ST. LOUIS, April 27 /PRNewswire-FirstCall/ -- The Laclede Group, Inc. today released earnings results for the second quarter of its fiscal year 2007 and declared a quarterly dividend of 38 1/2 cents per share on its common stock, payable July 2, 2007, to shareholders of record on June 11, 2007.
Consolidated earnings for the quarter ended March 31, 2007 were $20.8 million, which essentially equaled earnings of $20.9 million reported for the same period last year. Diluted earnings per share were $.97 for the second quarter this year compared to $.98 per share for the quarter ended March 31, 2006.
Quarterly earnings reported by Laclede Group's core subsidiary, Laclede Gas Company, Missouri's largest natural gas distribution utility, were $20.7 million, up $1.7 million compared to the same quarter last year. Results improved primarily due to increased earnings on sales of natural gas to entities outside of the traditional utility service area and higher Infrastructure System Replacement Surcharge revenues.
Laclede Energy Resources, Inc. (LER), Laclede Group's non-regulated natural gas commodity service provider, posted earnings totaling $3.3 million, which were approximately $2.2 million below the same period last year. While LER has continued to report year-over-year growth in sales volumes, margins this year were reduced as volatility in Gulf Coast markets stabilized from the unprecedented levels a year ago.
The results of SM&P Utility Resources, Inc., Laclede Group's non-regulated underground facility locating and marking service business, improved $.4 million compared with the same period last year. The improvement is primarily attributable to the effect of settlement costs associated with employment-related litigation recorded during the same period last year, which was partially offset by higher operating expenses.
Laclede Group's consolidated net income for the six-month period ended March 31, 2007 was $39.9 million, compared to $47.1 million for the same period last year. Diluted earnings per share for the six-month period were $1.86 compared to $2.22 reported for the same period last year.
The decrease in the six-month consolidated earnings is largely attributable to lower margins on sales by LER, and by Laclede Gas Company to customers outside of the traditional utility service area, with earnings declining $3.8 million and $2.8 million, respectively. Laclede Gas also experienced higher operating and depreciation expenses during the period. These factors were partially offset by increased sales volumes of natural gas made to customers both in and outside the utility's service area. SM&P's results for the same period declined $.5 million primarily due to the aforementioned factors.
The Laclede Group's earnings are seasonal in nature and are typically concentrated in the November through April period, which generally corresponds with the heating season for Laclede Gas Company, its largest subsidiary.
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 June 30, 2007, to shareholders of record June 11, 2007.
For further details concerning The Laclede Group's second quarter results, see the accompanying unaudited Statements of Consolidated Income.
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 December 31, 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 Six Months Ended
March 31, March 31,
2007 2006 2007 2006
OPERATING REVENUES
Regulated
Gas distribution $ 493,593 $ 489,283 $ 842,081 $ 900,684
Non-Regulated
Services 30,134 30,559 66,563 66,017
Gas marketing 175,850 187,733 329,317 429,065
Other 1,257 1,205 2,434 2,249
Total operating
revenues 700,834 708,780 1,240,395 1,398,015
OPERATING EXPENSES
Regulated
Natural and propane
gas 373,576 371,388 625,099 683,427
Other operation
expenses 36,816 37,764 70,496 70,869
Maintenance 6,060 5,267 11,658 10,255
Depreciation and
amortization 8,568 8,178 17,065 14,261
Taxes, other than
income taxes 28,348 29,258 47,107 48,897
Total regulated
operating
expenses 453,368 451,855 771,425 827,709
Non-Regulated
Services 34,753 35,991 71,114 69,910
Gas marketing 170,881 178,872 318,549 411,346
Other 1,096 851 2,173 1,702
Total operating
expenses 660,098 667,569 1,163,261 1,310,667
Operating Income 40,736 41,211 77,134 87,348
Other Income and (Income
Deductions) - Net 1,071 1,179 4,374 2,464
Interest Charges:
Interest on long-term 5,625 5,643 11,251 11,286
debt
Interest on long-term 893 893 1,786 1,786
debt to unconsolidated
affiliate trust
Other interest charges 2,940 3,041 6,374 5,164
Total interest
charges 9,458 9,577 19,411 18,236
Income Before Income
Taxes 32,349 32,813 62,097 71,576
Income Tax Expense 11,519 11,871 22,168 24,454
Net Income 20,830 20,942 39,929 47,122
Dividends on Redeemable
Preferred Stock -
Laclede Gas 11 13 23 25
Net Income Applicable to
Common Stock $ 20,819 $ 20,929 $ 39,906 $ 47,097
Average Number of Common 21,445 21,231 21,413 21,211
Shares Outstanding
Basic Earnings Per
Share of Common Stock $ 0.97 $ 0.99 $ 1.86 $ 2.22
Diluted Earnings Per
Share of Common Stock $ 0.97 $ 0.98 $ 1.86 $ 2.22
