UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: April 28, 2011
(Date of earliest event reported)
The Empire District Electric Company
(Exact name of registrant as specified in its charter)
KS
(State or other jurisdiction
of incorporation)
1-3368
(Commission File Number)
44-0236370
(IRS Employer
Identification Number)
602 S. Joplin Ave, Joplin, MO
(Address of principal executive offices)
64801
(Zip Code)
417-625-5100
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
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Item 2.02. Results of Operations and Financial Condition On April 28, 2011, The Empire District Electric Company (the "Company") issued a press release announcing the Company's earnings for the first quarter of 2011 and for the twelve month period ended March 31, 2011. Furnished herewith as Exhibit 99.1 is a copy of the press release, which is incorporated by reference herein. The information in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: April 28, 2011 |
THE EMPIRE DISTRICT ELECTRIC COMPANY
By: /s/ Gregory A. Knapp |
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| Exhibit No. | Description |
| 99.1 | Press Release of The Empire District Electric Company dated April 28, 2011 |
JOPLIN, MO -- (Marketwire - April 28, 2011) - (NYSE: EDE) At the Board of Directors meeting of The Empire District Electric Company held today, the Directors declared a quarterly dividend of $0.32 per share on common stock payable June 15, 2011, to holders of record as of June 1, 2011.
The Company, an operator of regulated electric, gas and water utilities, announced today the results for the quarter and twelve months ended March 31, 2011.
Highlights
THE EMPIRE DISTRICT ELECTRIC COMPANY
SEGMENT FINANCIAL HIGHLIGHTS
(in 000's except per share information,
certain segment amounts exclude eliminations)
Quarter Ended March 31, 2011
------------------------------------------
Electric Gas Other Consolidated
--------- --------- --------- ------------
Revenues $ 128,360 $ 20,989 $ 1,527 $ 150,728
--------- --------- --------- ------------
Fuel, Purchased Power, and Cost
of Natural Gas Sold and
Transported 54,217 12,040 -- 66,257
--------- --------- --------- ------------
Other Operating Expenses 55,867 5,754 1,150 62,623
--------- --------- --------- ------------
Operating Income 18,276 3,195 377 21,848
--------- --------- --------- ------------
Net Income $ 9,301 $ 2,246 $ 375 $ 11,922
--------- --------- --------- ------------
Earnings Per Weighted-Average
Share, Basic and Diluted $ 0.29
--------- --------- --------- ------------
THE EMPIRE DISTRICT ELECTRIC COMPANY
SEGMENT FINANCIAL HIGHLIGHTS
(in 000's except per share information,
certain segment amounts exclude eliminations)
Quarter Ended March 31, 2010
------------------------------------------
Electric Gas Other Consolidated
--------- --------- --------- ------------
Revenues $ 114,033 $ 24,560 $ 1,449 $ 139,893
--------- --------- --------- ------------
Fuel, Purchased Power, and Cost
of Natural Gas Sold and
Transported 50,684 15,109 -- 65,793
--------- --------- --------- ------------
Other Operating Expenses 50,864 6,216 1,091 58,022
--------- --------- --------- ------------
Operating Income 12,485 3,235 358 16,078
--------- --------- --------- ------------
Net Income $ 5,924 $ 2,314 $ 348 $ 8,586
--------- --------- --------- ------------
Earnings Per Weighted-Average
Share, Basic and Diluted $ 0.22
--------- --------- --------- ------------
First Quarter Electric Results
Electric segment revenues were higher for the 2011 quarter compared to 2010
by approximately $14.3 million. Rate changes, primarily from Missouri and
Kansas customers, increased revenues approximately $15.6 million over the
2010 period. Off-system revenues were higher by $1.7 million as well. Other
revenues and customer growth increased revenues by a combined $0.8 million
compared to the 2010 first quarter. The estimated impact of weather
decreased revenues an estimated $3.8 million.
Total electric fuel and purchased power expenses for the quarter increased by approximately $3.5 million compared to the 2010 quarter. The Company's electric fuel costs were relatively flat compared to the 2010 first quarter. Increased volumes and prices related to coal costs were almost entirely offset by decreases in volume and prices related to natural gas costs. Purchased power costs decreased by approximately $3.4 million compared to the 2010 period which was mostly attributable to lower volumes. Fuel adjustment mechanisms increased fuel expense by approximately $6.8 million compared to the adjustments made in the 2010 first quarter.
Other operating expenses increased in total by approximately $1.4 million during the first quarter of 2011 compared to 2010. Pension expense was higher by $0.6 million, and our Southwest Power Pool transmission expenses and Plum Point delivery charges were also higher by approximately $0.8 million combined. Maintenance expenses increased by approximately $1.4 million when comparing the two periods. The increase was incurred by both production and distribution areas which were each $0.7 million higher. Depreciation and amortization increased approximately $3.7 million in the 2011 quarter compared to 2010. The increase was mostly attributable to higher levels of regulatory amortization prescribed in our Missouri electric rate increase granted last September. Other taxes, such as property, franchise and city taxes, increased $1.0 million over the 2010 period. In summary, the electric segment net income was $9.3 million for the 2011 quarter compared to $5.9 million for 2010.
