ST. LOUIS, July 27 /PRNewswire-FirstCall/ -- The Laclede Group, Inc. today released earnings results for the third quarter of its fiscal year 2007 and declared a quarterly dividend of 36 1/2 cents per share on its common stock, payable October 1, 2007, to shareholders of record on September 11, 2007.
Consolidated earnings for the quarter ended June 30, 2007 were $9.3 million, compared with $2.7 million for the same period last year, as each of Laclede Group's business segments reported improved quarterly results. Diluted earnings per share were $.43 for the third quarter this year compared to $.13 for the quarter ended June 30, 2006.
Quarterly results reported by Laclede Group's core subsidiary, Laclede Gas Company, Missouri's largest natural gas distribution utility, improved by $5.0 million compared to the same quarter last year, primarily due to higher utility sales volumes resulting from an unseasonably cold weather pattern in April, lower bad debt expense, and increased earnings on sales of natural gas and upstream pipeline capacity to entities outside of the traditional utility service area.
Net income for SM&P Utility Resources, Inc., Laclede Group's non-regulated underground facility locating and marking service business, increased $1.0 million compared to the same quarter last year, primarily attributable to new business in existing markets and lower operating expenses.
Laclede Energy Resources, Inc. (LER), Laclede Group's non-regulated gas commodity service provider, posted earnings for the quarter totaling $3.9 million, an increase of $.2 million compared to the same period last year. LER achieved increased sales volume this year over last. However, the beneficial impact of higher sales was largely offset by reduced margins from the unprecedented levels a year ago.
Laclede Group's consolidated income for the nine-month period ended June 30, 2007 was $49.2 million, compared to $49.8 million for the same period last year. Diluted earnings per share for the nine-month period were $2.29, compared to $2.34 reported for the same period last year.
Laclede Gas' net income for the nine months ended June 30 increased $2.1 million, primarily due to the effect of higher utility sales volumes primarily attributable to colder weather, lower bad debt expense and higher Infrastructure System Replacement Surcharge revenues. These factors were partially offset by higher operating and depreciation expenses this year.
SM&P's results for the same period improved $.6 million, primarily attributable to the effect of settlement costs associated with employment- related litigation recorded during the same period last year and the addition of new business in existing markets this year, which was partially offset by higher operating expenses this year.
LER has continued to report year-over-year growth in sales volumes. However, as previously reported, margins this year were reduced as volatility in Gulf Coast markets stabilized. The decrease in the nine-month consolidated earnings reflects a $3.6 million decline in LER's earnings that was largely offset by improved results reported by Laclede Gas and SM&P as noted above.
Laclede Group's earnings are generally seasonal in nature and typically correspond 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 on September 30, 2007, to shareholders of record on September 11, 2007.
For further details concerning Laclede Group's third 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 March 31, 2007, 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,
2007 2006 2007 2006
OPERATING REVENUES
Regulated
Gas distribution $185,696 $148,690 $1,027,777 $1,049,374
Non-Regulated Services 51,707 50,417 118,270 116,434
Gas marketing 218,771 130,372 548,088 559,437
Other 1,753 1,063 4,187 3,312
Total operating
revenues 457,927 330,542 1,698,322 1,728,557
OPERATING EXPENSES
Regulated
Natural and propane gas 121,490 90,305 746,589 773,732
Other operation
expenses 29,283 31,029 99,779 101,898
Maintenance 5,830 5,480 17,488 15,735
Depreciation and
amortization 8,565 8,275 25,630 22,536
Taxes, other than
income taxes 13,360 14,014 60,467 62,911
Total regulated
operating expenses 178,528 149,103 949,953 976,812
Non-Regulated
Services 43,806 44,153 114,920 114,063
Gas marketing 212,948 124,599 531,497 535,945
Other 1,305 1,406 3,478 3,108
Total operating
expenses 436,587 319,261 1,599,848 1,629,928
Operating Income 21,340 11,281 98,474 98,629
Other Income and (Income
Deductions) - Net 1,029 1,385 5,403 3,849
Interest Charges:
Interest on long-term debt 5,626 5,417 16,877 16,703
Interest on long-term debt
to unconsolidated
affiliate trust 894 894 2,680 2,680
Other interest charges 1,825 2,589 8,199 7,753
Total interest charges 8,345 8,900 27,756 27,136
Income Before Income Taxes 14,024 3,766 76,121 75,342
Income Tax Expense 4,752 1,026 26,920 25,480
Net Income 9,272 2,740 49,201 49,862
Dividends on Redeemable
Preferred Stock - Laclede Gas 10 12 33 37
Net Income Applicable to
Common Stock $9,262 $2,728 $49,168 $49,825
Average Number of
Common Shares Outstanding 21,478 21,269 21,434 21,230
Basic Earnings Per Share of
Common Stock $0.43 $0.13 $2.29 $2.35
Diluted Earnings Per Share
of Common Stock $0.43 $0.13 $2.29 $2.34
