The Laclede Group Inc. (LG, Financial) filed Quarterly Report for the period ended 2010-12-31.
Laclede Grp Inc has a market cap of $883.6 million; its shares were traded at around $39.48 with a P/E ratio of 16.5 and P/S ratio of 0.5. The dividend yield of Laclede Grp Inc stocks is 4.1%. Laclede Grp Inc had an annual average earning growth of 6.1% over the past 10 years.Hedge Fund Gurus that owns LG: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns LG: Mario Gabelli of GAMCO Investors.
The Non-Regulated Gas Marketing segment reported GAAP earnings totaling $1.9 million, an increase of $0.1 million compared with the same quarter last year. Net economic earnings for the three months ended December 31, 2010 decreased $2.8 million from the three months ended December 31, 2009. The decreased net economic earnings were primarily due to LER s decreased margins on sales of natural gas, and to a lesser extent, the effect of 8% lower sales volumes. The reduced sales margins and volumes were driven primarily by narrower regional price differentials that continue to prevail in the marketplace.
Both Other net income and Other net economic earnings decreased $3.7 million compared with the same quarter last year primarily due to the effect of a propane transaction in the wholesale market by Laclede Gas during the quarter ended December 31, 2009. This non-regulated transaction resulted from an inventory exchange that the counterparty settled in cash instead of through a return of inventory, and resulted in income, net of income taxes, totaling $3.7 million, contributing $0.16 to diluted earnings per share.
Regulated Gas Distribution Operating Expenses for the quarter ended December 31, 2010 decreased $11.5 million from the same quarter last year. Natural and propane gas expense decreased $8.6 million, or 4.7%, from last year s level, primarily attributable to lower rates charged by our suppliers and decreased system volumes purchased for sendout, partially offset by higher off-system gas expense. Other operation and maintenance expenses decreased $2.6 million, or 6.0%, primarily due to a higher rate of overheads capitalized, a lower provision for uncollectible accounts, a gain on the disposal of assets, and reduced distribution charges, partially offset by increased group insurance charges. Taxes, other than income taxes, decreased $0.5 million, or 2.9%, primarily due to decreased gross receipts taxes (attributable to the decreased revenues).
The minor decrease in interest charges was primarily due to lower interest on long-term debt, primarily attributable to the November 2010 maturity of $25 million principal amount of 6 1/2 % first mortgage bonds. This decrease was largely offset by an increase in interest on short-term debt. Average short-term interest rates were 0.4% for the quarter ended December 31, 2010 compared with 0.2% for the quarter ended December 31, 2009. Average short-term borrowings were $127.9 million for the quarter ended December 31, 2010 compared with $146.1 million for the quarter ended December 31, 2009.
On December 28, 2006, the MoPSC Staff proposed a disallowance of $7.2 million related to Laclede Gas recovery of its purchased gas costs applicable to fiscal year 2005, which the Staff later reduced to a $1.7 million disallowance pertaining to Laclede Gas purchase of gas from a marketing affiliate, LER. The MoPSC Staff has also proposed disallowances of $2.8 million and $1.5 million of gas costs relating to Laclede Gas purchases of gas supply from LER for fiscal years 2006 and 2007, respectively. The MoPSC Staff proposed a number of non-monetary recommendations only, based on its review of gas costs for fiscal years 2008 and 2009. Laclede Gas believes that the proposed disallowances lack merit and is vigorously opposing these adjustments in proceedings before the MoPSC. As such, no amount has been recorded in the financial statements for these proposed disallowances.
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Laclede Grp Inc has a market cap of $883.6 million; its shares were traded at around $39.48 with a P/E ratio of 16.5 and P/S ratio of 0.5. The dividend yield of Laclede Grp Inc stocks is 4.1%. Laclede Grp Inc had an annual average earning growth of 6.1% over the past 10 years.Hedge Fund Gurus that owns LG: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns LG: Mario Gabelli of GAMCO Investors.
Highlight of Business Operations:
Laclede Group s net income was $23.4 million for the quarter ended December 31, 2010, compared with $22.9 million for the quarter ended December 31, 2009. Basic and diluted earnings per share for the quarter ended December 31, 2010 were $1.05 compared with basic and diluted earnings per share of $1.03 for the quarter ended December 31, 2009. Earnings increased compared to last year primarily due to improved results reported by Laclede Group s Regulated Gas Distribution segment, partially offset by decreased Other income. Net economic earnings were $23.4 million for the quarter ended December 31, 2010 compared with $25.8 million for the same quarter last year. Net economic earnings per share were $1.05 for the quarter ended December 31, 2010 compared with $1.16 for the quarter ended December 31, 2009.The Non-Regulated Gas Marketing segment reported GAAP earnings totaling $1.9 million, an increase of $0.1 million compared with the same quarter last year. Net economic earnings for the three months ended December 31, 2010 decreased $2.8 million from the three months ended December 31, 2009. The decreased net economic earnings were primarily due to LER s decreased margins on sales of natural gas, and to a lesser extent, the effect of 8% lower sales volumes. The reduced sales margins and volumes were driven primarily by narrower regional price differentials that continue to prevail in the marketplace.
Both Other net income and Other net economic earnings decreased $3.7 million compared with the same quarter last year primarily due to the effect of a propane transaction in the wholesale market by Laclede Gas during the quarter ended December 31, 2009. This non-regulated transaction resulted from an inventory exchange that the counterparty settled in cash instead of through a return of inventory, and resulted in income, net of income taxes, totaling $3.7 million, contributing $0.16 to diluted earnings per share.
Regulated Gas Distribution Operating Expenses for the quarter ended December 31, 2010 decreased $11.5 million from the same quarter last year. Natural and propane gas expense decreased $8.6 million, or 4.7%, from last year s level, primarily attributable to lower rates charged by our suppliers and decreased system volumes purchased for sendout, partially offset by higher off-system gas expense. Other operation and maintenance expenses decreased $2.6 million, or 6.0%, primarily due to a higher rate of overheads capitalized, a lower provision for uncollectible accounts, a gain on the disposal of assets, and reduced distribution charges, partially offset by increased group insurance charges. Taxes, other than income taxes, decreased $0.5 million, or 2.9%, primarily due to decreased gross receipts taxes (attributable to the decreased revenues).
The minor decrease in interest charges was primarily due to lower interest on long-term debt, primarily attributable to the November 2010 maturity of $25 million principal amount of 6 1/2 % first mortgage bonds. This decrease was largely offset by an increase in interest on short-term debt. Average short-term interest rates were 0.4% for the quarter ended December 31, 2010 compared with 0.2% for the quarter ended December 31, 2009. Average short-term borrowings were $127.9 million for the quarter ended December 31, 2010 compared with $146.1 million for the quarter ended December 31, 2009.
On December 28, 2006, the MoPSC Staff proposed a disallowance of $7.2 million related to Laclede Gas recovery of its purchased gas costs applicable to fiscal year 2005, which the Staff later reduced to a $1.7 million disallowance pertaining to Laclede Gas purchase of gas from a marketing affiliate, LER. The MoPSC Staff has also proposed disallowances of $2.8 million and $1.5 million of gas costs relating to Laclede Gas purchases of gas supply from LER for fiscal years 2006 and 2007, respectively. The MoPSC Staff proposed a number of non-monetary recommendations only, based on its review of gas costs for fiscal years 2008 and 2009. Laclede Gas believes that the proposed disallowances lack merit and is vigorously opposing these adjustments in proceedings before the MoPSC. As such, no amount has been recorded in the financial statements for these proposed disallowances.
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