Missouri | 1-16681 | 74-2976504 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
• | historical financial statements of MGE, in accordance with Rule 3-05 of Regulation S-X , included as Exhibit 99.1, which is incorporated herein by reference; and |
• | pro forma financial information of Laclede Group and MGE in accordance with Article 11 of Regulation S-X giving effect to certain pro forma events relating to Laclede Group’s pending acquisition of MGE, included as Exhibit 99.2 hereto, which is incorporated herein by reference. |
(a) | Financial Statements of Businesses Acquired. |
(b) | Pro Forma Financial Information. |
(d) | Exhibits. |
99.1 | Unaudited Interim Financial Statements of Missouri Gas Energy as of June 30, 2013 and for the three and six months ended June 30, 2013 and 2012 | |
99.2 | Unaudited Pro Forma Combined Condensed Statements of Income for the nine months ended June 30, 2013 and for the year ended September 30, 2012 and Unaudited Pro Forma Combined Condensed Balance Sheets as of June 30, 2013 and September 30, 2012, of The Laclede Group, Inc. and Missouri Gas Energy |
THE LACLEDE GROUP, INC. | |||
Date: August 6, 2013 | By: | /s/ M. D. Waltermire | |
M. D. Waltermire Executive Vice President, Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Unaudited Interim Financial Statements of Missouri Gas Energy as of June 30, 2013 and for the three and six months ended June 30, 2013 and 2012 | |
99.2 | Unaudited Pro Forma Combined Condensed Statements of Income for the nine months ended June 30, 2013 and for the year ended September 30, 2012 and Unaudited Pro Forma Combined Condensed Balance Sheets as of June 30, 2013 and September 30, 2012, of The Laclede Group, Inc. and Missouri Gas Energy |
Financial Statements (unaudited): | Page | ||||
Balance Sheets - June 30, 2013 and December 31, 2012 | 5 | ||||
Statements of Operations - Three Months Ended June 30, 2013 and 2012, Six Months Ended June 30, 2013, Period from Acquisition (March 26, 2012) to June 30, 2012, and the Period from January 1, 2012 to March 25, 2012 | 7 | ||||
Statements of Comprehensive Income (Loss) - Three Months Ended June 30, 2013 and 2012, Six Months Ended June 30, 2013, Period from Acquisition (March 26, 2012) to June 30, 2012, and the Period from January 1, 2012 to March 25, 2012 | 9 | ||||
Statement of Parent's Equity in Division - Six Months Ended June 30, 2013 | 11 | ||||
Statements of Cash Flows - Six Months Ended June 30, 2013, Period from Acquisition (March 26, 2012) to June 30, 2012, and the Period from January 1, 2012 to March 25, 2012 | 12 | ||||
Notes to Financial Statements | 13 |
AOCI | accumulated other comprehensive income (loss) | ||
ETE | Energy Transfer Equity, L.P. | ||
ETP | Energy Transfer Partners, L.P., a subsidiary of ETE | ||
GAAP | accounting principles generally accepted in the United States | ||
MPSC | Missouri Public Service Commission | ||
MGE | Missouri Gas Energy | ||
NEG | New England Gas Company |
Successor | |||||||
June 30, 2013 | December 31, 2012 | ||||||
ASSETS | |||||||
Utility plant | $ | 661,339 | $ | 649,953 | |||
Less - Accumulated depreciation and amortization | (27,977 | ) | (15,793 | ) | |||
Construction work in progress | 4,236 | 4,152 | |||||
Net utility plant | 637,598 | 638,312 | |||||
Goodwill | 132,604 | 132,604 | |||||
Other investments | 3,334 | 3,334 | |||||
Other property and investments | 135,938 | 135,938 | |||||
Current assets: | |||||||
Cash and cash equivalents | 8,065 | 16,641 | |||||
Accounts receivable: | |||||||
Utility | 30,199 | 50,363 | |||||
Utility unbilled revenues | 10,883 | 33,595 | |||||
Associated companies | 8,825 | 14,477 | |||||
Other | 4,617 | 4,644 | |||||
Allowance for doubtful accounts | (1,300 | ) | (500 | ) | |||
Inventories: | |||||||
Natural gas stored underground | 37,289 | 49,083 | |||||
Materials and supplies at average cost | 4,726 | 3,780 | |||||
Prepayments and other | 483 | 1,437 | |||||
Total current assets | 103,787 | 173,520 | |||||
Deferred charges: | |||||||
Regulatory assets | 59,298 | 62,523 | |||||
Deferred purchased gas costs | 5,178 | 39,039 | |||||
Other | 9,467 | 7,560 | |||||
