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The Laclede Group Reports Solid Fiscal 2012 Performance

           The Laclede Group Reports Solid Fiscal 2012 Performance

Fourth Quarter Earnings Improve On Lower Expenses

PR Newswire

ST. LOUIS, Nov. 19, 2012

ST. LOUIS, Nov. 19, 2012 /PRNewswire/ --The Laclede Group, Inc. (NYSE: LG)
today reported overall solid operating results for its fourth quarter and
fiscal year ended September 30, 2012. Highlights include:

All amounts per diluted share          Three Months Ended  Twelve Months Ended
                                       September 30        September 30
                                       2012      2011      2012      2011
Earnings (Loss) Per Share (GAAP)       $ (0.03)  $ (0.13)  $ 2.79    $ 2.86
       Net Adjustments to GAAP         $ 0.05   $ (0.01)            $ (0.07)
       Earnings
Net Economic Earnings (Loss) Per Share $ 0.02   $ (0.14)  $ 2.79    $ 2.79
(non-GAAP)*
       Earnings from 2011 Propane Sale                               $ (0.27)
Net Economic Earnings Per Share                            $ 2.79    $ 2.52
Excluding 2011 Propane Sale (non-GAAP)

* See "Net Economic Earnings and Reconciliation to GAAP" on page 9.

Fiscal 2012

The Laclede Group's consolidated net income for its fiscal year ended
September 30, 2012, was $62.6 million ($2.79 diluted earnings per share)
compared to $63.8 million ($2.86 per share) for fiscal 2011. Fiscal 2012 net
economic earnings were $62.6 million ($2.79 per share) compared to $62.4
million ($2.79 per share) last year. Excluding the impact of last year's
propane sale, net economic earnings (non-GAAP) grew by $6.3 million or 11%.
Both of The Laclede Group's primary business segments, Regulated Gas
Distribution and Non-Regulated Gas Marketing, reported increases in
year-over-year net income and net economic earnings.

Fourth Quarter

For its fiscal fourth quarter ended September 30, 2012, The Laclede Group
reported a consolidated net loss of $0.7 million ($0.03 per share) compared to
a net loss of $2.9 million ($0.13 per share) for the same period last year.
Net economic earnings (non-GAAP) for the quarter were $0.4 million ($0.02 per
share), compared to a loss of $3.1 million ($0.14 per share) last year. The
improved results were mainly attributable to the effect of lower seasonal
losses reported by the Regulated Gas Distribution segment, partially offset by
reduced earnings reported by the Non-Regulated Gas Marketing segment. The
Company's earnings are seasonal in nature, and generally correspond to demand
for natural gas in the heating season.

"In addition to having a solid year financially, we made excellent progress on
our strategic growth initiatives, including making investments to upgrade our
pipeline distribution network and IT system," said Suzanne Sitherwood,
president and chief executive officer of The Laclede Group. "We also realigned
our organizational structure and leadership team including the October 1st
appointment of Steven Lindsey as Executive Vice President and Chief Operating
Officer of Distribution Operations. We are positioned to continue to deliver
excellent customer service and to pursue growth opportunities in the natural
gas marketplace," she added.

REGULATED GAS DISTRIBUTION SEGMENT

Fiscal 2012

Operating revenues for this segment, representing the regulated gas operations
of Laclede Gas Company, The Laclede Group's core utility subsidiary, decreased
16% to $763.4 million in fiscal 2012. This decrease from the prior fiscal year
was primarily due to lower sales volumes resulting from record warm
temperatures in the utility's service territory during the 2011-2012 heating
season and lower natural gas commodity prices. The effect of reduced commodity
prices on operating revenues was matched by a like reduction in natural gas
expense, and had no direct impact on earnings.

Net income was $48.2 million for fiscal 2012, compared to $46.9 million for
fiscal 2011. Net income increased primarily due to lower maintenance and
customer service expenses and higher Infrastructure System Replacement
Surcharge (ISRS) revenues. These factors were partially offset by the adverse
effects of significantly warmer weather near the end of the heating season and
higher benefit costs.