First Quarter Gas Results
Gas segment revenues for the first
quarter of 2011 were lower by $3.6 million compared to 2010. The cost of
natural gas sold and transported decreased $3.1 million. The slight
decrease in gas segment margin of $0.5 million was mostly attributable to
weather. The Company's service territory experienced an extreme cold spell
during 2010 and while 2011 was still colder than normal, it did not match
the 2010 weather pattern. Gas segment operations expenses were lower by
approximately $0.6 million while maintenance expenses were relatively flat
when comparing the quarters. Depreciation increased $0.4 million mostly as
a result of changed depreciation rates which were effective with April 2010
rates. Net income for the gas segment was $2.2 million for the 2011 quarter
compared to $2.3 million for 2010.
First Quarter Consolidated Results
Total interest expense increased approximately $0.7 million in the 2011
first quarter compared to 2010. Long term debt interest expense decreased
by $0.9 million mostly from refinancing $100 million of debt in 2010. Short
term debt interest was also lower by approximately $0.2 million, and other
interest costs were lower by an estimated $0.6 million which was mostly due
to carrying charge deferrals related to the Iatan 2 plant. However, a
decrease in the allowance for funds used during construction (AFUDC) income
of $2.4 million offset these other interest cost decreases. The Company's
other income and deductions lowered earnings compared to the 2010 first
quarter as the equity AFUDC decreased approximately $1.7 million. The
Company's AFUDC was lower mainly due to the Iatan 2 and Plum Point plants
being in service during the 2011 first quarter.
The Company's effective income tax rate decreased sharply during the 2011 first quarter as 2010 included a $2.1 million one-time non-cash charge incurred when the Patient Protection and Affordable Care Act (H.R. 3590) became law. The 2010 first quarter also included a $1.2 million non-cash charge related to deferred taxes which are no longer expected to be recoverable from Missouri customers. As a result, the Company's effective income tax rate for the 2011 first quarter was approximately 38% compared to 54% in the 2010 period.
THE EMPIRE DISTRICT ELECTRIC COMPANY
SEGMENT FINANCIAL HIGHLIGHTS
(in 000's except per share information,
certain segment amounts exclude eliminations)
Twelve Months Ended March 31, 2011
------------------------------------------
Electric Gas Other Consolidated
--------- --------- --------- ------------
Revenues $ 499,042 $ 47,314 $ 6,346 $ 552,110
--------- --------- --------- ------------
Fuel, Purchased Power, and Cost
of Natural Gas Sold and
Transported 202,831 23,545 -- 226,376
--------- --------- --------- ------------
Other Operating Expenses 217,892 17,482 4,687 239,469
--------- --------- --------- ------------
Operating Income 78,319 6,287 1,659 86,265
--------- --------- --------- ------------
Net Income $ 46,564 $ 2,534 $ 1,634 $ 50,732
--------- --------- --------- ------------
Earnings Per Weighted-Average
Share, Basic and Diluted
$ 1.23
--------- --------- --------- ------------
Twelve Months Ended March 31, 2010
------------------------------------------
Electric Gas Other Consolidated
--------- --------- --------- ------------
Revenues $ 442,142 $ 53,787 $ 5,709 $ 501,046
--------- --------- --------- ------------
Fuel, Purchased Power, and Cost
of Natural Gas Sold and
Transported 185,922 31,402 -- 217,324
--------- --------- --------- ------------
Other Operating Expenses 191,018 17,131 4,247 211,804
--------- --------- --------- ------------
Operating Income 65,202 5,254 1,462 71,918
--------- --------- --------- ------------
Net Income $ 36,158 $ 1,436 $ 1,374 $ 38,968
--------- --------- --------- ------------
Earnings Per Weighted-Average
Share, Basic and Diluted
$ 1.08
--------- --------- --------- ------------
Twelve Months Ended Electric Results
Electric segment revenues for the twelve months ended March 31, 2011
increased $56.9 million over the same 2010 period. Rate increases added
approximately $32.9 million to the 2011 period compared to the 2010 period,
primarily from the Company's Missouri jurisdiction. The estimated weather
impact added approximately $13.8 million, while customer growth contributed
an additional $1.0 million over the 2010 period. Off-system revenues
increased $8.0 million over the 2010 period and other electric revenues
increased $1.1 million on a comparative basis. Total electric fuel and
purchased power expenses for the 2011 twelve month period increased by
approximately $16.9 million over the 2010 period. Increased overall
volumes, in large part due to warmer summer temperatures in the 2011 twelve
month period, resulted in increased electric fuel and purchased power
expense. Other operating expenses increased about $6.8 million, and
maintenance expenses increased approximately $5.2 million. Depreciation
increased $9.2 million, which was primarily driven by increased Missouri
regulatory amortization and depreciation of plants put in service in 2010
not eligible for regulatory deferrals. Other taxes were higher by $2.6
million in the 2011 period compared to 2010. Overall, the electric segment
2011 twelve month period resulted in net income of $46.6 million compared
to $36.2 million for the same 2010 period.