Total deferred charges | 73,943 | 109,122 | |||||
Total assets | $ | 951,266 | $ | 1,056,892 |
Successor | |||||||
June 30, 2013 | December 31, 2012 | ||||||
CAPITALIZATION AND LIABILITIES | |||||||
Capitalization: | |||||||
Parent's equity in division | $ | 620,391 | $ | 700,544 | |||
Total capitalization | 620,391 | 700,544 | |||||
Current liabilities: | |||||||
Accounts payable | 26,138 | 32,154 | |||||
Advanced customer billings | 1,626 | 23,536 | |||||
Wages and compensation accrued | 8,332 | 6,320 | |||||
Derivative instrument liability | 2,971 | 8,142 | |||||
Customer deposits | 8,341 | 8,317 | |||||
Taxes accrued | 18,468 | 15,855 | |||||
Deferred income taxes | 10,189 | 10,626 | |||||
Other | 774 | 1,137 | |||||
Total current liabilities | 76,839 | 106,087 | |||||
Deferred credits and other liabilities: | |||||||
Deferred income taxes | 172,759 | 167,000 | |||||
Pension and postretirement benefit costs | 58,880 | 64,389 | |||||
Derivative instrument liability | 1,254 | — | |||||
Regulatory liabilities | 2,240 | 2,289 | |||||
Other | 18,903 | 16,583 | |||||
Total deferred credits and other liabilities | 254,036 | 250,261 | |||||
Commitments and contingencies (Note 10) | |||||||
Total capitalization and liabilities | $ | 951,266 | $ | 1,056,892 |
Successor | |||||||
Three Months | Three Months | ||||||
Ended | Ended | ||||||
June 30, | June 30, | ||||||
2013 | 2012 | ||||||
Operating revenues: | |||||||
Regulated gas distribution | $ | 93,985 | $ | 71,616 | |||
Other | 2,054 | 1,787 | |||||
Total operating revenues | 96,039 | 73,403 | |||||
Operating expenses: | |||||||
Natural gas | 40,726 | 20,767 | |||||
Other operation expenses | 26,483 | 24,717 | |||||
Maintenance | 4,624 | 4,298 | |||||
Depreciation and amortization | 7,601 | 7,406 | |||||
Taxes, other than income taxes | 8,528 | 6,969 | |||||
Total operating expenses | 87,962 | 64,157 | |||||
Operating income | 8,077 | 9,246 | |||||
Other income - net | (10 | ) | (83 | ) | |||
Interest income | 12 | 6 | |||||
Income before income taxes | 8,079 | 9,169 | |||||
Income tax expense | 3,129 | 3,880 | |||||
Net income | $ | 4,950 | $ | 5,289 |
Successor | Predecessor | |||||||||||
Six Months | Period from | Period from | ||||||||||
Ended | March 26 - | January 1 - | ||||||||||
June 30, | June 30, | March 25, | ||||||||||
2013 | 2012 | 2012 | ||||||||||
Operating revenues: | ||||||||||||
Regulated gas distribution | $ | 306,270 | $ | 77,903 | $ | 158,321 | ||||||
Other | 6,758 | 2,006 | 3,975 | |||||||||
Total operating revenues | 313,028 | 79,909 | 162,296 | |||||||||
Operating expenses: | ||||||||||||
Natural gas | 189,254 | 23,491 | 101,739 | |||||||||
Other operation expenses | 48,189 | 36,061 | 21,208 | |||||||||
Maintenance | 9,726 | 4,622 | 4,333 | |||||||||
Depreciation and amortization | 15,172 | 7,887 | 7,032 | |||||||||
Taxes, other than income taxes | 24,774 | 7,540 | 12,577 | |||||||||
Total operating expenses | 287,115 | 79,601 | 146,889 | |||||||||
Operating income | 25,913 | 308 | 15,407 | |||||||||
Other income and (expense) - net | 175 | (82 | ) | 54 | ||||||||
Interest income | 120 | 7 | 37 | |||||||||
Income before income taxes | 26,208 | 233 | 15,498 | |||||||||
Income tax expense | 10,147 | 1,236 | 6,001 | |||||||||
Net income (loss) | $ | 16,061 | $ | (1,003 | ) | $ | 9,497 |
Successor | |||||||
Three Months | Three Months | ||||||
Ended | Ended | ||||||
June 30, | June 30, | ||||||
2013 | 2012 | ||||||
Net income | $ | 4,950 | $ | 5,289 | |||
Other comprehensive income, before tax: | |||||||
Defined benefit pension and other | |||||||
postretirement benefit plans: | |||||||
Net actuarial gain arising during the period | 740 | — | |||||
Other comprehensive income, before tax: | 740 | — | |||||
Income tax expense related to items of | |||||||
other comprehensive income | (286 | ) | — | ||||
Other comprehensive income, net of tax | 454 | — | |||||
Comprehensive income | $ | 5,404 | $ | 5,289 |
Successor | Predecessor | |||||||||||
Six Months | Period from | |||||||||||
Ended | Acquisition (March | Period from | ||||||||||
June 30, | 26, 2012) to June 30, | January 1, 2012 to | ||||||||||
