EX-99.1 2 ex99.htm 2007 FY EARNINGS PRESS RELEASE OF THE LACLEDE GROUP ex99.htm
NEWS RELEASE
THE LACLEDE GROUP
720 Olive Street, St. Louis, MO 63101

CONTACT: George Csolak
(314) 342-0652
  
  FOR IMMEDIATE RELEASE

The Laclede Group Achieves Record Earnings for Fifth Consecutive Year

ST. LOUIS, MO, October 26, 2007 - The Laclede Group, Inc., (NYSE:LG) reported its fifth consecutive year of record earnings today. For fiscal year 2007, which ended September 30, consolidated earnings were $49.8 million, compared with $49.0 million in fiscal 2006. Diluted earnings per share were $2.31 for the year, compared with diluted earnings of $2.30 per share for fiscal 2006.
Results reported by Laclede Group’s regulated subsidiary, Laclede Gas Company, which celebrated its 150th year of business during this fiscal year, improved $3.6 million compared to fiscal 2006. The improvement was primarily due to the effect of higher utility sales volumes attributable to colder weather, a general rate increase effective August 1, 2007 and additional Infrastructure System Replacement Surcharge revenues. These factors were partially offset by higher operating and depreciation expenses. Laclede Gas is Missouri’s largest natural gas distribution utility.
Net income for SM&P Utility Resources, Inc., Laclede Group’s non-regulated underground facility locating and marking service business, increased $.9 million compared to last year.  The increase was primarily due to the effect of a non-recurring charge related to settlement costs associated with employment-related litigation recorded last year and the addition of new business in existing markets this year, which were partially offset by higher operating expenses this year.
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Laclede Energy Resources, Inc. (LER), Laclede Group’s non-regulated natural gas commodity service provider, posted earnings totaling $13.3 million for fiscal 2007 compared to $17.1 million in fiscal 2006. While LER achieved increased sales volumes this year over last, margins this year were reduced as pricing volatility in Gulf Coast markets stabilized.
 
For further details concerning The Laclede Group’s fiscal 2007 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 June 30, 2007, filed with the Securities and Exchange Commission.

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UNAUDITED
 
STATEMENTS OF CONSOLIDATED INCOME
 
THE LACLEDE GROUP, INC.
 
(Thousands, Except Per Share Amounts)
     
Three Months Ended
September 30,
  
Twelve Months Ended
September 30,
   
2007
  
2006
  
2007
  
2006
                 
OPERATING REVENUES
                
 
Regulated
                
 
   Gas distribution
  
$  103,777
  
$    91,637
  
$ 1,131,554
  
$ 1,141,011
 
Non-Regulated
                
 
   Services
  
47,463
  
46,089
  
165,733
  
162,523
 
   Gas marketing
  
170,616
  
130,135
  
718,704
  
689,572
 
   Other
  
1,416
  
1,133
  
5,603
  
4,445
 
Total operating revenues
  
323,272
  
268,994
  
2,021,594
  
1,997,551
                   
OPERATING EXPENSES
                
 
Regulated
                
 
   Natural and propane gas
  
51,335
  
47,989
  
797,924
  
821,721
 
   Other operation expenses
  
32,019
  
26,282
  
131,798
  
128,180
 
   Maintenance
  
6,818
  
5,463
  
24,306
  
21,198
 
   Depreciation and amortization
  
8,450
  
8,368
  
34,080
  
30,904
 
   Taxes, other than income taxes
  
7,894
  
8,127
  
68,361
  
71,038
 
Total regulated operating expenses
  
106,516
  
96,229
  
1,056,469
  
1,073,041
 
Non-Regulated
                
 
   Services
  
41,738
  
41,070
  
156,658
  
155,133
 
   Gas marketing
  
167,465
  
126,446
  
698,962
  
662,391
 
   Other
  
761
  
603
  
4,239
  
3,711
 
Total operating expenses
  
316,480
  
264,348
  
1,916,328
  
1,894,276
Operating Income
  
6,792
  
4,646
  
105,266
  
103,275
Other Income and (Income Deductions) – Net
  
1,409
  
1,659
  
6,812
  
5,508
                   
Interest Charges:
                
 
Interest on long-term debt
  
5,625
  
5,626
  
22,502
  
22,329
 
Interest on long-term debt to unconsolidated affiliate trust
  
893
  
893
  
3,573
  
3,573
 
Other interest charges
  
2,955
  
2,524
  
11,154
  
10,277
 
Total interest charges
  
9,473
  
9,043
  
37,229
  
36,179
Income (Loss) Before Income Taxes and Dividends on Redeemable Preferred Stock – Laclede Gas
  
(1,272)
  
(2,738)
  
74,849
  
72,604
Income Tax Expense (Benefit)
  
(1,885)
  
(1,913)
  
25,035
  
23,567
Dividends on Redeemable Preferred Stock – Laclede Gas
  
10
  
11
  
43
  
48
Net Income (Loss)
  
$         603
  
 $        (836)
  
$      49,771
  
$      48,989
                 
Average Number of Common Shares Outstanding
  
21,514
  
21,298
  
21,455
  
21,247
Basic Earnings (Loss) Per Share of Common Stock
  
$ 0.03
  
$ (0.04)
  
$ 2.32
  
$ 2.31
Diluted Earnings (Loss) Per Share of Common Stock
  
$ 0.03
  
$ (0.04)
  
$ 2.31
  
$ 2.30