Fourth Quarter

Earnings are seasonal in nature and generally correspond with the heating
season and, as a result, this segment typically reports a net loss in its
fiscal fourth quarter. The Regulated Gas Distribution segment reported a net
loss totaling $3.2 million for the quarter ended September 30, 2012, compared
to a net loss of $6.1 million for the same period last year. The improvement
was primarily due to increased ISRS revenues, higher net investment gains, and
lower maintenance and customer service expenses.

Laclede Gas also continued to invest in its distribution system to enhance
safety and reliability for its customers and in state-of-the-art technology to
provide better service to its customers and to support future growth. For more
information on capital expenditures, see the Cash Flows and Capital Structure
section presented below.

NON-REGULATED GAS MARKETING SEGMENT

Fiscal 2012

The Non-Regulated Gas Marketing segment includes the operating results of
Laclede Energy Resources, Inc. (LER), Laclede Group's non-regulated natural
gas service provider. Operating revenues for this segment decreased by 46%
from the prior year due to lower per unit natural gas commodity prices, as
well as recording a higher percentage of its revenues and natural gas expenses
on a net rather than gross basis in 2012 compared to 2011. While LER continues
to specialize in procuring and delivering natural gas to meet its customers'
needs, the impact on the marketplace of the abundance of natural gas supply
has resulted in LER also purchasing and selling natural gas at the same
location. In accordance with GAAP, some of these activities are recorded on a
net basis, and while this reduces reported operating revenues, it has no
direct impact on earnings.

The Non-Regulated Gas Marketing segment reported net income of $12.3 million
for fiscal 2012, compared to $10.4 million for the prior year. Net economic
earnings (non-GAAP) were $12.3 million for 2012 compared to $9.0 million for
2011, with the improvement primarily due to lower transportation costs
resulting from the renewal of contracts. On a GAAP basis, net income was also
adversely impacted by the effect of lower net unrealized gains on
energy-related derivatives compared to fiscal 2011.

Fourth Quarter

Net income for the quarter ended September 30, 2012 totaled $1.6 million,
compared to $3.2 million for the same period last year. Net economic earnings
(non-GAAP) totaled $2.7 million for the three months ended September 30, 2012,
compared to $2.9 million for the same period last year. On a net economic
earnings basis, the effect of lower sales margins was largely offset by
increased transaction volumes. On a GAAP basis, the reduction in net income
compared to the prior-year quarter was also attributable to higher net
unrealized losses on energy-related derivatives.

OTHER

Net income reported by The Laclede Group's other operating segments decreased
$4.4 million in fiscal 2012, compared to fiscal 2011, largely due to the
effect of last year's $6.1 million in earnings from the non-regulated propane
sale in April 2011. There was no sale of propane inventories in fiscal 2012.
Net income for the quarter ended September 30, 2012 increased $0.9 million
compared to the same quarter last year.

CASH FLOWS AND CAPITAL STRUCTURE

Net cash provided by operating activities for fiscal 2012 was $128.1 million
compared to $167.2 million for fiscal 2011. The decrease is primarily
attributable to the timing of collections of gas cost under Laclede Gas's
Purchased Gas Adjustment Clause, including the net effect of increased cash
payments for margin deposits associated with the use of natural gas derivative
instruments and changes in the cost of natural gas storage inventories. The
decrease is also attributable to the effect of the non-regulated propane sale
in fiscal 2011 and increased cash payments for the funding of pension plans in
fiscal 2012. Excluding temporary changes in working capital, such as the
effect of regulatory timing differences in the recovery of certain costs and
the timing of cash payments for income taxes, operating cash flows (non-GAAP)
for fiscal 2012 were $104.0 million, which was comparable to $107.0 million in
the prior year. See reconciliation of Operating Cash Flows (non-GAAP) to Net
Cash Provided by Operating Activities (GAAP) on page 10.