2013 | 2012) | March 25, 2012 | ||||||||||
Net income (loss) | $ | 16,061 | $ | (1,003 | ) | $ | 9,497 | |||||
Other comprehensive income, before tax: | ||||||||||||
Defined benefit pension and other | ||||||||||||
postretirement benefit plans: | ||||||||||||
Net actuarial gain arising during the period | 1,703 | — | 1,366 | |||||||||
Other comprehensive income, before tax: | 1,703 | — | 1,366 | |||||||||
Income tax expense related to items of | ||||||||||||
other comprehensive income | (572 | ) | — | (528 | ) | |||||||
Other comprehensive income, net of tax | 1,131 | — | 838 | |||||||||
Comprehensive income (loss) | $ | 17,192 | $ | (1,003 | ) | $ | 10,335 |
Parent’s | Total Parent’s | ||||||||||
Equity in | Equity in | ||||||||||
Division | AOCI | Division | |||||||||
Successor: | |||||||||||
Balance, January 1, 2013 | $ | 709,836 | $ | (9,292 | ) | $ | 700,544 | ||||
Other comprehensive income, net of tax | — | 1,131 | 1,131 | ||||||||
Net income | 16,061 | — | 16,061 | ||||||||
Net transactions with parent | (97,345 | ) | — | (97,345 | ) | ||||||
Balance, June 30, 2013 | $ | 628,552 | $ | (8,161 | ) | $ | 620,391 |
Successor | Predecessor | |||||||||||
Six Months | Period from | Period from | ||||||||||
Ended | March 26 - | January 1 - | ||||||||||
June 30, | June 30, | March 25, | ||||||||||
2013 | 2012 | 2012 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income | $ | 16,061 | $ | (1,003 | ) | $ | 9,497 | |||||
Reconciliation of net income to net cash | ||||||||||||
provided by operating activities: | ||||||||||||
Depreciation and amortization | 15,172 | 7,887 | 7,032 | |||||||||
Deferred income taxes | 4,751 | 4,965 | 6,837 | |||||||||
Change in assets and liabilities: | ||||||||||||
Accounts receivable | 20,991 | 16,667 | 7,913 | |||||||||
Accounts receivable - associated companies | 5,652 | (12,517 | ) | 19,382 | ||||||||
Accounts payable and advanced | ||||||||||||
customer billings | (27,128 | ) | 11,112 | (35,055 | ) | |||||||
Taxes accrued | 2,613 | 405 | (296 | ) | ||||||||
Natural gas stored underground | 11,794 | (10,380 | ) | 18,493 | ||||||||
Other assets and liabilities | 31,497 | 32,336 | 9,317 | |||||||||
Net changes in derivatives | (3,330 | ) | (20,097 | ) | (1,957 | ) | ||||||
Net change in pension and postretirement | 1,703 | — | 1,366 | |||||||||
Delayed customer billings | 22,712 | (3,806 | ) | 22,683 | ||||||||
Net cash flows provided by operating activities | 102,488 | 25,569 | 65,212 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Capital expenditures | (13,719 | ) | (7,470 | ) | (6,386 | ) | ||||||
Net cash flows used in investing activities | (13,719 | ) | (7,470 | ) | (6,386 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Net advances to parent | (97,345 | ) | (12,366 | ) | (55,561 | ) | ||||||
Other | — | (1,759 | ) | (3,090 | ) | |||||||
Net cash flows used in | ||||||||||||
financing activities | (97,345 | ) | (14,125 | ) | (58,651 | ) | ||||||
INCREASE (DECREASE) IN | ||||||||||||
CASH AND CASH EQUIVALENTS | (8,576 | ) | 3,974 | 175 | ||||||||
CASH AND CASH EQUIVALENTS, | ||||||||||||
beginning of period | 16,641 | 1,790 | 1,615 | |||||||||
CASH AND CASH EQUIVALENTS, | ||||||||||||
end of period | $ | 8,065 | $ | 5,764 | $ | 1,790 |
1. | Franchise and Sales Taxes |
2. | Subsequent Events |
1. | Description of Merger |
2. | Allocation of Consideration Transferred |
Cash and cash equivalents | $ | 1,790 | |
Other current assets | 143,504 | ||
Property and equipment | 629,453 | ||
Goodwill | 132,604 | ||
Other noncurrent assets | 80,450 | ||
Deferred income taxes | (168,524 | ) | |
Other liabilities | (215,654 | ) | |
Total purchase price | $ | 603,623 |
Successor | |||||||
Three Months | Three Months | ||||||
Ended | Ended | ||||||
June 30, | June 30, | ||||||
2013 | 2012 | ||||||
Allocations included in operating expenses: | |||||||
Service fee - 1.5% of net sales | $ | — | $ | 723 | |||
Royalty fee - 1% of net sales | — | 482 | |||||
Joint and common cost allocation | 1,399 | 1,176 | |||||
Total | $ | 1,399 | $ | 2,381 | |||
Allocations included in construction costs: | |||||||
Joint and common cost allocation | $ | — | $ | 360 |
