Press Release
The Laclede Group Announces Fiscal 2004 Earnings
ST. LOUIS, Oct. 28 -- The Laclede Group today released the earnings results for its fiscal year 2004, the 12-month period ended September 30.
Fiscal 2004 earnings were $36.1 million, an increase of $1.5 million, or approximately 4%, over earnings reported for fiscal 2003. Earnings per share were $1.82 per share for both periods as a result of higher average shares outstanding this year, largely due to the sale of 1.725 million shares of common stock in May 2004.
The majority of Group's earnings came from its core regulated subsidiary, Laclede Gas Company. The utility had lower earnings this year compared to last year reflecting lower sales of natural gas due to warmer weather, increased operating expenses including a higher level of uncollectible accounts, and the income recorded in fiscal 2003 related to the utility's management of its annual gas supply costs. Offsetting these factors, however, were an increase in earnings from off-system sales and capacity release and the receipt of a non-operating benefit related to the Company's interest as a policyholder in the sale of a mutual insurance company. Importantly, heating season temperatures in Laclede Gas Company's service area during fiscal 2004 were 15% warmer than in fiscal 2003 and 14% warmer than normal. The warmer weather, however, did not impact the utility's earnings as significantly as it has historically due to the full-year effect of the utility's rate design implemented in November 2002 that lessens the impact of weather volatility on Laclede Gas and its customers.
The results of SM&P Utility Resources, Inc., The Laclede Group's non- regulated subsidiary specializing in underground facilities locating and marking, improved significantly in fiscal 2004 compared with the prior year. SM&P's improvement reflects the return of a significant portion of business with two large customers as well as the attainment of new business in both existing and new markets.
Laclede Energy Resources, Inc., The Laclede Group's non-utility gas marketing subsidiary, also produced good results in fiscal 2004 with a slight improvement in earnings over the previous year.
For further details concerning The Laclede Group's fiscal 2004 results, see the accompanying unaudited Statements of Consolidated Income. The Group's Annual Report to Shareholders for fiscal 2004 will be distributed in December.
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, 2004, filed with the
Securities and Exchange Commission.
UNAUDITED
STATEMENTS OF CONSOLIDATED INCOME
The Laclede Group, Inc.
(Thousands, Except Per Share Amounts)
Three Months Ended Twelve Months Ended
September 30, September 30,
2004 2003 2004 2003
Operating Revenues:
Regulated
Gas distribution $84,787 $85,944 $868,905 $774,772
Non-Regulated
Services 34,468 24,754 104,239 100,168
Gas marketing 77,390 44,958 270,328 163,861
Other 1,023 5,729 6,848 11,529
Total operating revenues 197,668 161,385 1,250,320 1,050,330
Operating Expenses:
Regulated
Natural and propane gas 43,277 41,688 575,691 483,742
Other operation expenses 30,894 30,466 121,596 118,550
Maintenance 5,036 4,782 18,705 18,759
Depreciation and
amortization 5,270 5,561 22,385 22,229
Taxes, other than income
taxes 8,330 7,842 60,077 56,102
Total regulated operating
expenses 92,807 90,339 798,454 699,382
Non-Regulated
Services 30,043 23,427 99,511 102,093
Gas marketing 76,726 43,877 265,394 159,105
Other 939 5,346 6,400 10,615
Total operating expenses 200,515 162,989 1,169,759 971,195
Operating Income (Loss) (2,847) (1,604) 80,561 79,135
Other Income and (Income
Deductions) - Net 179 76 3,581 1,050
Interest Charges:
Interest on long-term debt 6,174 4,814 22,010 20,169
Interest on long-term debt to
unconsolidated affiliate
trust 890 866 3,516 2,743
Other interest charges 585 862 3,234 3,974
Total interest charges 7,649 6,542 28,760 26,886
Income (Loss) Before Income Taxes (10,317) (8,070) 55,382 53,299
Income Tax Expense (Benefit) (4,510) (3,983) 19,264 18,652
Net Income (Loss) (5,807) (4,087) 36,118 34,647
Dividends on Redeemable Preferred
Stock - Laclede Gas 15 15 62 62
Net Income (Loss) Applicable to
Common Stock $(5,822) $(4,102) $36,056 $34,585
Average Number of Common Shares
Outstanding 20,980 19,080 19,783 19,022
Basic Earnings (Loss) Per Share of
Common Stock $(0.28) $(0.21) $1.82 $1.82
Diluted Earnings (Loss) Per Share
of Common Stock $(0.28) $(0.21) $1.82 $1.82
Certain prior-period amounts have been reclassified to conform to current-
year presentation.