCTIONS) - NET . . . . . . . . . 65 (68) 3,402 974
-------- -------- ---------- --------
INTEREST CHARGES:
Interest on long-term debt . . . . . . . . . . . . . . . 6,207 4,945 15,836 15,355
Interest on long-term debt to unconsolidated
affiliate trust. . . . . . . . . . . . . . . . . . . . 893 866 2,626 1,877
Other interest charges . . . . . . . . . . . . . . . . . 565 810 2,649 3,112
-------- -------- ---------- --------
Total interest charges 7,665 6,621 21,111 20,344
-------- -------- ---------- --------
INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . 5,955 2,514 65,699 61,369
INCOME TAX EXPENSE . . . . . . . . . . . . . . . . . . . . . 2,192 476 23,774 22,635
-------- -------- ---------- --------
NET INCOME. . . . . . . . . . . . . . .. . . . . . . . . . . 3,763 2,038 41,925 38,734
DIVIDENDS ON REDEEMABLE PREFERRED STOCK - LACLEDE GAS. . . . 16 16 47 47
-------- -------- ---------- --------
NET INCOME APPLICABLE TO COMMON STOCK. . . . . . . . . . . . $ 3,747 $ 2,022 $ 41,878 $ 38,687
======== ======== ========== ========
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING. . . . . . . . . 19,863 19,044 19,381 19,002
BASIC EARNINGS PER SHARE OF COMMON STOCK . . . . . . . . . . $0.19 $0.11 $2.16 $2.04
DILUTED EARNINGS PER SHARE OF COMMON STOCK . . . . . . . . . $0.19 $0.11 $2.16 $2.04
CERTAIN PRIOR-PERIOD AMOUNTS HAVE BEEN RECLASSIFIED TO CONFORM TO
CURRENT-YEAR PRESENTATION.