Successor | Predecessor | |||||||||||
Period from | ||||||||||||
Acquisition | Period from | |||||||||||
Six Months | (March 26 - | January 1, | ||||||||||
Ended | 2012) to | 2012 to | ||||||||||
June 30, | June 30, | March 25, | ||||||||||
2013 | 2012) | 2012 | ||||||||||
Allocations included in operating expenses: | ||||||||||||
Service fee - 1.5% of net sales | $ | — | $ | 774 | $ | 756 | ||||||
Royalty fee - 1% of net sales | — | 516 | 504 | |||||||||
Joint and common cost allocation | 1,649 | 1,306 | 1,686 | |||||||||
Total | $ | 1,649 | $ | 2,596 | $ | 2,946 | ||||||
Allocations included in construction costs: | ||||||||||||
Joint and common cost allocation | $ | — | $ | 409 | $ | 638 |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||
Successor | Successor | ||||||||||||||
Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net periodic benefit cost: | |||||||||||||||
Service cost | $ | 838 | $ | 730 | $ | 87 | $ | 74 | |||||||
Interest cost | 1,606 | 1,681 | 232 | 252 | |||||||||||
Expected return on plan assets | (2,438 | ) | (2,239 | ) | (456 | ) | (442 | ) | |||||||
Actuarial loss (gain) amortization | 604 | 136 | |||||||||||||
610 | 172 | (1 | ) | (116 | ) | ||||||||||
Regulatory adjustment (1) | 1,890 | 2,328 | 1 | 116 | |||||||||||
Net periodic benefit cost | $ | 2,500 | $ | 2,500 | $ | — | $ | — |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | ||||||||||||||||||||||
Six Months Ended June 30, | Period from Acquisition (March 26, 2012) to June 30, | Period from January 1, 2012 to March 25, | Six Months Ended June 30, | Period from Acquisition March 26, 2012 to June 30, | Period from January 1, 2012 to March 25, | ||||||||||||||||||||
2013 | 2012) | 2012 | 2013 | 2012 | 2012 | ||||||||||||||||||||
Net periodic benefit cost: | |||||||||||||||||||||||||
Service cost | $ | 1,676 | $ | 791 | $ | 642 | $ | 174 | $ | 81 | $ | 69 | |||||||||||||
Interest cost | 3,212 | 1,821 | 1,558 | 463 | 273 | 249 | |||||||||||||||||||
Expected return on plan assets | (4,876 | ) | (2,426 | ) | (1,846 | ) | (912 | ) | (479 | ) | (386 | ) | |||||||||||||
Prior service cost (credit) amortization | — | 86 | — | — | |||||||||||||||||||||
Actuarial loss (gain) amortization | 1,208 | — | 1,789 | 272 | — | — | |||||||||||||||||||
1,220 | 186 | 2,229 | (3 | ) | (125 | ) | (68 | ) | |||||||||||||||||
Regulatory adjustment (1) | 3,780 | 2,332 | 253 | 3 | 125 | 657 | |||||||||||||||||||
Net periodic benefit cost | $ | 5,000 | $ | 2,518 | $ | 2,482 | $ | — | $ | — | $ | 589 |
(1) | MGE recovers certain qualified pension benefit plan and other postretirement benefit plan costs through rates charged to utility customers. Certain utility commissions require that the recovery of these costs be based on the Employee Retirement Income Security Act of 1974, as amended, or other utility commission specific guidelines. The difference between these regulatory-based amounts and the periodic benefit cost calculated pursuant to GAAP is deferred as a regulatory asset or liability and amortized to expense over periods in which this difference will be recovered in rates, as promulgated by the applicable utility commission. |
1. | Commodity Contracts |
2. | Summary Financial Statement Information |
Fair Value | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
Successor | Successor | ||||||||||||||
June 30, | December 31, | June 30, | December 31, | ||||||||||||
Balance Sheet Location | 2013 | 2012 | 2013 | 2012 | |||||||||||
Economic hedges: | |||||||||||||||
Commodity contracts: | |||||||||||||||
Natural gas price swaps: | |||||||||||||||
Deferred charges | $ | — | $ | 712 | $ | — | $ | 125 | |||||||
Derivative instrument liability | 788 | 822 | 5,013 | 8,964 | |||||||||||
Total | $ | 788 | $ | 1,534 | $ | 5,013 | $ | 9,089 |
Successor | |||||||
Three Months Ended June 30, | Three Months Ended June 30, | ||||||
2013 | 2012 | ||||||
Economic hedges: | |||||||
Commodity contracts: | |||||||
Change in fair value - decrease in deferred natural gas purchases | $ | 10,444 | $ | (20,097 | ) |
Successor | Predecessor | |||||||||||