Twelve Months Ended Gas Results
Revenues from gas operations during the 2011 twelve month period ended
March 31 decreased $6.5 million compared to the same 2010 period. The cost
of natural gas sold and transported decreased $7.9 million during 2011,
resulting in an overall increase in gas segment margin of $1.4 million. The
increased margin was primarily the result of the gas rate case which was
effective April 1, 2010. Other operating expenses decreased by $1.3
million, while maintenance expenses were slightly lower by $0.1 million.
Depreciation was higher by $1.4 million compared to the 2010 period, but
other taxes were lower by approximately $0.3 million. The gas segment net
income for the twelve month 2011 period was $2.5 million compared to $1.4
million for 2010.
Twelve Months Ended Consolidated Results
Total interest charges decreased approximately $1.2 million in the 2011
twelve month period compared to 2010. Interest expense related to long term
debt decreased $4.1 million, and short term debt interest was lower by $0.4
million. Other interest costs were lower by $1.7 million which was largely
due to carrying charge deferrals. Lower debt related costs were partially
offset by a decrease in income related to debt AFUDC of $4.9 million. The
other income and expense category lowered earnings by $3.8 million when
comparing the twelve month periods and was primarily driven by a decrease
in equity AFUDC.
Reconciliation of Earnings Per Share
The following reconciliation of basic earnings per share compares the
quarter and twelve months ended March 31, 2011 versus March 31, 2010 and is
a non-GAAP presentation. The economic substance behind our non-GAAP
earnings per share (EPS) measure is to present the after tax impact of
significant items and components of the statement of income on a per share
basis before the impact of additional stock issuances. We believe this
presentation is useful to investors because the statement of income does
not readily show the EPS impact of the various components, including the
effect of new stock issuances. This could limit the readers' understanding
of the reasons for the EPS change from previous years. This information is
useful to management, and we believe this information is useful to
investors, to better understand the reasons for the fluctuation in EPS
between the prior and current years on a per share basis.
This reconciliation may not be comparable to other companies or more useful than the GAAP presentation included in the statements of income. We also note that this presentation does not purport to be an alternative to earnings per share determined in accordance with GAAP as a measure of operating performance or any other measure of financial performance presented in accordance with GAAP. Management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. The dilutive effect of additional shares issued in this table reflects the impact of all shares issued in the respective periods presented.
Quarter Twelve
Ended Months Ended
------------ ------------
Earnings Per Share - March 31, 2010 $ 0.22 $ 1.08
Revenues
Electric segment 0.24 1.06
Gas segment (0.06) (0.12)
Other segment 0.00 0.01
Expenses
Electric fuel and purchased power (0.06) (0.31)
Cost of natural gas sold and transported 0.05 0.15
Operating - electric segment (0.02) (0.12)
Operating - gas segment 0.01 0.02
Maintenance and repairs (0.02) (0.10)
Depreciation and amortization (0.07) (0.20)
Change in effective income tax rates 0.07 0.04
Other taxes (0.01) (0.04)
Interest charges 0.03 0.11
AFUDC (0.07) (0.16)
Other income and deductions 0.00 (0.01)
Dilutive effect of additional shares (0.02) (0.18)
------------ ------------
Earnings Per Share - March 31, 2011 $ 0.29 $ 1.23
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Earnings Conference Call
Bill Gipson, President and CEO, and Brad Beecher, Executive Vice President,
will host a conference call Friday, April 29, 2011, at 1:00 p.m. Eastern
Time to discuss earnings for the first quarter and twelve months ended
March 31, 2011. To phone in to the conference call, parties in the United
States should dial 1-877-941-0844, any time after 12:45 p.m. Eastern Time.
The presentation can also be accessed from Empire's website at
www.empiredistrict.com. A replay of the call will be available for two
weeks by dialing 1-800-406-7325 and entering passcode 4436254#.
Forward-looking and other material information may be discussed during the
conference call.
Based in Joplin, Missouri, The Empire District Electric Company (NYSE: EDE) is an investor-owned utility providing electric, natural gas (through its wholly owned subsidiary The Empire District Gas Company) and water service, with approximately 215,000 customers in Missouri, Kansas, Oklahoma, and Arkansas. A subsidiary of the Company also provides fiber optic services.
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements address future plans, objectives, expectations, and events or conditions concerning various matters. Actual results in each case could differ materially from those currently anticipated in such statements, by reason of the factors noted in our filings with the SEC, including the most recent Form 10-K.
Contact: MEDIA COMMUNICATIONS Amy Bass Director of Corporate Communications 417-625-5114 abass@empiredistrict.com INVESTOR RELATIONS Jan Watson Secretary - Treasurer 417-625-5108 jwatson@empiredistrict.com