The Laclede Group Inc. (LG, Financial) filed Quarterly Report for the period ended 2011-12-31.
Laclede Group Inc. has a market cap of $923 million; its shares were traded at around $41.36 with a P/E ratio of 14.6 and P/S ratio of 0.6. The dividend yield of Laclede Group Inc. stocks is 4.1%. Laclede Group Inc. had an annual average earning growth of 6.9% over the past 10 years.
Laclede Group s net income was $25.2 million for the quarter ended December 31, 2011, compared with $23.4 million for the quarter ended December 31, 2010. Basic and diluted earnings per share for the quarter ended December 31, 2011 were $1.13 and $1.12, respectively, compared with basic and diluted earnings per share of $1.05 for the quarter ended December 31, 2010. Earnings increased compared to last year primarily due to improved results reported by Laclede Group s Non-Regulated Gas Marketing Segment. Net economic earnings were $24.9 million for the quarter ended December 31, 2011 compared with $23.4 million for the same quarter last year. Net economic earnings per share were $1.11 for the quarter ended December 31, 2011 compared with $1.05 for the quarter ended December 31, 2010.
The Non-Regulated Gas Marketing segment reported GAAP earnings totaling $3.7 million, an increase of $1.8 million compared with the same quarter last year. Net economic earnings for the three months ended December 31, 2011 increased $1.5 million from the three months ended December 31, 2010. These increases were primarily due to higher margins attributable to reduced transportation costs resulting from the renegotiation of contracts that were renewed during fiscal year 2011.
Laclede Group had temporary cash investments totaling $19.8 million at December 31, 2011, earning an average interest rate of 0.2%. These investments, which are presented in the Cash and cash equivalents line of the Consolidated Balance Sheets, were diversified among money market funds and interest-bearing deposits at highly-rated commercial banks. The money market funds are accessible by the Company on demand. The bank deposits are also generally available on demand, though the banks reserve the right to require seven days notice for a withdrawal. These funds are used to support the working capital needs of the Company s subsidiaries. The balance of short-term investments was stable during the three months ended December 31, 2011. Due to lower yields available to Laclede Group on its short-term investments, Laclede Group elected to provide a portion of Laclede Gas short-term funding through intercompany lending during the three months ended December 31, 2011.
The Company is subject to interest rate risk associated with its long-term and short-term debt issuances. Based on average short-term borrowings during the three months ended December 31, 2011, an increase of 100 basis points in the underlying average interest rate for short-term debt would have caused an increase in interest expense of approximately $0.8 million on an annual basis. Portions of such increases may be offset through the application of PGA carrying costs. At December 31, 2011, Laclede Gas had fixed-rate long-term debt totaling $365 million (including current maturities). While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. However, increases or decreases in fair value would impact earnings and cash flows only if Laclede Gas were to reacquire any of these issues in the open market prior to maturity. Under GAAP applicable to Laclede Gas regulated operations, losses or gains on early redemptions of long-term debt would typically be deferred as regulatory assets or regulatory liabilities and amortized over a future period.
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Laclede Group Inc. has a market cap of $923 million; its shares were traded at around $41.36 with a P/E ratio of 14.6 and P/S ratio of 0.6. The dividend yield of Laclede Group Inc. stocks is 4.1%. Laclede Group Inc. had an annual average earning growth of 6.9% over the past 10 years.
Highlight of Business Operations:
In October 2011, LER formed a wholly owned subsidiary, LER Storage Services, Inc. (LSS), to utilize natural gas storage contracts for providing natural gas sales, but was not yet operational as of December 31, 2011. Effective January 1, 2012, LSS contracted for 1 Bcf of natural gas storage capacity for a thirteen month period through January 2013, and purchased 1 Bcf of natural gas in place during January 2012 for $3.0 million. Further, and separately, LSS has entered into a precedent agreement with a natural gas storage facility operator that will provide 1 Bcf of natural gas storage subject to the facility s successful completion of an expansion program in early to mid-2013.Laclede Group s net income was $25.2 million for the quarter ended December 31, 2011, compared with $23.4 million for the quarter ended December 31, 2010. Basic and diluted earnings per share for the quarter ended December 31, 2011 were $1.13 and $1.12, respectively, compared with basic and diluted earnings per share of $1.05 for the quarter ended December 31, 2010. Earnings increased compared to last year primarily due to improved results reported by Laclede Group s Non-Regulated Gas Marketing Segment. Net economic earnings were $24.9 million for the quarter ended December 31, 2011 compared with $23.4 million for the same quarter last year. Net economic earnings per share were $1.11 for the quarter ended December 31, 2011 compared with $1.05 for the quarter ended December 31, 2010.
The Non-Regulated Gas Marketing segment reported GAAP earnings totaling $3.7 million, an increase of $1.8 million compared with the same quarter last year. Net economic earnings for the three months ended December 31, 2011 increased $1.5 million from the three months ended December 31, 2010. These increases were primarily due to higher margins attributable to reduced transportation costs resulting from the renegotiation of contracts that were renewed during fiscal year 2011.
Laclede Group had temporary cash investments totaling $19.8 million at December 31, 2011, earning an average interest rate of 0.2%. These investments, which are presented in the Cash and cash equivalents line of the Consolidated Balance Sheets, were diversified among money market funds and interest-bearing deposits at highly-rated commercial banks. The money market funds are accessible by the Company on demand. The bank deposits are also generally available on demand, though the banks reserve the right to require seven days notice for a withdrawal. These funds are used to support the working capital needs of the Company s subsidiaries. The balance of short-term investments was stable during the three months ended December 31, 2011. Due to lower yields available to Laclede Group on its short-term investments, Laclede Group elected to provide a portion of Laclede Gas short-term funding through intercompany lending during the three months ended December 31, 2011.
The Company is subject to interest rate risk associated with its long-term and short-term debt issuances. Based on average short-term borrowings during the three months ended December 31, 2011, an increase of 100 basis points in the underlying average interest rate for short-term debt would have caused an increase in interest expense of approximately $0.8 million on an annual basis. Portions of such increases may be offset through the application of PGA carrying costs. At December 31, 2011, Laclede Gas had fixed-rate long-term debt totaling $365 million (including current maturities). While these long-term debt issues are fixed-rate, they are subject to changes in fair value as market interest rates change. However, increases or decreases in fair value would impact earnings and cash flows only if Laclede Gas were to reacquire any of these issues in the open market prior to maturity. Under GAAP applicable to Laclede Gas regulated operations, losses or gains on early redemptions of long-term debt would typically be deferred as regulatory assets or regulatory liabilities and amortized over a future period.
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