Six-Months Ended June 30, 2013 | Period from Acquisition (March 26, 2012) to June 30, 2012) | Period from January 1, 2012 to March 25, 2012 | ||||||||||
Economic hedges: | ||||||||||||
Commodity contracts: | ||||||||||||
Change in fair value - decrease in | ||||||||||||
deferred natural gas purchases | $ | (3,330 | ) | $ | (20,097 | ) | $ | (1,957 | ) |
3. | Derivative Instrument Contingent Features |
1. | Environmental Matters |
2. | Environmental Remediation |
3. | Environmental Remediation Liabilities |
Successor | |||||||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
Current | $ | 285 | $ | 715 | |||
Noncurrent | 655 | 575 | |||||
Total environmental liabilities | $ | 940 | $ | 1,290 |
4. | Litigation and Other Claims |
5. | Other Commitments and Contingencies |
• | the audited financial statements of The Laclede Group, Inc. as of and for the year ended September 30, 2012 included in The Laclede Group, Inc.’s Form 10-K for the fiscal year then ended; |
• | the financial statements of The Laclede Group, Inc. as of and for the nine months ended June 30, 2013 (unaudited) included in The Laclede Group, Inc.’s Form 10-Q for the quarterly period ended June 30, 2013; |
• | the audited financial statements of MGE as of and for the period from March 26, 2012 to December 31, 2012, and the period from January 1, 2012 to March 25, 2012; and |
• | the financial statements of MGE as of and for the nine months ended June 30, 2013 (unaudited) |
• | directly attributable to the MGE acquisition; |
• | factually supportable; and |
• | with respect to the pro forma statements of income, expected to have a continuing impact on the combined results of Laclede Group and MGE. |
The Laclede Group, Inc. | Missouri Gas Energy | Pro Forma Adjustments Relating to the MGE Acquisition | Pro Forma Adjustments Relating to Financing | Note 3 | Pro Forma Combined | ||||||||||||||||||
(Thousands, Except Per Share Amounts) | |||||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||||
Gas Utility | $ | 735,726 | $ | 456,053 | $ | — | $ | — | $ | 1,191,779 | |||||||||||||
Gas Marketing and Other | 134,179 | — | — | — | 134,179 | ||||||||||||||||||
Total Operating Revenues | 869,905 | 456,053 | — | — | 1,325,958 | ||||||||||||||||||
Operating Expenses: | |||||||||||||||||||||||
Gas Utility | |||||||||||||||||||||||
Natural and propane gas | 410,189 | 272,259 | — | — | 682,448 | ||||||||||||||||||
Other operation and maintenance | 123,245 | 82,465 | — | — | 205,710 | ||||||||||||||||||
Depreciation and amortization | 33,742 | 22,709 | — | — | 56,451 | ||||||||||||||||||
Taxes, other than income taxes | 49,525 | 36,223 | — | — | 85,748 | ||||||||||||||||||
Total Gas Utility Operating Expenses | 616,701 | 413,656 | — | — | 1,030,357 | ||||||||||||||||||
Gas Marketing and Other | 146,988 | — | (7,196 | ) | — | A | 139,792 | ||||||||||||||||
Total Operating Expenses | 763,689 | 413,656 | (7,196 | ) | — | 1,170,149 | |||||||||||||||||
Operating Income | 106,216 | 42,397 | 7,196 | — | 155,809 | ||||||||||||||||||
Other Income and (Income Deductions) - Net | 2,024 | 122 | — | — | 2,146 | ||||||||||||||||||
Interest Charges | 19,590 | (245 | ) | (1,308 | ) | 11,813 | A, B | 29,850 | |||||||||||||||
Income Before Income Taxes | 88,650 | 42,764 | 8,504 | (11,813 | ) | 128,105 | |||||||||||||||||
Income Tax Expense | 26,256 | 17,581 | 3,257 | (4,524 | ) | C | 42,570 | ||||||||||||||||
Net Income | $ | 62,394 | $ | 25,183 | $ | 5,247 | $ | (7,289 | ) | $ | 85,535 | ||||||||||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 23,634 | 8,795 | (Notes 2 & 4) | 32,429 | |||||||||||||||||||
Diluted | 23,708 | 8,796 | (Notes 2 & 4) | 32,504 | |||||||||||||||||||
Basic Earnings Per Share of Common Stock | $ | 2.62 | $ | 2.63 | |||||||||||||||||||
Diluted Earnings Per Share of Common Stock | $ | 2.62 | $ | 2.62 |
The Laclede Group, Inc. | Missouri Gas Energy | Pro Forma Adjustments Relating to the MGE Acquisition | Pro Forma Adjustments Relating to Financing | Note 3 | Pro Forma Combined | ||||||||||||||||
(Thousands) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Utility Plant | $ | 1,567,296 | $ | 665,575 | $ | — | $ | — | $ | 2,232,871 | |||||||||||
