Laclede Group Q1 Adj. Profit Misses Estimates, But Revenues Top

(RTTNews) - Laclede Group Inc. (LG) said that net income for the first quarter of fiscal year 2014 increased to $35.6 million, from $25.6 million in the first quarter a year ago. But, net income per share for the quarter declined to $1.09 from $1.14 last year.

Net economic earnings for the first quarter of 2014 were $36.3 million compared to $28.2 million in 2013. Net economic earnings exclude from net income the effect of unrealized gains and losses on energy-related derivatives, as well as integration and transaction costs associated with acquisition, divestiture and restructuring activities. The $8.1 million earnings increase was driven by higher Gas Utility operating results, offset in part by lower Gas Marketing earnings.

On a per-share basis, net economic earnings were $1.11 per share for the first quarter of 2014, compared to $1.25 per share for the same period last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.15 per share for the quarter. Analysts' estimates typically exclude special items. Per share results reflect the impact of the 10 million common shares issued in mid-2013 to finance a portion of the MGE acquisition. It also reflects MGE's less seasonal earnings pattern resulting from its rate design that provides a more even distribution throughout the year.

Total operating revenues for the quarter improved to $468.61 million from last year's $307.00 million. Two analysts estimated revenues of $387.98 million for the quarter.

"We are pleased to report solid growth in our net economic earnings, reflecting both the first full quarter with MGE as part of our Gas Utility operations and a strong start to the heating season. We continue to see positive results from our integration initiatives as we bring our two gas utilities together and nearly double our size. More importantly, we remain on track to meet our goals for 2014,"said Suzanne Sitherwood, president and chief executive officer of The Laclede Group.