ST. LOUIS, Oct. 30 /PRNewswire-FirstCall/ -- The Laclede Group, Inc. (NYSE:LG) reported today its seventh consecutive fiscal year of record earnings for fiscal 2009, which ended September 30, excluding the fiscal 2008 operating results and net gain on the sale of SM&P Utility Resources. Consolidated income from continuing operations for fiscal 2009 increased 12 percent to $64.2 million, or $2.92 diluted earnings per share, compared to $57.5 million, or $2.64 diluted earnings per share, reported for fiscal 2008. This increase was principally due to higher earnings from Laclede Energy Resources, Inc. (LER), The Laclede Group's non-regulated natural gas commodity service provider. Fiscal 2008's results of $3.58 diluted earnings per share on an as-reported basis included the operating results and the March 31, 2008 sale of SM&P Utility Resources, Inc, The Laclede Group's former wholly owned subsidiary, which contributed $0.94 to diluted earnings per share in the prior fiscal year. The results for fiscal 2008 also included $2.9 million, or $0.13 diluted earnings per share, in certain tax-related benefits. As a result, The Laclede Group posted total earnings of $77.9 million for fiscal 2008. For the three months ended September 30, 2009, the Company posted a loss of $4.7 million, or ($0.22) diluted earnings per share, compared to a loss of $3.6 million, or ($0.16) diluted earnings per share, for the same quarter last year. The Company frequently reports a loss in its fourth quarter because of lower gas usage by its utility customers during the summer months. "We are pleased that we posted our seventh consecutive year of record earnings, despite the fact that the U.S. economy remains in one of the most difficult periods since the Great Depression," said Douglas H. Yaeger, chairman, president and chief executive officer of The Laclede Group. "During this period, we have continued to work to strengthen our balance sheet and improve free cash flow. Future results will be impacted by the timing and sustainability of the economy's recovery as well as changes in the gas markets." RESULTS OF OPERATIONS Laclede Energy Resources For fiscal 2009, LER reported earnings of $31.4 million, an increase of 63 percent when compared to last year. This represents a contribution of $1.43 to consolidated diluted earnings per share for this year as compared to $0.88 diluted earnings per share for last year. LER's higher earnings for the full year reflect its strategic acquisition of additional firm pipeline transportation capacity prior to the 2008-2009 winter. This capacity, along with lower natural gas costs, supported higher sales volumes and greater margins this year when compared to last year. Last year's results also reflected the impact of $1.3 million, or $0.06 diluted earnings per share, in certain tax-related benefits. LER reported earnings totaling $4.0 million, or $0.18 diluted earnings per share, for the fiscal 2009 fourth quarter, a decrease of 12 percent compared to the year-ago quarter. Earnings for the most recent quarter reflect decreased sales margins, partially offset by higher sales volumes of natural gas. The lower margins were driven primarily by reduced regional price differentials that currently prevail in the marketplace. Laclede Gas Company Laclede Gas Company, The Laclede Group's core subsidiary and Missouri's largest natural gas distribution utility, reported earnings of $33.2 million for fiscal 2009, a decrease of 15 percent compared to the previous fiscal year. The utility contributed $1.51 to consolidated diluted earnings per share for this year as compared to $1.80 diluted earnings per share for last year. The decrease in earnings was primarily attributable to increased operating and maintenance expenses, partially offset by higher revenue generated by the Infrastructure System Replacement Surcharge (ISRS). Last year's results for the period also reflected the impact of $1.6 million, or $0.07 diluted earnings per share, in certain tax-related benefits. Laclede Gas reported a loss of $7.5 million for the fourth quarter of fiscal 2009, compared to a loss of $7.4 million for the same quarter last year. Laclede Gas contributed ($0.34) to diluted earnings per share during the fourth quarter of both fiscal 2009 and fiscal 2008. As discussed previously, the utility typically experiences losses in the fourth quarter due to lower gas usage by utility customers during the