Less: Accumulated depreciation and amortization | 484,380 | 27,977 | — | — | 512,357 | ||||||||||||||||
Net Utility Plant | 1,082,916 | 637,598 | — | — | 1,720,514 | ||||||||||||||||
Goodwill | — | 132,604 | 168,726 | — | D | 301,330 | |||||||||||||||
Other Property and Investments | 59,229 | 3,334 | — | — | 62,563 | ||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | 556,489 | 8,065 | (977,802 | ) | 445,300 | E, F | 32,052 | ||||||||||||||
Accounts receivable | 141,181 | 54,524 | — | — | 195,705 | ||||||||||||||||
Allowance for doubtful accounts | (9,024 | ) | (1,300 | ) | — | — | (10,324 | ) | |||||||||||||
Delayed customer billings | 11,319 | — | — | — | 11,319 | ||||||||||||||||
Inventories | 72,611 | 42,015 | — | — | 114,626 | ||||||||||||||||
Natural gas receivable | 24,304 | — | — | — | 24,304 | ||||||||||||||||
Unamortized purchased gas adjustments | 6,230 | — | — | — | 6,230 | ||||||||||||||||
Deferred income taxes | 2,888 | — | — | — | 2,888 | ||||||||||||||||
Prepayments and other | 35,391 | 483 | — | — | 35,874 | ||||||||||||||||
Total Current Assets | 841,389 | 103,787 | (977,802 | ) | 445,300 | 412,674 | |||||||||||||||
Regulatory assets and other deferred charges | 438,505 | 73,943 | — | 4,700 | F | 517,148 | |||||||||||||||
Total Assets | $ | 2,422,039 | $ | 951,266 | $ | (809,076 | ) | $ | 450,000 | $ | 3,014,229 |
The Laclede Group, Inc. | Missouri Gas Energy | Pro Forma Adjustments Relating to the MGE Acquisition | Pro Forma Adjustments Relating to Financing | Note 3 | Pro Forma Combined | ||||||||||||||||||
(Thousands) | |||||||||||||||||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||||||||
Capitalization: | |||||||||||||||||||||||
Total common stock equity | $ | 1,080,997 | $ | 620,391 | $ | (626,128 | ) | $ | — | G, H | $ | 1,075,260 | |||||||||||
Long-term debt (less current portion) | 464,444 | — | — | 450,000 | F | 914,444 | |||||||||||||||||
Total Capitalization | 1,545,441 | 620,391 | (626,128 | ) | 450,000 | 1,989,704 | |||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||
Accounts payable | 104,862 | 26,138 | — | — | 131,000 | ||||||||||||||||||
Advance customer billings | — | 1,626 | — | — | 1,626 | ||||||||||||||||||
Accrued liabilities and other | 77,939 | 49,075 | (10,189 | ) | — | I | 116,825 | ||||||||||||||||
Total Current Liabilities | 182,801 | 76,839 | (10,189 | ) | — | 249,451 | |||||||||||||||||
Deferred Credits and Other Liabilities: | |||||||||||||||||||||||
Deferred income taxes | 377,965 | 172,759 | (172,759 | ) | — | I | 377,965 | ||||||||||||||||
Pension and postretirement benefit costs | 181,691 | 58,880 | — | — | 240,571 | ||||||||||||||||||
Regulatory liabilities | 61,335 | 2,240 | — | — | 63,575 | ||||||||||||||||||
Asset retirement obligations and other | 72,806 | 20,157 | — | — | 92,963 | ||||||||||||||||||
Total Deferred Credits and Other Liabilities | 693,797 | 254,036 | (172,759 | ) | — | 775,074 | |||||||||||||||||
Total Capitalization and Liabilities | $ | 2,422,039 | $ | 951,266 | $ | (809,076 | ) | $ | 450,000 | $ | 3,014,229 |
The Laclede Group, Inc. | Missouri Gas Energy (1) | Pro Forma Adjustments Relating to the MGE Acquisition | Pro Forma Adjustments Relating to Financing | Note 3 | Pro Forma Combined | ||||||||||||||||
(Thousands, Except Per Share Amounts) | |||||||||||||||||||||
Operating Revenues: | |||||||||||||||||||||
Gas Utility | $ | 763,447 | $ | 452,327 | $ | — | $ | — | $ | 1,215,774 | |||||||||||
Gas Marketing and Other | 362,028 | — | — | — | 362,028 | ||||||||||||||||
Total Operating Revenues | 1,125,475 | 452,327 | — | — | 1,577,802 | ||||||||||||||||
Operating Expenses: | |||||||||||||||||||||
Gas Utility | |||||||||||||||||||||
Natural and propane gas | 397,304 | 223,924 | — | — | 621,228 | ||||||||||||||||
Other operation and maintenance | 167,351 | 117,368 | — | — | 284,719 | ||||||||||||||||
Depreciation and amortization | 40,739 | 29,936 | — | — | 70,675 | ||||||||||||||||
Taxes, other than income taxes | 53,672 | 38,341 | — | — | 92,013 | ||||||||||||||||
Total Utility Operating Expenses | 659,066 | 409,569 | — | — | 1,068,635 | ||||||||||||||||
