The Empire District Electric Company (EDE, Financial) filed Quarterly Report for the period ended 2012-06-30.
The Empire District Electric Company has a market cap of $906.5 million; its shares were traded at around $21.25 with a P/E ratio of 16.7 and P/S ratio of 1.6. The dividend yield of The Empire District Electric Company stocks is 4.6%. The Empire District Electric Company had an annual average earning growth of 0.6% over the past 10 years.
Revenues for our on-system customers increased $15.9 million for the twelve months ended June 30, 2012 as compared to the same period in 2011. Rate changes, primarily the September 2010 and June 2011 Missouri rate increases, the September 2010 and March 2011 Oklahoma rate increases, the January 2012 Kansas rate increase and the April 2011 Arkansas rate increase, contributed an estimated $36.8 million to revenues. Weather and other related factors decreased revenues an estimated $13.9 million due to the reasons previously discussed. Decreased customer counts, resulting from the May 2011 tornado, reduced revenues an estimated $7.0 million. We estimate that the total impact due to decreased customer counts since the May 2011 tornado reduced revenues approximately $11.4 million through June 30, 2012.
The principal amount of all series of first mortgage bonds outstanding at any one time under the EDE Mortgage is limited by terms of the mortgage to $1 billion. Substantially all of the property, plant and equipment of The Empire District Electric Company (but not its subsidiaries) is subject to the lien of the EDE Mortgage. Restrictions in the EDE mortgage bond indenture could affect our liquidity. The EDE Mortgage contains a requirement that for new first mortgage bonds to be issued, our net earnings (as defined in the EDE Mortgage) for any twelve consecutive months within the fifteen months preceding issuance must be two times the annual interest requirements (as defined in the EDE Mortgage) on all first mortgage bonds then outstanding and on the prospective issue of new first mortgage bonds. Our earnings for the twelve months ended June 30, 2012 would permit us to issue approximately $530.8 million of new first mortgage bonds based on this test with an assumed interest rate of 6.0%. In addition to the interest coverage requirement, the EDE Mortgage provides that new bonds must be issued against, among other things, retired bonds or 60% of net property additions. At June 30, 2012, we had retired bonds and net property additions which would enable the issuance of at least $735.8 million principal amount of bonds if the annual interest requirements are met. As of June 30, 2012, we are in compliance with all restrictive covenants of the EDE Mortgage.
Holders of our common stock are entitled to dividends if, as, and when declared by the Board of Directors, out of funds legally available therefore, subject to the prior rights of holders of any outstanding cumulative preferred stock and preference stock. Payment of dividends is determined by our Board of Directors after considering all relevant factors, including the amount of our retained earnings (which is essentially our accumulated net income less dividend payouts). As of June 30, 2012, our retained earnings balance was $33.1 million, compared to an accumulated deficit of $0.2 million as of June 30, 2011 and a retained earnings balance of $33.7 million as of December 31, 2011, after paying out $21.1 million in dividends during the first six months of 2012. On July 26, 2012, the Board of Directors declared a quarterly dividend of $0.25 per share on common stock payable on September 15, 2012 to holders of record as of September 1, 2012.
Our diluted earnings per share were $0.49 for the six months ended June 30, 2012 and were $1.31 and $1.17 for the years ended December 31, 2011 and 2010, respectively. Dividends paid per share were $0.50 for the six months ended June 30, 2012, $0.64 for the year ended December 31, 2011 and $1.28 for the year ended December 31, 2010.
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The Empire District Electric Company has a market cap of $906.5 million; its shares were traded at around $21.25 with a P/E ratio of 16.7 and P/S ratio of 1.6. The dividend yield of The Empire District Electric Company stocks is 4.6%. The Empire District Electric Company had an annual average earning growth of 0.6% over the past 10 years.
Highlight of Business Operations:
During the second quarter of 2012, basic and diluted earnings per weighted average share of common stock were $0.25 as compared to $0.22 in the second quarter of 2011. For the six months ended June 30, 2012, basic and diluted earnings per weighted average share of common stock were $0.49 as compared to $0.51 for the six months ended June 30, 2011. For the twelve months ended June 30, 2012, basic and diluted earnings per weighted average share of common stock were $1.29 as compared to $1.26 for the twelve months ended June 30, 2011.Revenues for our on-system customers increased $15.9 million for the twelve months ended June 30, 2012 as compared to the same period in 2011. Rate changes, primarily the September 2010 and June 2011 Missouri rate increases, the September 2010 and March 2011 Oklahoma rate increases, the January 2012 Kansas rate increase and the April 2011 Arkansas rate increase, contributed an estimated $36.8 million to revenues. Weather and other related factors decreased revenues an estimated $13.9 million due to the reasons previously discussed. Decreased customer counts, resulting from the May 2011 tornado, reduced revenues an estimated $7.0 million. We estimate that the total impact due to decreased customer counts since the May 2011 tornado reduced revenues approximately $11.4 million through June 30, 2012.
The principal amount of all series of first mortgage bonds outstanding at any one time under the EDE Mortgage is limited by terms of the mortgage to $1 billion. Substantially all of the property, plant and equipment of The Empire District Electric Company (but not its subsidiaries) is subject to the lien of the EDE Mortgage. Restrictions in the EDE mortgage bond indenture could affect our liquidity. The EDE Mortgage contains a requirement that for new first mortgage bonds to be issued, our net earnings (as defined in the EDE Mortgage) for any twelve consecutive months within the fifteen months preceding issuance must be two times the annual interest requirements (as defined in the EDE Mortgage) on all first mortgage bonds then outstanding and on the prospective issue of new first mortgage bonds. Our earnings for the twelve months ended June 30, 2012 would permit us to issue approximately $530.8 million of new first mortgage bonds based on this test with an assumed interest rate of 6.0%. In addition to the interest coverage requirement, the EDE Mortgage provides that new bonds must be issued against, among other things, retired bonds or 60% of net property additions. At June 30, 2012, we had retired bonds and net property additions which would enable the issuance of at least $735.8 million principal amount of bonds if the annual interest requirements are met. As of June 30, 2012, we are in compliance with all restrictive covenants of the EDE Mortgage.
Holders of our common stock are entitled to dividends if, as, and when declared by the Board of Directors, out of funds legally available therefore, subject to the prior rights of holders of any outstanding cumulative preferred stock and preference stock. Payment of dividends is determined by our Board of Directors after considering all relevant factors, including the amount of our retained earnings (which is essentially our accumulated net income less dividend payouts). As of June 30, 2012, our retained earnings balance was $33.1 million, compared to an accumulated deficit of $0.2 million as of June 30, 2011 and a retained earnings balance of $33.7 million as of December 31, 2011, after paying out $21.1 million in dividends during the first six months of 2012. On July 26, 2012, the Board of Directors declared a quarterly dividend of $0.25 per share on common stock payable on September 15, 2012 to holders of record as of September 1, 2012.
Our diluted earnings per share were $0.49 for the six months ended June 30, 2012 and were $1.31 and $1.17 for the years ended December 31, 2011 and 2010, respectively. Dividends paid per share were $0.50 for the six months ended June 30, 2012, $0.64 for the year ended December 31, 2011 and $1.28 for the year ended December 31, 2010.
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