Exhibit 99.1
The Empire District Electric Company Earnings Report and
Declaration of Dividends
JOPLIN, Mo.--(BUSINESS WIRE)--Oct. 26, 2006--At the Board of
Directors meeting of The Empire District Electric Company (NYSE:EDE)
held today, the Directors declared a quarterly dividend of $0.32 per
share on Common Stock payable December 15, 2006, to holders of record
as of December 1, 2006.
The Company reported earnings for the third quarter of 2006 of
$22.4 million, or $0.74 per share, compared with earnings in the same
quarter of 2005 of $19.6 million, or $0.75 per share. Earnings for the
twelve months ended September 30, 2006 were $32.3 million, or $1.19
per share. This compares to earnings of $24.5 million, or $0.95 per
share, for the twelve months ended September 30, 2005.
For the quarter, revenues increased $11.8 million, or 9.9 percent,
as compared to the third quarter of 2005, positively impacting
earnings per share by an estimated $0.30. Increased electric rates,
including the effect of the Missouri Interim Energy Charge (IEC),
increased revenues by an estimated $1.6 million. Revenues increased an
estimated $10.1 million as a result of an increase in the Company's
estimate of unbilled revenue as well as strong customer growth.
Revenues from the gas operations of The Empire District Gas Company
(EDG), acquired on June 1, 2006, contributed $4.9 million. The
increases to electric revenues were partially offset by the effect of
weather for this quarter compared to last year, which reduced revenues
by an estimated $3.8 million, and by lower off-system and other sales,
which were approximately $1.2 million less than in the third quarter
of 2005. The non-regulated and water businesses contributed a combined
$0.2 million to the increase in revenues as compared to the prior
period.
Total electric fuel and purchased power costs for the quarter
decreased by $0.4 million, or 0.9 percent, compared to the third
quarter of last year, with electric fuel costs decreasing by a total
of $3.0 million offset by a $2.6 million increase in purchased power
costs. Electric fuel costs were impacted by decreased volumes for both
natural gas and coal which were partially offset by increased prices
for both commodities. The cost of natural gas sold by EDG in the
quarter was $2.2 million.
The IEC revenues, mentioned previously, did not recover all the
Missouri related fuel and purchased power costs incurred in the third
quarter, with an estimated $5.0 million in fuel costs for our Missouri
customers not recovered. Since inception of the IEC on March 27, 2005,
the costs of fuel and purchased power are approximately $23.9 million
higher than the costs recovered through our base rates and the IEC
during the period.
Increases in other operating and maintenance expenses, primarily
due to EDG operating and maintenance expenses of $2.8 million, reduced
earnings by an estimated $3.2 million, or $0.08 per share. Increased
depreciation expense, general taxes and interest expense had a
negative impact on earnings by an accumulated $0.04 per share. Also
negatively impacting earnings by an estimated $0.12 per share was the
dilutive effect of an additional 3.8 million shares of common stock
sold through a public offering in June 2006.
EDE Holdings, Inc., a subsidiary of The Empire District Electric
Company, sold its interests in Mid-America Precision Products (MAPP)
on August 31, 2006. The gain from the sale increased earnings per
share by approximately $0.01.
Total revenues for the twelve months ended September 30, 2006 were
higher by $47.3 million, or 13.6 percent, positively impacting
earnings per share by $1.22. Electric revenues increased $39.9 million
when compared to the twelve months ended September 30, 2005, and
revenues from water and non-regulated businesses increased $0.8
million. The effect of rate increases positively impacted revenues by
$25.6 million, including $4.1 million from the IEC, while an increase
in the Company's estimate for unbilled revenue as well as continued
customer growth contributed an estimated $15.2 million. Off-system and
other electric sales increased revenues by $1.6 million while less
favorable weather during the current twelve month ended period as
compared to the prior year period had a negative effect on revenues of
approximately $2.5 million. Since completing the acquisition of EDG on
June 1, 2006, revenues from the gas operations have totaled $6.6
million.
For the twelve months ended September 30, 2006, total electric
fuel, purchased power and natural gas costs increased $27.1 million,
or 18.4 percent, reducing earnings per share by an estimated $0.70 of
which $3.0 million, or $0.08 per share, was attributable to natural
gas purchased for resale by EDG. Other operating and maintenance
expenses increased $1.9 million, decreasing earnings per share by
$0.05, while depreciation expense, general taxes and interest expense
reduced earnings per share by an estimated $0.11, $0.02 and $0.03,
respectively. Decreased healthcare and pension costs in the electric
business of $3.3 million and decreased non-regulated expenses of $0.5
million were offset by operations and maintenance expenses of $3.8
million attributable to EDG. The dilutive effect of the additional 3.8
million shares of common stock mentioned previously reduced earnings
by an estimated $0.07 per share for the twelve months ended September
30, 2006.
The impact of revenue and expense items on earnings per share is
shown on an after-tax basis throughout this press release and compares
the period referred to with the same period of the prior year. The
estimated earnings per share impact of individual items is a non-GAAP
presentation; however, we believe it is useful in understanding the
change in the Company's earnings between periods. All earnings per
share amounts reflect both basic and fully diluted weighted average
shares outstanding.
Bill Gipson, President and CEO, will host a conference call
Friday, October 27, 2006, at 1:00 p.m. Eastern Time to discuss
earnings for the third quarter and twelve months ended September 30,
2006. To phone in to the conference call, parties in the United States
should dial 1-800-561-2813 (International 617-614-3529), passcode #
11822111, any time after 12:45 p.m. Eastern Time. The presentation can
also be accessed from Empire's website at www.empiredistrict.com. A
replay of the call will be available for two weeks by dialing
1-888-286-8010 (International 1-617-801-6888) and entering passcode #
37670590. Forward-looking and other material information may be
discussed during the conference call.
THE EMPIRE DISTRICT ELECTRIC COMPANY FINANCIAL HIGHLIGHTS
(in 000's except per share amounts)
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Three Months Ended Twelve Months Ended
September 30 September 30
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2006 2005 2006 2005
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Operating Revenues $131,583 $119,755 $395,708 $348,423
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Net Income $22,352 $19,594 $32,347 $24,459
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Weighted Average Common
Shares Outstanding - Basic 30,120 25,962 27,228 25,797
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Weighted Average Common
Shares Outstanding -
Diluted 30,141 26,015 27,244 25,844
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Earnings Per Weighted
Average Share of Common -
Basic and Diluted $0.74 $0.75 $1.19 $0.95
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Based in Joplin, Missouri, The Empire District Electric Company
(NYSE:EDE) is an investor-owned, regulated utility providing
electricity, natural gas (through its wholly owned subsidiary The
Empire District Gas Company) and water service, with approximately
215,000 customers in Missouri, Kansas, Oklahoma and Arkansas. The
Company also provides fiber optic, internet and customer information
software services.
Certain matters discussed in this press release are
"forward-looking statements" intended to qualify for the safe harbor
from liability established by the Private Securities Litigation Reform
Act of 1995. Such statements address future plans, objectives,
expectations, and events or conditions concerning various matters.
Actual results in each case could differ materially from those
currently anticipated in such statements, by reason of the factors
noted in our filings with the SEC, including the most recent Form
10-K.
CONTACT: The Empire District Electric Company
Media Communications
Amy Bass, 417-625-5114
Director of Corporate Communications
abass@empiredistrict.com
or
Investor Relations
Jan Watson, 417-625-5108
Secretary - Treasurer
jwatson@empiredistrict.com