Capital expenditures for fiscal 2012 and 2011 were $108.8 million and $67.6
million, respectively. The increase primarily reflects significant investments
in information technology as Laclede Gas continues on its previously announced
multi-year upgrade of its technology platforms. In addition, Laclede Gas
accelerated the replacement of portions of its distribution system totaling 41
miles of main in fiscal 2012, up from 20 miles in the prior year.

The Laclede Group maintains a strong capital structure, which at September 30,
2012, consisted of 36% long-term debt (excluding the current portion that was
retired in October 2012), down from 39% at the end of fiscal 2011. Similarly,
short-term debt outstanding was $40.1 million at September 30, 2012, down from
$46.0 million at September 30, 2011. The Company's objective is to maintain a
strong balance sheet, and as previously disclosed, it entered into certain
debt commitments during the fourth quarter of fiscal 2012 to borrow $125
million at rates between 3.0% and 3.4% per annum, with funding delayed until
December 2012 and March 2013.

For additional details on The Laclede Group's fiscal results for the fourth
quarter and year-end 2012, please see the accompanying Statements of
Consolidated Income, Condensed Consolidated Balance Sheets, and Condensed
Consolidated Statements of Cash Flows.

CONFERENCE CALL AND WEBCAST

At 9 a.m. Central (10 a.m. Eastern) today, the Company will host a conference
call to discuss its fiscal 2012 fourth quarter and full-year financial
results. To access the call, please dial the number below 5-10 minutes prior
to the start time.

U.S.:          1-877-317-6789
Canada:        1-866-605-3852
International: 1-412-317-6789

The call will also be webcast in a listen-only format for the media and
general public. The webcast can be accessed at www.TheLacledeGroup.com under
the Investor Services tab.

A replay of the call will be available beginning at 11 a.m. Central (12 Noon
Eastern) on November 19 and continuing until December 20, 2012, by dialing
1-877-344-7529 (U.S.) or 1-412-317-0088 (Canada/International). The Conference
ID is 10020874. The webcast will be available for replay beginning November
19, at www.TheLacledeGroup.com.

ABOUT THE LACLEDE GROUP

Headquartered in St. Louis, Missouri, The Laclede Group, Inc. is a public
utility holding company. Its subsidiary, Laclede Gas Company, the regulated
operations of which are included in the Regulated Gas Distribution segment,
serves approximately 628,000 residential, commercial and industrial customers
in St. Louis City and parts of 10 counties in eastern Missouri. The Laclede
Group's primary non-utility business, Laclede Energy Resources, Inc., included
in the Non-Regulated Gas Marketing segment, provides non-regulated natural gas
services. The Laclede Group, Inc. is committed to pursuing growth through 1)
developing and investing in emerging technologies; 2) investing in
infrastructure; 3) acquiring businesses to which the Company can apply its
operating model, and 4) leveraging its current business unit competencies. For
more information about The Laclede Group and its subsidiaries, visit
www.TheLacledeGroup.com.

CAUTIONARY STATEMENTS ON FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES

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, economic factors, the competitive environment, and governmental
and regulatory policy and action. For a more complete description of these
uncertainties and risk factors, see the Company's Form 10-Q for the quarter
ended June 30, 2012, filed with the Securities and Exchange Commission.

This news release includes the non-GAAP financial measures of "net economic
earnings," "net economic earnings per share," and "net economic earnings per
share excluding 2011 propane sale." Management also uses these non-GAAP
measures internally when evaluating the Company's performance. Net economic
earnings exclude from net income the after-tax impacts of fair value
accounting and timing adjustments associated with energy-related transactions.
These adjustments, which primarily impact the Non-Regulated Gas Marketing
segment, include net unrealized gains and losses on energy-related derivatives
resulting from the current changes in the fair value of financial and physical
transactions prior to their completion and settlement, lower of cost or market
inventory adjustments, and realized gains and losses on economic hedges prior
to the sale of the physical commodity. In calculating net economic earnings,
management also excludes from net income the after-tax costs related to
acquisition, divestiture, and restructuring activities, if any. "Net economic
earnings per share excluding 2011 propane sale," which excludes the impact of
the Company's sale of excess propane inventory, provides a more comparable
analysis of year-to-year results. Management believes that excluding these
items provides a useful representation of the economic impact of actual
settled transactions and overall results of ongoing operations. These internal
non-GAAP operating metrics should not be considered as an alternative to, or
more meaningful than, GAAP measures such as net income.