Gas Marketing and Other | 355,807 | — | (200 | ) | — | J | 355,607 | ||||||||||||||
Total Operating Expenses | 1,014,873 | 409,569 | (200 | ) | — | 1,424,242 | |||||||||||||||
Operating Income | 110,602 | 42,758 | 200 | — | 153,560 | ||||||||||||||||
Other Income and (Income Deductions) - Net | 3,272 | (131 | ) | — | — | 3,141 | |||||||||||||||
Interest Charges | 24,945 | (243 | ) | 304 | 15,750 | K, L | 40,756 | ||||||||||||||
Income (Loss) Before Income Taxes | 88,929 | 42,870 | (104 | ) | (15,750 | ) | 115,945 | ||||||||||||||
Income Tax Expense (Benefit) | 26,289 | 19,532 | (40 | ) | (6,032 | ) | M | 39,749 | |||||||||||||
Net Income | $ | 62,640 | $ | 23,338 | $ | (64 | ) | $ | (9,718 | ) | $ | 76,196 | |||||||||
Weighted Average Number of Common Shares Outstanding: | |||||||||||||||||||||
Basic | 22,262 | 10,005 | (Notes 2 & 4) | 32,267 | |||||||||||||||||
Diluted | 22,340 | 10,005 | (Notes 2 & 4) | 32,345 | |||||||||||||||||
Basic Earnings Per Share of Common Stock | $ | 2.80 | $ | 2.35 | |||||||||||||||||
Diluted Earnings Per Share of Common Stock | $ | 2.79 | $ | 2.35 |
The Laclede Group, Inc. | Missouri Gas Energy (1) | Pro Forma Adjustments Relating to the MGE Acquisition | Pro Forma Adjustments Relating to Financing | Note 3 | Pro Forma Combined | |||||||||||||||||
(Thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Utility Plant | $ | 1,497,419 | $ | 654,105 | $ | — | $ | — | $ | 2,151,524 | ||||||||||||
Less: Accumulated depreciation and amortization | 478,120 | 15,793 | — | — | 493,913 | |||||||||||||||||
Net Utility Plant | 1,019,299 | 638,312 | — | — | 1,657,611 | |||||||||||||||||
Goodwill | — | 132,604 | 102,471 | — | N | 235,075 | ||||||||||||||||
Other Property and Investments | 56,814 | 3,334 | — | — | 60,148 | |||||||||||||||||
Current Assets: | ||||||||||||||||||||||
Cash and cash equivalents | 27,457 | 16,641 | (891,624 | ) | 872,323 | O, R | 24,797 | |||||||||||||||
Accounts receivable | 141,547 | 103,079 | — | — | 244,626 | |||||||||||||||||
Allowance for doubtful accounts | (7,705 | ) | (500 | ) | — | — | (8,205 | ) | ||||||||||||||
Inventories | 106,472 | 52,863 | — | — | 159,335 | |||||||||||||||||
Natural gas receivable | 22,377 | — | — | — | 22,377 | |||||||||||||||||
Unamortized purchased gas adjustments | 40,674 | — | — | — | 40,674 | |||||||||||||||||
Prepayments and other | 12,194 | 1,437 | — | — | 13,631 | |||||||||||||||||
Total Current Assets | 343,016 | 173,520 | (891,624 | ) | 872,323 | 497,235 | ||||||||||||||||
Regulatory assets and other deferred charges | 461,133 | 109,122 | — | 4,700 | Q | 574,955 | ||||||||||||||||
Total Assets | $ | 1,880,262 | $ | 1,056,892 | $ | (789,153 | ) | $ | 877,023 | $ | 3,025,024 |
The Laclede Group, Inc. | Missouri Gas Energy (1) | Pro Forma Adjustments Relating to the MGE Acquisition | Pro Forma Adjustments Relating to Financing | Note 3 | Pro Forma Combined | ||||||||||||||
(Thousands) | |||||||||||||||||||
CAPITALIZATION AND LIABILITIES | |||||||||||||||||||
Capitalization: | |||||||||||||||||||
Total common stock equity | $ | 601,611 | $ | 700,544 | $ | (711,527 | ) | $ | 427,023 | S, T, P | $ | 1,017,651 | |||||||
Long-term debt (less current portion) | 339,416 | — | — | 450,000 | Q | 789,416 | |||||||||||||
Total Capitalization | 941,027 | 700,544 | (711,527 | ) | 877,023 | 1,807,067 | |||||||||||||
Current Liabilities: | |||||||||||||||||||
Notes payable | 40,100 | — | 100,000 | — | O | 140,100 | |||||||||||||
Accounts payable | 89,503 | 32,154 | — | — | 121,657 | ||||||||||||||
Advance customer billings | 25,146 | 23,536 | — | — | 48,682 | ||||||||||||||
Current portion of long-term debt | 25,000 | — | — | — | 25,000 | ||||||||||||||
Accrued liabilities and other | 72,375 | 50,397 | (10,626 | ) | — | U | 112,146 | ||||||||||||
Total Current Liabilities | 252,124 | 106,087 | 89,374 | — | 447,585 | ||||||||||||||
Deferred Credits and Other Liabilities: | |||||||||||||||||||
Deferred income taxes | 355,509 | 167,000 | (167,000 | ) | — | U | 355,509 | ||||||||||||
Pension and postretirement benefit costs | 196,558 | 64,389 | — | — | 260,947 | ||||||||||||||
Regulatory liabilities | 59,432 | 2,289 | — | — | 61,721 | ||||||||||||||
