EX-99.1 2 exh99p1.txt Exhibit 99.1 NEWS RELEASE THE LACLEDE GROUP ------------------------------------------------------------------------------ 720 OLIVE STREET, ST. LOUIS, MO 63101 CONTACT: Richard N. Hargraves (314) 342-0652 FOR IMMEDIATE RELEASE THE LACLEDE GROUP ANNOUNCES FISCAL 2004 EARNINGS ST. LOUIS, MO, Oct. 28, 2004 -- The Laclede Group (NYSE: LG) 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.