This news release also includes the non-GAAP financial measure of "Operating
Cash Flows." Management also uses this measure internally when evaluating
longer-term cash flow impacts. This measure excludes the effects of temporary
changes in working capital, such as the effect of regulatory timing
differences in the recovery of certain costs and the timing of cash payments
for income taxes. Management believes that excluding these items provides a
useful representation of the economic impact of longer-term cash flows
generated from business activities. This internal non-GAAP cash flow metric
should not be considered as an alternative to, or more meaningful than, GAAP
measures such as net cash provided by operating activities.

STATEMENTS OF CONSOLIDATED INCOME

THE LACLEDE GROUP, INC.

(Thousands, Except Per Share Amounts)
                               Three Months Ended     Twelve Months Ended

                               September 30,          September 30,
                               2012        2011       2012         2011
OPERATING REVENUES
  Regulated Gas Distribution   $  97,466   $ 95,949   $ 763,447    $ 913,190
  Non-Regulated Gas Marketing     70,109     173,547    358,145      669,375
  Other                           1,963      1,550      3,883        20,742
   Total Operating       169,538    271,046    1,125,475    1,603,307
  Revenues
OPERATING EXPENSES
  Regulated Gas Distribution
   Natural and propane gas      32,748     39,244     397,304      549,947
   Other operation expenses     36,193     36,597     144,440      147,889
   Maintenance                  6,130      6,536      22,911       25,049
   Depreciation and             10,289     9,981      40,739       39,214
  amortization
   Taxes, other than income     8,070      7,986      53,672       60,752
  taxes
   Total Regulated
  Gas Distribution Operating      93,430     100,344    659,066      822,851
  Expenses
  Non-Regulated Gas Marketing     73,499     168,332    353,283      652,567
  Other                           740        571        2,524        9,642
   Total Operating       167,669    269,247    1,014,873    1,485,060
  Expenses
Operating Income                  1,869      1,799      110,602      118,247
Other Income and (Income          (499)      (2,292)    3,272        177
Deductions) - Net
Interest Charges:
  Interest on long-term debt      5,740      5,740      22,958       23,161
  Other interest charges          446        555        1,987        2,256
   Total Interest         6,186      6,295      24,945       25,417
  Charges
Income (Loss) Before Income       (4,816)    (6,788)    88,929       93,007
Taxes
Income Tax Expense (Benefit)      (4,165)    (3,961)    26,289       29,182
Net Income (Loss)              $  (651)    $ (2,827)  $ 62,640     $ 63,825
Weighted Average Number of
Common Shares Outstanding:
 Basic                            22,318     22,136     22,262       22,099
 Diluted                          22,318     22,136     22,340       22,171
Basic Earnings (Loss) Per      $  (0.03)   $ (0.13)   $ 2.80       $ 2.87
Share of Common Stock
Diluted Earnings (Loss) Per    $  (0.03)   $ (0.13)   $ 2.79       $ 2.86
Share of Common Stock



CONDENSED CONSOLIDATED BALANCE SHEETS

THE LACLEDE GROUP, INC.