summer months. ABOUT THE LACLEDE GROUP Headquartered in St. Louis, Missouri, The Laclede Group, Inc. is a public utility holding company committed to providing reliable natural gas service through its regulated core utility operations, while also engaging in non-regulated activities that provide opportunities for sustainable growth. Its subsidiary Laclede Gas Company, the regulated operations of which are included in the Regulated Gas Distribution segment, serves approximately 630,000 residential, commercial and industrial customers in the city of St. Louis, St. Louis County and nine other counties in Eastern Missouri. The Laclede Group's primary non-regulated business, Laclede Energy Resources, Inc., is included in the Non-Regulated Gas Marketing segment and serves wholesale, large commercial and industrial customers throughout the Midwest. For more information about The Laclede Group and its subsidiaries, visit http://www.thelacledegroup.com/. The Laclede Group's earnings are seasonal in nature and generally correspond with the heating season for Laclede Gas Company, its largest subsidiary. For additional details on The Laclede Group's fiscal 2009 fourth-quarter and full-year results, please see the accompanying unaudited Statements of Consolidated Income. CAUTIONARY STATEMENTS ON FORWARD-LOOKING INFORMATION 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 period ended June 30, 2009, filed with the Securities and Exchange Commission. UNAUDITED STATEMENTS OF CONSOLIDATED INCOME THE LACLEDE GROUP, INC. (Thousands, Except Per Share Amounts) Three Months Ended Twelve Months Ended September 30, September 30, ------------- ------------- 2009 2008 2009 2008 OPERATING REVENUES Regulated Gas Distribution $95,092 $110,708 $1,053,993 $1,128,287 Non-Regulated Gas Marketing 155,794 340,014 836,865 1,075,845 Other 1,044 1,067 4,340 4,841 ----- ----- ----- ----- Total Operating Revenues 251,930 451,789 1,895,198 2,208,973 ------- ------- --------- --------- OPERATING EXPENSES Regulated Gas Distribution Natural and propane gas 43,740 56,834 699,984 770,097 Other operation expenses 36,090 36,124 146,542 144,611 Maintenance 7,364 7,235 27,818 25,827 Depreciation and amortization 9,262 9,008 36,751 35,303 Taxes, other than income taxes 8,244 8,538 68,639 69,023 ----- ----- ------ ------ Total Regulated Gas Distribution Operating Expenses 104,700 117,739 979,734 1,044,861 Non-Regulated Gas Marketing 149,456 333,234 787,056 1,048,162 Other 841 788 3,344 4,603 --- --- ----- ----- Total Operating Expenses 254,997 451,761 1,770,134 2,097,626 ------- ------- --------- --------- Operating Income (Loss) (3,067) 28 125,064 111,347 ------ --- ------- ------- Other Income and (Income Deductions) - Net (864) (1,008) 1,453 1,881 ---- ------ ----- ----- Interest Charges: Interest on long-term debt 6,146 4,974 24,583 19,851 Interest on long-term debt to unconsolidated affiliate trust - - - 486 Other interest charges 612 1,732 5,163 9,140 --- ----- ----- ----- Total Interest Charges 6,758 6,706 29,746 29,477 ----- ----- ------ ------ Income (Loss) from Continuing Operations Before Income Taxes and Dividends on Laclede Gas Redeemable Preferred Stock (10,689) (7,686) 96,771 83,751 Income Tax Expense (Benefit) (5,942) (4,523) 32,509 26,190 Dividends on Laclede Gas Redeemable Preferred Stock - 8 15 35 --- --- --- --- Income (Loss) from Continuing Operations (4,747) (3,171) 64,247 57,526 Income (Loss) from Discontinued Operations, Net of Income Tax - (423) - 20,396 --- ---- --- ------ Net Income (Loss) $(4,747) $(3,594) $64,247 $77,922 ======= ======= ======= ======= Average Number of Common Shares Outstanding: Basic 21,920 21,785 21,893 21,657 Diluted 21,920 21,785 22,024 21,763 Basic Earnings (Loss) Per Share of Common Stock: Income (Loss) from Continuing Operations $(0.22) $(0.14) $2.93 $2.66 Income (Loss) from Discontinued Operations - (0.02) - 0.94 --- ----- --- ---- Net Income (Loss) $(0.22) $(0.16) $2.93 $3.60 ====== ====== ===== ===== Diluted Earnings (Loss) Per Share of Common Stock: Income (Loss) from Continuing Operations $(0.22) $(0.14) $2.92 $2.64 Income (Loss) from Discontinued Operations - (0.02) - 0.94 --- ----- --- ---- Net Income (Loss) $(0.22) $(0.16) $2.92 $3.58 ====== ====== ===== ===== DATASOURCE: The Laclede Group, Inc. CONTACT: Justin Gioia of The Laclede Group, Inc., +1-314-342-0865, Web Site: http://www.thelacledegroup.com/

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