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The Empire District Electric Company 2012 Earnings Report And 2013 Earnings Guidance

Stocks in this article: EDE

2012 Fourth Quarter Results

Electric segment gross margin grew slightly during the quarter ending December 31, 2012 compared to the 2011 quarter, reflecting decreased revenues of approximately $3.9 million and a decrease in fuel and purchased power costs of approximately $4.4 million. The impact of milder weather experienced during the 2012 quarter was offset by improving customer counts. Lower electric fuel costs during the 2012 period drove a reduction in the fuel cost component included in electric customer rates, lowering revenue and fuel expense. Gas segment gross margin was relatively unchanged quarter over quarter.

Operating and maintenance expenses were lower during the fourth quarter 2012 compared to 2011, positively impacting earnings. Depreciation increased during the 2012 quarter, driven by higher levels of plant in service. Taxes increased during the quarter, but were more than offset by decreases in interest and other expenses, reflecting lower long-term debt interest expenses and an increase in AFUDC.

Consolidated net income was higher by $0.9 million during the 2012 fourth quarter compared to 2011.

Selected unaudited consolidated financial data for the quarters and years ended December 31, 2012 and 2011 is presented in the following table.

   

(dollars in millions, except Per Share data)

 
Three Months Ended

December 31,

Twelve Months Ended

December 31,

2012   2011   Change* 2012   2011   Change*
Electric Revenues $ 114.1   $ 118.0   $ (3.9 ) $ 510.7   $ 524.3   $ (13.6 )
Electric Fuel and Purchased Power   40.1     44.5     (4.4 )   178.9     200.3     (21.4 )
Electric Margin 74.0 73.5 0.5 331.8 324.0 7.8
 
Gas Revenues 13.3 13.1 0.3 39.8 46.4 (6.6 )
Cost of Gas Sold and Transported   7.0     6.8     0.3     18.6     22.8     (4.2 )
Gas Margin 6.3 6.3 0.0 21.2 23.6 (2.4 )
 
Other Revenues   1.7     1.7     0.0     6.6     6.2     0.4  
Gross Margin   82.0     81.5     0.5     359.6     353.8     5.8  
 
Operating and Maintenance Expenses 34.3 35.3 (1.0 ) 137.5 128.6 8.9
Depreciation and Amortization 15.3 14.5 0.8 60.4 63.5 (3.1 )
Taxes 13.0 12.1 0.9 65.4 64.8 0.6
Interest Expense and Other, net   9.8     10.9     (1.1 )   40.6     42.0     (1.4 )
Net Income $ 9.6   $ 8.7   $ 0.9   $ 55.7   $ 54.9   $ 0.8  
 
Earnings Per Share $ 0.23 $ 0.21 $ 0.02 $ 1.32 $ 1.31 $ 0.01
 
 
Three Months Ended

December 31,

Twelve Months Ended

December 31,

2012   2011   Change* 2012   2011   Change*
Electric On-System kWh Sales ( in millions):
Residential 412 413 (0.2 %) 1,851 1,983 (6.7 %)
Commercial/Industrial 617 619 (0.3 %) 2,587 2,599 (0.5 %)
Other   111     113     (1.8 %)   477     493     (3.3 %)
Total On-System Electric Sales   1,140     1,145     (0.4 %)   4,915     5,075     (3.2 %)
 
Retail Gas Sales ( billion cubic feet):
Residential 0.79 0.77 2.4 % 2.01 2.56 (21.4 %)
Commercial/Industrial 0.38 0.38 (0.8 %) 1.11 1.37 (19.1 %)
Other   0.01     0.01     (5.7 %)   0.02     0.03     (39.5 %)
Total Retail Gas Sales   1.18     1.16     1.28 %   3.14     3.96     (20.7 %)
 

* Slight differences from actual results may result due to rounding.

 

Reconciliation of Earnings Per Share

   

Quarter Ended

Year Ended

Basic Earnings Per Share – December 31, 2011 $ 0.21 $ 1.31
Revenues
Electric segment (0.05 ) (0.20 )
Gas segment 0.00 (0.10 )
Other segment   0.00     0.01  
Total Revenue (0.05 ) (0.29 )
 

Electric Fuel and Purchased Power

0.06

0.31

Cost of Natural Gas Sold and Transported   0.00     0.06  
Gross Margin 0.01 0.08
 
Expenses
Operating – electric segment (0.01 ) (0.13 )
Operating – gas segment 0.00 0.00
Operating – other segment 0.00 (0.01 )
Maintenance and repairs 0.02 0.01
Depreciation and amortization (0.01 ) 0.05
Change in effective income tax rates 0.01 0.01
Other taxes (0.01 ) (0.01 )
Other income and deductions (0.01 ) 0.00
Interest charges 0.01 0.00
AFUDC 0.01 0.02
Dilutive effect of additional shares   0.00     (0.01 )
 
Basic Earnings Per Share – December 31, 2012 $ 0.23   $ 1.32  
 




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