Exhibit 99.1
The Empire District Electric Company
Reports Declaration of Dividends and 2006 Earnings
JOPLIN, Mo.--(BUSINESS WIRE)--Feb. 1, 2007--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 March 15, 2007, to holders of record as
of March 1, 2007.
The Company reported earnings for 2006 of $39.3 million, or $1.39
per share on an increased number of shares outstanding, compared to
earnings of $23.8 million, or $0.92 per share, for 2005. Earnings for
the fourth quarter of 2006 were $8.2 million, or $0.27 per share,
compared to fourth quarter 2005 earnings of $1.3 million, or $0.05 per
share.
Operating revenues compared to 2005 increased 13.6% from $364.1
million to $413.5 million, positively impacting earnings by $1.25 per
share. A full-year of increased electric rates for 2006 in Missouri,
Arkansas, and Kansas, including the effect of the Missouri Interim
Energy Charge (IEC), contributed an estimated $15.8 million. Electric
revenues also increased an estimated $12.9 million from strong
customer growth and an increase to our estimate of unbilled revenues.
The overall increase to electric revenues was partially offset by the
effect of weather which caused an estimated decrease of $2.9 million.
Off-system and other electric revenues decreased by an estimated $1.7
million. Revenues from our gas segment, acquired on June 1, 2006, were
$25.1 million.
Total electric fuel and purchased power costs decreased $5.2
million, or 3.1%, in 2006. The decrease in our costs as a percentage
of electric revenues is due in part to an increase in purchased
wind-generation and a reduction in gas prices compared to last year.
The reduced electric power costs partially offset natural gas
purchased for resale by our gas segment which totaled $15.3 million.
Together, the impact reduced earnings per share by $0.26.
Other operating and maintenance expenses increased $7.9 million in
2006 with approximately $6.7 million of the increase attributable to
the operations of our gas segment since June. The remaining $1.2
million increase was primarily due to maintenance of our electric and
water facilities. The impact on earnings from increased operating and
maintenance expenses was an estimated $0.20 per share. In addition,
depreciation expenses were $3.7 million higher than last year,
negatively impacting earnings by an estimated $0.09 per share. Higher
taxes and interest, although partially offset by increased allowances
for funds used during construction (AFUDC), decreased earnings per
share by an estimated $0.11. Earnings for the year were also
negatively impacted $0.11 per share by the dilutive effect of an
additional 3.8 million shares of common stock sold through a public
offering in June 2006.
Also recorded during the fourth quarter of 2006 was a write-off of
$0.8 million, or approximately $0.02 per share, for construction
expenditures related to the completion of the Energy Center's Units 3
and 4, which is consistent with the Missouri Public Service Commission
order in the recently completed rate proceeding.
For the fourth quarter of 2006, revenues increased $19.8 million,
an estimated $0.50 per share, of which $18.6 million was attributable
to our gas segment. Decreases in electric fuel and purchased power
costs for the quarter of $10.9 million, a positive impact of $0.28 per
share, were offset by natural gas purchased for resale in our gas
segment of $12.3 million, a negative impact of $0.31 per share.
Increases in other operating and maintenance expenses decreased
earnings by $0.14 per share, and increases in depreciation, taxes, and
interest expense, although partially offset by increased AFUDC,
reduced earnings per share by approximately $0.05. Earnings for the
quarter were also negatively impacted $0.04 per share by the dilutive
effect of the additional shares of common stock discussed above.
Empire's electric operations contributed $7.5 million to Empire's
net income for the fourth quarter of 2006 and $40.7 million for the
year. As expected, earnings from the gas segment acquired on June 1,
2006 were relatively flat for the first half-year of operation due to
the effect of transition costs. The gas operations contributed $0.7
million to Empire's net income for the fourth quarter and negatively
impacted earnings by $0.7 million for the year. During 2006, the
Company sold its ownership interests in MAPP and Conversant, former
subsidiaries of EDE Holdings, Inc. The effect of these discontinued
operations and the gains realized on the sales combined with our other
non-regulated operations had no overall impact on earnings for the
fourth quarter. The annual impact of the discontinued operations
combined with other non-regulated operations reduced 2006 earnings by
$0.7 million.
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
tomorrow afternoon, February 2, 2007, at 1:00 p.m. Eastern Time to
discuss the year-end and fourth quarter 2006 earnings. To access the
conference call, parties in the United States should dial
1-800-659-2056 (International 617-614-2714), passcode 87939309, 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 conference ID #98090322.
Forward-looking and other material information may be discussed during
the conference call.
THE EMPIRE DISTRICT ELECTRIC COMPANY
FINANCIAL HIGHLIGHTS
(in 1,000's except per share amounts)
Quarter Ended December 31 Year Ended December 31
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2006 2005 2006 2005
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Operating Revenues $106,561 $86,773 $413,453 $364,101
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Net Income $8,199 $1,266 $39,280 $23,768
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Weighted Average
Common
Shares Outstanding -
Basic 30,201 26,040 28,277 25,898
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Weighted Average
Common
Shares Outstanding -
Diluted 30,233 26,074 28,296 25,941
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Earnings Per Weighted
Average Share of
Common - Basic and
Diluted $0.27 $0.05 $1.39 $0.92
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Based in Joplin, Missouri, The Empire District Electric Company
(NYSE: EDE) is an investor-owned utility providing electric, 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. Certain subsidiaries of the
Company also provide fiber optic and Internet 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
and 10-Q.
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