(Thousands)
                                          September 30,
                                                            September 30, 2011
                                          2012
ASSETS
Utility Plant                             $  1,497,419      $     1,386,590
Less: Accumulated depreciation and          478,120              457,907
amortization
 Net Utility Plant                      1,019,299            928,683
Other Property and Investments               56,814               55,373
Current Assets:
 Cash and cash equivalents                  27,457               43,277
 Accounts receivable (net of allowance      133,842              124,483
for doubtful accounts)
 Inventories                                106,472              128,360
 Other                                      75,245               73,014
 Total Current Assets               343,016              369,134
Regulatory assets and other deferred         461,133              429,892
charges
Total Assets                              $  1,880,262      $     1,783,082
CAPITALIZATION AND LIABILITIES
Capitalization:
 Common stock and paid-in capital        $   191,146       $     186,133
 Retained earnings                           414,581             389,298
 Accumulated other comprehensive loss        (4,116)             (2,100)
 Total Common Stock Equity               601,611             573,331
 Long-term debt (less current portion)       339,416             364,357
– Laclede Gas
 Total Capitalization                    941,027             937,688
Current Liabilities:
 Notes payable                               40,100              46,000
 Accounts payable                            89,503              96,561
 Advance customer billings                   25,146              15,230
 Current portion of long-term debt           25,000              —
 Accrued liabilities and other               72,375              74,143
 Total Current Liabilities               252,124             231,934
Deferred Credits and Other Liabilities:
 Deferred income taxes and unamortized       358,622             318,731
investment tax credits
 Pension and postretirement benefit          196,558             185,701
costs
 Regulatory liabilities                      56,319              50,846
 Asset retirement obligations and other      75,612              58,182
 Total Deferred Credits and Other        687,111             613,460
Liabilities
Total Capitalization and Liabilities      $   1,880,262     $     1,783,082



CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

THE LACLEDE GROUP, INC.

(Thousands)
                                                     Twelve Months Ended
                                                     September 30,
                                                     2012          2011
Operating Activities:
 Net Income                                         $ 62,640      $ 63,825
 Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
 Depreciation, amortization, and accretion          41,339        39,764
 Deferred income taxes and investment tax           30,554        23,885
credits
 Other – net                                        75            3,431
 Changes in assets and liabilities                  (6,507)       36,282
 Net cash provided by operating activities    128,101       167,187
Investing Activities:
 Capital expenditures                                 (108,843)     (67,638)
 Other investments                                    3,439         631
 Net cash used in investing activities        (105,404)     (67,007)
Financing Activities:
 Maturity of first mortgage bonds                     –             (25,000)
 Repayment of short-term debt – net                   (5,900)       (83,650)
 Issuance of common stock                             4,311         2,549
 Dividends paid                                       (36,896)      (35,821)
 Other                                                (32)          (1,900)
 Net cash used in financing activities        (38,517)      (143,822)
Net Decrease in Cash and Cash Equivalents              (15,820)      (43,642)
Cash and Cash Equivalents at Beginning of Period       43,277        86,919
Cash and Cash Equivalents at End of Period           $ 27,457      $ 43,277



NET ECONOMIC EARNINGS AND RECONCILIATION TO GAAP

THE LACLEDE GROUP, INC.

(Millions, except per share amounts)
                  Regulated    Non-                              Per

