Exhibit 99.1
The Empire District Electric Company
Earnings Report and Declaration of Dividends
JOPLIN, Mo.--(BUSINESS WIRE)--July 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 September 15, 2007, to holders of record as of September 1, 2007.
The Company, an operator of regulated electric, gas and water utilities,
announced today the following results for the quarter and 12-month period ended
June 30, 2007:
Second Quarter Highlights
-- The Company reported consolidated earnings for the second quarter of
2007 of $5.8 million, or $0.19 per share, compared with earnings in
the same quarter of 2006 of $7.1 million, or $0.27 per share. Earnings
for the 12 months ended June 30, 2007 were $40.9 million, or $1.35 per
share. This compares to earnings of $29.6 million, or $1.13 per share,
for the 12 months ended June 30, 2006. The issuance of shares in June
of 2006 reduced earnings per share by an estimated $0.03 and $0.19 for
the second quarter and 12-month periods ending June 30, 2007,
respectively.
-- Riverton Unit 12, a Siemens V84.3A2 combustion turbine constructed at
the Riverton Power Plant, was declared available for commercial
operation on April 10. The 148-megawatt unit, which is fueled by
natural gas, is expected to be used primarily during peak demand
conditions. The investment in the generation facility, on-site
transmission and substation facilities totaled approximately $49
million.
-- Empire District Gas completed its first full year of operations since
its purchase from Aquila on June 1, 2006.
-- The Company signed a 20-year purchase power agreement with Horizon
Wind Energy of Houston, Texas in June. The Company expects to purchase
100 megawatts of energy, or approximately 350,000 megawatt-hours
annually, from this source beginning in January of 2009.
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 Ending June 30, 2007
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Electric Gas Other Consolidated
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Revenues $97,984 $8,438 $1,219 $107,542
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Fuel & Purchase Power Exp. 41,891 4,722 -- 46,613
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Other Operating Expenses 42,234 3,619 1,067 46,821
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Operating Income (Loss) 13,859 97 152 14,108
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Net Income (Loss) from
Continuing Operations 6,592 (736) (22) 5,834
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Net (Loss) from Discontinued
Operations -- -- -- --
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Net Income (Loss) $6,592 $(736) $(22) $5,834
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Earnings Per Weighted-
Average Share, Common and
Diluted $0.19
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THE EMPIRE DISTRICT ELECTRIC COMPANY
SEGMENT FINANCIAL HIGHLIGHTS
(in 000's except per share information, certain segment amounts
exclude eliminations)
- ----------------------------------------------------------------------
Quarter Ending June 30, 2006
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Electric Gas(a) Other Consolidated
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Revenues $89,170 $1,627 $1,041 $91,733
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Fuel & Purchase Power Exp. 36,989 737 -- 37,726
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Other Operating Expenses 36,777 938 958 38,568
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Operating Income (Loss) 15,404 (48) 83 15,439
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Net Income (Loss) from
Continuing Operations 7,753 (369) 53 7,437
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Net (Loss) from Discontinued
Operations -- -- (320) (320)
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Net Income (Loss) $7,753 $(369) $(267) $7,117
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Earnings Per Weighted-
Average Share, Common and
Diluted $0.27
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(a) Includes only one month of operation
Electric Results
New electric rates, which went into effect on January 1, 2007 for Missouri
electric customers, increased revenues by an estimated $6.6 million for the
second quarter compared to the same quarter in the prior year. Revenues also
increased an estimated $2.3 million as a result of continued strong customer
growth. The increases to electric revenues were slightly offset by the effect of
weather and other factors for this quarter compared to last year's quarter by an
estimated $0.1 million.
Total electric fuel and purchased power costs for the quarter increased by
$4.9 million, or 13.3 percent, compared to the second quarter of last year.
Natural gas and coal prices both increased slightly but were offset by lower
volumes resulting in a $0.6 million decrease in total electric fuel. However,
purchased power costs increased $5.5 million which was mainly attributable to
reduced plant availability at the Asbury and Iatan plants compared to 2006.
Other operating and maintenance expenses increased approximately $2.7 million
due to small increases in several areas such as customer accounts, pension,
healthcare, and distribution expenses. Depreciation and amortization increased
$3.3 million, reflecting the regulatory amortization granted in our last
Missouri electric rate case. Operating expenses also include income and other
taxes which were lower this quarter compared to 2006 by $0.5 million.
Gas Results
Revenues from gas operations for the second quarter ended June 30, 2007
were $8.4 million and the cost of natural gas was $4.7 million. Quarterly
results are not comparable to last year as the 2006 quarter included only one
month of operation. Due to the seasonality of the gas operations, considerably
lower volumes and ultimately lower earnings are expected during the second and
third quarters of our fiscal year.
Earnings Conference Call
Bill Gipson, President and CEO, will host a conference call Friday, July
27, 2007, at 1:00 p.m. Eastern Time to discuss earnings for the second quarter
and 12 months ended June 30, 2007. To phone in to the conference call, parties
in the United States should dial 1-800-366-3908, 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 11093842#. 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