Exhibit 99.1
The Empire District Electric Company
Earnings Report and Declaration of Dividends
JOPLIN, Mo.--(BUSINESS WIRE)--April 26, 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 June 15, 2007, to holders of record as
of June 1, 2007.
The Company, an operator of regulated electric, gas and water
utilities, announced today the following results for the quarter and
twelve month period ended March 31, 2007:
Earnings Highlights
-- The Company reported consolidated earnings for the first
quarter of 2007 of $4.5 million, or $0.15 per share, compared
with earnings in the same quarter of 2006 of $1.6 million, or
$0.06 per share. Earnings for the twelve months ended March
31, 2007 were $42.2 million, or $1.44 per share. This compares
to earnings of $25.6 million, or $0.99 per share, for the
twelve months ended March 31, 2006. The Company issued
approximately 3.8 million shares of common stock in June of
2006 which caused a dilutive effect to earnings per share of
$0.02 and $0.21 for the first quarter and twelve-month
periods, respectively.
-- On a segment basis, electric operations, which includes our
water operations, contributed $2.8 million in net income for
the first quarter, compared to $2.0 million in 2006. The gas
operations, which were acquired on June 1, 2006, contributed
$1.7 million to the quarter. On a twelve month ended basis,
net income from electric operations was $41.7 million, while
income from the ten months of gas operations was $0.7 million.
-- The increase in net income for the quarter was primarily
driven by increased electric segment revenues of $14.3
million, or 17.2 percent, as compared to the first quarter of
2006, primarily due to the effect of our Missouri rate
increase, which was effective January 1, 2007. This increase
in revenues was partially offset by increased costs, primarily
increases in fuel and purchased power costs of $4.6 million,
maintenance costs of $5.2 million and depreciation costs of
$3.0 million. The allowance for funds used during construction
(AFUDC) positively impacted earnings by $1.5 million, but was
partially offset by higher short term debt costs of $0.7
million.
-- The electric maintenance cost increase of $5.2 million noted
above was mostly due to the impact of the January 2007 ice
storm. Costs associated with the restoration effort due to the
ice storm were approximately $29.0 million, of which $18.0
million was capitalized as additions to the Company's utility
plant. Approximately $4.4 million was recorded as maintenance
expense in the first quarter and approximately $6.5 million
was deferred as a regulatory asset as the Company believes it
is probable that these costs will be recoverable in future
electric rate cases.
THE EMPIRE DISTRICT ELECTRIC COMPANY
SEGMENT FINANCIAL HIGHLIGHTS
(in 000's except per share information, certain segment amounts
exclude eliminations)
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Quarter 1 2007
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Electric Gas Other Consolidated
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Revenues $97,361 $27,590 $1,090 $125,940
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Fuel & Purchase Power Exp. 45,442 18,722 - 64,164
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Other Operating Expenses 42,801 6,263 928 49,892
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Operating Income 9,118 2,605 162 11,884
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Net Income (Loss) from
Continuing Operations 2,843 1,663 (6) 4,500
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Net (Loss) from Discontinued
Operations - - - -
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Net Income (Loss) $2,843 $1,663 $(6) $4,500
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Earnings Per Weighted-Average
Share, Common and Diluted $0.15
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THE EMPIRE DISTRICT ELECTRIC COMPANY
SEGMENT FINANCIAL HIGHLIGHTS
(in 000's except per share information, certain segment amounts
exclude eliminations)
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Quarter 1 2006
- ----------------------------------------------------------------------
Electric Gas Other Consolidated
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Revenues $83,087 $- $984 $83,983
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Fuel & Purchase Power Exp. 40,807 - - 40,807
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Other Operating Expenses 33,048 - 923 33,882
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Operating Income 9,232 - 61 9,294
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Net Income (Loss) from Continuing
Operations 2,050 - 32 2,081
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Net (Loss) from Discontinued
Operations - - (469) (469)
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Net Income (Loss) $2,050 $- $(437) $1,612
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Earnings Per Weighted-Average Share,
Common and Diluted $0.06
- ----------------------------------------------------------------------
Electric Earnings
Increased electric rates, from the effect of the Missouri rate
increase, increased revenues by an estimated $5.9 million for the
first quarter compared to the same quarter in the prior year. Revenues
also increased an estimated $2.8 million as a result of continued
strong customer growth. The increases to electric revenues were
positively impacted by the effect of weather for this quarter compared
to last year by an estimated $3.6 million.
Total electric fuel and purchased power costs for the quarter
increased by $4.6 million, or 11.4 percent, compared to the first
quarter of last year. Other operating and maintenance expenses
increased due primarily to the $4.4 million impact of the January 2007
ice storm and a $3.0 million increase in depreciation and
amortization, reflecting the regulatory amortization granted in our
last rate case.
Gas Earnings
Gas operation revenues for the first quarter ended March 31, 2007
were $27.6 million while the cost of natural gas sold by the gas
operation in the quarter was $18.7 million. The gas operation recently
concluded its first full winter heating season which is defined as the
months of November through March.
Earnings Conference Call
Bill Gipson, President and CEO, will host a conference call
Friday, April 27, 2007, at 1:00 p.m. Eastern Time to discuss earnings
for the third quarter and twelve months ended March 31, 2007. To phone
in to the conference call, parties in the United States should dial
1-800-240-4186, 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 1-800-405-2236 and entering passcode # 11088721.
Forward-looking and other material information may be discussed during
the conference call.
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.
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