Asset retirement obligations and other | 75,612 | 16,583 | — | — | 92,195 | ||||||||||||||
Total Deferred Credits and Other Liabilities | 687,111 | 250,261 | (167,000 | ) | — | 770,372 | |||||||||||||
Commitments and Contingencies | |||||||||||||||||||
Total Capitalization and Liabilities | $ | 1,880,262 | $ | 1,056,892 | $ | (789,153 | ) | $ | 877,023 | $ | 3,025,024 |
• | directly attributable to the MGE acquisition; |
• | factually supportable; and |
• | with respect to the statements of income, expected to have a continuing impact on the combined results of Laclede Group and MGE. |
(Dollar amounts in thousands) | Nine Months Ended June 30, 2013 | |||
Issuance of first mortgage bonds | 450,000 | |||
Interest rate | 3.50 | % | ||
Pro forma interest expense (270 / 360 days) | $ | 11,813 |
(Thousands) | ||||
Purchase price | $ | 975,000 | ||
NEG Proceeds | (11,000 | ) | ||
Total purchase consideration | 964,000 | |||
Less: book value of MGE net assets (excluding historical goodwill) | (487,787 | ) | ||
Less: MGE historical goodwill included in the MGE net assets | (132,604 | ) | ||
Excess consideration transferred over net book value of assets acquired (excluding historical goodwill) | 343,609 | |||
Adjustments related to: | ||||
Pro forma adjustment for cash retained by sellers (see note (E)) | 8,065 | |||
Pro forma adjustment to deferred income tax liabilities (see note (I)) | (182,948 | ) | ||
Pro forma adjustment to goodwill | 168,726 | |||
MGE historical goodwill included in MGE net assets | 132,604 | |||
Pro forma goodwill | $ | 301,330 |
(Thousands) | ||||
Purchase price | $ | (975,000 | ) | |
NEG proceeds | 11,000 | |||
Transaction expenses, net of tax benefit received (see note (H)) | (5,737 | ) | ||
Net cash used | (969,737 | ) | ||
Less cash retained by sellers | (8,065 | ) | ||
Net change to cash | $ | (977,802 | ) |
(Thousands) | ||||
Assumed debt proceeds | 450,000 | |||
Debt issuance costs | (4,700 | ) | ||
Net proceeds received | $ | 445,300 |
(Dollar amounts in thousands) | Year Ended September 30, 2012 | ||||
Issuance of short-term borrowings | $ | 100,000 | |||
Interest rate | 0.30 | % | |||
Pro forma interest expense (365 / 360 days) | $ | 304 |
(Dollar amounts in thousands) | Year Ended September 30, 2012 | ||||
Issuance of first mortgage bonds | $ | 450,000 | |||
Interest rate | 3.50 | % | |||
Pro forma interest expense (360 / 360 days) | $ | 15,750 |
(Thousands) | ||||
Purchase price | $ | 975,000 | ||
NEG Proceeds | (11,000 | ) | ||
Total purchase consideration | 964,000 | |||
Less: net book value of MGE net assets (excluding historical goodwill) | (567,940 | ) | ||
Less: MGE historical goodwill included in the MGE net assets | (132,604 | ) | ||
Excess consideration transferred over net book value of assets acquired | 263,456 | |||
Adjustments related to: | ||||
Pro forma adjustment for cash retained by sellers (See note (O)) | 16,641 | |||
Pro forma adjustment to deferred income tax liabilities (See note (U)) | (177,626 | ) | ||
Pro forma adjustment to goodwill | 102,471 | |||
Historical MGE goodwill included in MGE net assets | 132,604 | |||
Pro forma goodwill | $ | 235,075 |
(Thousands) | ||||
Purchase price | $ | (975,000 | ) | |
NEG proceeds | 11,000 | |||
Notes payable - short-term borrowings (see note (K)) | 100,000 | |||
Transaction expenses, net of tax benefit received (see note (T)) | (10,983 | ) | ||
Net cash used | (874,983 | ) | ||
Less cash retained by sellers | (16,641 | ) | ||
Net change to cash | $ | (891,624 | ) |
(Thousands) | ||||
Equity proceeds | $ | 445,223 | ||
Equity issuance costs | (18,200 | ) | ||
Net proceeds received | $ | 427,023 |
(Thousands) | ||||
Assumed debt proceeds | $ | 450,000 | ||
Debt issuance costs | (4,700 | ) | ||
Net proceeds received | $ | 445,300 |
(Thousands) | ||||
Assumed equity proceeds | $ | 445,223 | ||
Equity issuance costs | (18,200 | ) | ||
Assumed debt proceeds | 450,000 | |||
Debt issuance costs | (4,700 | ) | ||
Net proceeds received | $ | 872,323 |
(Thousands) | ||||
Operating Revenues | $ | 143,025 | ||
Operating Income | 16,485 | |||
Net Income | 9,122 |