ST. LOUIS, July 28 /PRNewswire-FirstCall/ -- The Laclede Group today released its third quarter and fiscal year-to-date earnings report.
Quarter Ended June 30, 2006
Net income for the quarter ended June 30, 2006, was $2.7 million this year, or $3.4 million lower than the same period last year. On an earnings- per-share basis, third quarter earnings for fiscal 2006 were $.13 per share, compared to $.29 per share last year.
Results from The Laclede Group's core subsidiary, Laclede Gas Company, Missouri's largest natural gas distribution utility, were down $5.7 million this year compared to the third quarter of fiscal 2005. Utility results were reduced by lower system sales volumes, decreased income from sales of natural gas and upstream pipeline capacity outside the utility's service area, and higher operating and depreciation expenses. These factors were partially offset by the net benefit of rate changes implemented at the utility October 1, 2005.
Net income for the third quarter of fiscal year 2006 for SM&P Utility Resources, Laclede Group's unregulated underground facility locating and marking business, declined by $.4 million compared with the same period last year. The reduction in net income resulted primarily from higher than anticipated operating expenses, including those associated with the startup of new business in existing markets.
Laclede Energy Resources, Laclede Group's other principal unregulated subsidiary, offers natural gas commodity services to customers within and outside of the St. Louis area. Laclede Energy Resources posted a $2.7 million earnings increase over the same period last year as a result of higher margins caused by increased price volatility and regional price differences, as well as higher wholesale sales volumes.
Fiscal Year Results at June 30, 2006
The Laclede Group posted net income for the nine-month period ended June 30, 2006, of $49.8 million, a $4.7 million increase over the same period last year. Earnings per share for the nine-month period increased to $2.35 compared to $2.14 for the same period last year.
The increase in net income during the nine-month period reflects significantly better results at Laclede Energy Resources, which resulted largely from higher margins due to increased price volatility and regional price differences subsequent to the 2005 Gulf Coast hurricanes, as well as higher sales volumes. Laclede Gas Company's results for the nine months ended June 2006 declined due to higher operating and depreciation expenses and lower system sales volumes. These increased expenses were partially offset by the October 1, 2005 rate changes and increased income from the sale of natural gas and upstream pipeline capacity to entities outside of its traditional service area. SM&P's results declined primarily due to a $2.5 million pre-tax charge associated with a previously reported agreement to settle a collective action lawsuit regarding certain employment-related claims, and higher than anticipated operating expenses, including those associated with the startup of new business in existing markets.
Laclede Gas Company, which contributes the majority of The Laclede Group's consolidated earnings, has seasonal earnings that are typically concentrated in the colder months of the year. While SM&P, Laclede Energy Resources and other non-utility operations provide some offset to this seasonal pattern, The Laclede Group historically has experienced losses during its fourth quarter, July through September.
Dividends
The Laclede Group today declared a quarterly dividend of 35 1/2 cents per share on its common stock, payable October 2, 2006, to shareholders of record on September 11, 2006.
In addition, Laclede Gas Company declared a quarterly dividend of 31 1/4 cents per share on Preferred Stock, Series B, and a quarterly dividend of 28 1/2 cents per share on Preferred Stock, Series C, payable September 30, 2006, to shareholders of record September 11, 2006.
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 June 30, 2006, filed with the Securities and Exchange Commission.
UNAUDITED
STATEMENTS OF CONSOLIDATED INCOME
THE LACLEDE GROUP, INC.
(Thousands, Except Per Share Amounts)
Three Months Ended Nine Months Ended
June 30, June 30,
2006 2005 2006 2005
OPERATING REVENUES
Regulated
Gas distribution $148,690 $162,371 $1,049,374 $888,620
Non-Regulated
Services 50,417 45,118 116,434 96,910
Gas marketing 130,372 103,008 559,437 337,794
Other 1,063 830 3,312 7,043
Total operating
revenues 330,542 311,327 1,728,557 1,330,367
OPERATING EXPENSES
Regulated
Natural and
propane gas 90,305 102,995 773,732 630,647
Other operation
expenses 31,029 27,896 101,898 93,496
Maintenance 5,480 5,160 15,735 14,054
Depreciation and
amortization 8,275 5,947 22,536 16,919
Taxes, other than
income taxes 14,014 13,198 62,911 55,498
Total regulated
operating
expenses 149,103 155,196 976,812 810,614
Non-Regulated
Services 44,153 38,195 114,063 91,370
Gas marketing 124,599 101,454 535,945 330,945
Other 1,406 986 3,108 7,003
Total operating
expenses 319,261 295,831 1,629,928 1,239,932
Operating Income 11,281 15,496 98,629 90,435
Other Income and
(Income Deductions)
- Net 1,385 822 3,849 2,302
Interest Charges:
Interest on long-term
debt 5,417 5,642 16,703 17,193
Interest on long-term
debt to unconsolidated
affiliate trust 894 894 2,680 2,680
Other interest charges 2,589 883 7,753 3,171
Total interest
charges 8,900 7,419 27,136 23,044
Income Before Income
Taxes 3,766 8,899 75,342 69,693
Income Tax Expense 1,026 2,788 25,480 24,492
Net Income 2,740 6,111 49,862 45,201
Dividends on Redeemable
Preferred Stock -
Laclede Gas 12 13 37 43
Net Income Applicable
to Common Stock $2,728 $6,098 $49,825 $45,158
Average Number of
Common Shares
Outstanding 21,269 21,103 21,230 21,060
Basic Earnings Per
Share of Common
Stock $0.13 $0.29 $2.35 $2.14
Diluted Earnings Per
Share of Common Stock $0.13 $0.29 $2.34 $2.14
