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The Empire District Electric Company Earnings Report

Stocks in this article: EDE

The Empire District Electric Company (NYSE:EDE), an operator of regulated electric, gas and water utilities, announced today the results for the quarter and twelve months ended June 30, 2011.

Highlights

  • The Company reported consolidated earnings for the second quarter of 2011 of $9.2 million, or $0.22 per share, compared with 2010 same quarter earnings of $7.4 million, or $0.18 per share. Earnings for the twelve months ended June 30, 2011 were $52.5 million, or $1.26 per share. This compares to earnings of $38.7 million, or $1.03 per share, for the 2010 twelve month period.
  • On May 22, 2011, the Joplin, Missouri area suffered significant damage from a powerful EF-5 tornado. As a result, approximately 4,200 residential, commercial and industrial customers remain unable to return to service due to damaged or destroyed structures. Storm restoration costs are estimated at $20 million to $30 million, of which $18 million has been incurred to date. The majority of these costs have been capitalized. The immediate loss of revenue associated with the tornado was offset by rate increases that became effective during 2010 and early 2011, increased usage due to storm recovery efforts and near-record hot weather during the month of June. The Company however expects a continuing loss of electric load and corresponding revenues over the next several months as customers rebuild.
  • In response to the expected loss of electric revenues, our current level of retained earnings and other relevant factors, the Company announced shortly after the tornado the suspension of the quarterly dividend for the third and fourth quarters of 2011. Based on current conditions and knowledge, at today’s meeting the Company’s Board of Directors reaffirmed their expectation to re-establish the dividend at an approximate level of $0.25 per quarter after this two quarter suspension.
  • On June 15, 2011, the Company implemented rate increases resulting from a settlement agreement approved by the Missouri Public Service Commission (MPSC) equivalent to an estimated $18.7 million of additional annual revenue. As part of this settlement approved by the MPSC, construction accounting and $14.5 million of annualized regulatory amortization expense ceased. This increase resulted from the Company’s September 28, 2010 rate request filing which corresponded with completion of the construction cycle described in our Regulatory Plan approved by the MPSC in August 2005. The increase reflects investments related to the Iatan 2 Generating Station.
  • The Company recently filed a rate request with the Kansas Corporation Commission (KCC) seeking an annual increase in electric customer revenues of approximately $1.5 million, or 6.39%. The filing seeks to recover the remaining costs associated with the Company’s investment in Iatan 1, Iatan 2 and Plum Point Generating Stations, and other costs deferred since the units were placed in service. On June 30, 2011, the Company filed a true-up request with the Oklahoma Corporation Commission (OCC) for an annual increase in base rates for our Oklahoma customers in the amount of $0.6 million, or 4.1%.
 
THE EMPIRE DISTRICT ELECTRIC COMPANY

SEGMENT FINANCIAL HIGHLIGHTS

(in 000’s except per share information, certain segment amounts exclude eliminations )

    Quarter Ended June 30, 2011
    Electric   Gas   Other   Consolidated
Revenues   $ 120,329   $ 7,303     $ 1,609   $ 129,093

Fuel, Purchased Power, and Cost of Natural Gas Sold and Transported

    47,228     2,712       ––     49,940
Other Operating Expenses     55,306     3,663       1,198     60,019
Operating Income     17,795     928       411     19,134
Net Income   $ 8,792   $ (27 )   $ 410   $ 9,175

Earnings Per Weighted-Average Share, Basic and Diluted

              $ 0.22
 
THE EMPIRE DISTRICT ELECTRIC COMPANY

SEGMENT FINANCIAL HIGHLIGHTS

(in 000’s except per share information, certain segment amounts exclude eliminations )

    Quarter Ended June 30, 2010
    Electric   Gas   Other   Consolidated
Revenues   $ 106,686   $ 6,516     $ 1,428   $ 114,482

Fuel, Purchased Power, and Cost of Natural Gas Sold and Transported

    44,255     2,265       ––     46,520
Other Operating Expenses     49,043     3,708       1,080     53,683
Operating Income     13,388     543       348     14,279
Net Income   $ 7,405   $ (372 )   $ 336   $ 7,369

Earnings Per Weighted-Average Share, Basic and Diluted

              $ 0.18
       




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