                  Gas          Regulated     Other     Total     Share Amounts
                                                                 (2)
                  Distribution Gas Marketing
Quarter Ended
September 30,
2012
 Net Economic
 Earnings (Loss)    $  (3.3)      $  2.7      $ 1.0     $ 0.4      $  0.02
 (Non-GAAP)
 Add: Unrealized
 gain (loss) on        0.1           (1.1)      –         (1.0)       (0.04)
 energy-related
 derivatives (1)
 Add: Lower of
 cost or market        –             0.1        –         0.1         –
 inventory
 adjustments (1)
 Add: Realized
 loss on economic
 hedges prior to       –             (0.1)      –         (0.1)       –
 the sale of the
 physical
 commodity (1)
 Add:
 Acquisition,
 divestiture and       –             –          (0.1)     (0.1)       (0.01)
 restructuring
 activities (1)
 Net Income         $  (3.2)      $  1.6      $ 0.9     $ (0.7)    $  (0.03)
 (Loss) (GAAP)
 Net Economic EPS   $  (0.15)     $  0.12     $ 0.05    $ 0.02
 (Non-GAAP) (2)
 Diluted EPS        $  (0.14)     $  0.07     $ 0.04    $ (0.03)
 (GAAP)
Quarter Ended
September 30,
2011
 Net Economic
 Earnings           $  (6.1)      $  2.9      $ 0.1     $ (3.1)    $  (0.14)
 (Non-GAAP)
 Add: Unrealized
 gain on               –             0.3        –         0.3         0.01
 energy-related
 derivatives (1)
 Net Income         $  (6.1)      $  3.2      $ 0.1     $ (2.8)    $  (0.13)
 (GAAP)
 Net Economic EPS   $  (0.27)     $  0.13     $ –       $ (0.14)
 (Non-GAAP) (2)
 Diluted EPS        $  (0.27)     $  0.15     $ (0.01)  $ (0.13)
 (GAAP)
Twelve Months
Ended September
30, 2012
 Net Economic
 Earnings           $  48.1       $  12.3     $ 2.2     $ 62.6     $  2.79
 (Non-GAAP)
 Add: Unrealized
 gain on               0.1           0.2        –         0.3         0.02
 energy-related
 derivatives (1)
 Add: Realized
 loss on economic
 hedges prior to       –             (0.2)      –         (0.2)       (0.01)
 the sale of the
 physical
 commodity (1)
 Add:
 Acquisition,
 divestiture and       –             –          (0.1)     (0.1)       (0.01)
 restructuring
 activities (1)
 Net Income         $  48.2       $  12.3     $ 2.1     $ 62.6     $  2.79
 (GAAP)
 Net Economic EPS   $  2.14       $  0.55     $ 0.10    $ 2.79
 (Non-GAAP) (2)
 Diluted EPS        $  2.15       $  0.55     $ 0.09    $ 2.79
 (GAAP)
Twelve Months
Ended September
30, 2011
 Net Economic
 Earnings           $  46.9       $  9.0      $ 6.5     $ 62.4     $  2.79
 (Non-GAAP)
 Add: Unrealized
 gain on               –             1.4        –         1.4         0.07
 energy-related
 derivatives (1)
 Net Income         $  46.9       $  10.4     $ 6.5     $ 63.8     $  2.86
 (GAAP)
 Net Economic EPS   $  2.10       $  0.40     $ 0.29    $ 2.79
 (Non-GAAP) (2)
 Diluted EPS        $  2.10       $  0.47     $ 0.29    $ 2.86
 (GAAP)

(1) Amounts presented net of income taxes, which were calculated by applying
federal, state, and local income tax rates applicable to ordinary income to
the amounts of the pre-tax reconciling items. For the quarters ended September
30, 2012 and 2011, the total net income tax (benefit) expense included in the
reconciling items is $(0.7) million and $0.2 million, respectively. For the
twelve months ended September 30, 2012, the total net income tax expense
included in the reconciling items is negligible but is $0.9 million for the
twelve months ended September 30, 2011.
(2) Consolidated net economic earnings per share (EPS) are calculated by
replacing consolidated net income (loss) with consolidated net economic
earnings (loss) in the GAAP diluted EPS calculation.
Note: EPS amounts by segment represent contributions to The Laclede Group's
consolidated EPS.



OPERATING CASH FLOWS AND RECONCILIATION TO GAAP

THE LACLEDE GROUP, INC.

(Millions)
                                                         Twelve Months Ended
                                                         September 30,
                                                         2012        2011
Operating Cash Flows (Non-GAAP)                          $ 104.0     $ 107.0
Add (deduct):
 Changes in assets and liabilities                  (6.5)       36.3
 Deferred income taxes and investment tax           30.6        23.9
credits
Net cash provided by operating activities (GAAP)         $ 128.1     $ 167.2
Net cash used in investing activities (GAAP)             $ (105.4)   $ (67.0)
Net cash used in financing activities (GAAP)             $ (38.5)    $ (143.8)

SOURCE The Laclede Group, Inc.

Website: http://www.TheLacledeGroup.com
Contact: Investors, Scott W. Dudley, Jr., +1-314-342-0878,
sdudley@lacledegas.com, or Media, Jessica B. Willingham, +1-314-342-3300,
jwillingham@lacledegas.com