Twelve Months Ended Consolidated Results
Total interest charges increased approximately $1.6 million in the 2012 twelve month period compared to 2011. Interest expense related to long term debt decreased approximately $1.7 million due to refinancing of debt at lower interest rates. However, a reduction in deferred carrying charges of approximately $3.5 million, resulting from Iatan 2 and Plum Point carrying charges ending in June 2011, drove interest expense higher when compared to the 2011 period. The Company’s other income and deductions increased earnings around $1.0 million during the 2012 period.
Reconciliation of Earnings Per Share
The following reconciliation of basic earnings per share (EPS) compares the quarter and twelve months ended September 30, 2012 versus September 30, 2011 and is a non-GAAP presentation. The economic substance behind our non-GAAP EPS measure is to present the after tax impact of significant items and components of the statement of income on a per share basis before the impact of additional stock issuances. We believe this presentation is useful to investors because the statement of income does not readily show the EPS impact of the various components, including the effect of new stock issuances. This could limit the readers’ understanding of the reasons for the EPS change from previous years. This information is useful to management, and we believe this information is useful to investors, to better understand the reasons for the fluctuation in EPS between the prior and current years on a per share basis.In addition, although a non-GAAP presentation, we believe the presentation of gross margin (reflected in the table below and elsewhere in this press release) is useful to investors and others in understanding and analyzing changes in our operating performance from one period to the next, and have included the analysis as a complement to the financial information we provide in accordance with GAAP.