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Empire Electric announced the results for the 2nd Quarter

The Empire District Electric Company is an operator of regulated electric, gas and water utilities

July 28, 2011|Press Release |
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Other Operating Expenses





Operating Income






Net Income

$           47,951

$           2,879

$           1,707

$                     52,537

Earnings Per Weighted-Average Share, Basic and Diluted


Twelve Months Ended June 30, 2010






$         445,745

$           52,384

$           5,762

$                 503,299

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





Other Operating Expenses





Operating Income





Net Income

$           35,546

$             1,813

$           1,352

$                   38,711

Earnings Per Weighted-Average Share, Basic and Diluted





Twelve Months Ended Electric Results

Electric segment revenues for the twelve months ended June 30, 2011 increased $66.9 million over the same 2010 period. Rate increases added approximately $46.2 million to the 2011 period compared to the 2010 period, primarily from the Company’s Missouri jurisdiction. The estimated weather impact added approximately $13.1 million. While customer growth contributed an additional $1.9 million over the 2010 period, the destruction and corresponding loss of electric load caused by the May 22 tornado decreased revenues an estimated $2.2 million. Off-system revenues increased approximately $6.5 million over the 2010 period and other electric revenues increased $1.4 million on a comparative basis. Total fuel and purchased power expenses for the 2011 twelve month period increased by approximately $17.2 million over the 2010 period. Increased overall volumes, in large part due to warmer summer temperatures in the 2011 twelve month period, resulted in increased electric fuel and purchased power expense. In addition, fuel expense increased over last year due to the effect of recognizing expense as previously deferred costs are recovered from customers. Other operating expenses increased about $5.5 million, and maintenance expenses increased approximately $5.4 million. Depreciation increased $11.9 million, which was primarily driven by increased Missouri regulatory amortization and depreciation of plants put in service in 2010 not eligible for regulatory deferrals. Other taxes were higher by $3.4 million in the 2011 period compared to 2010. Overall, the electric segment 2011 twelve month period resulted in net income of $47.9 million compared to $35.5 million for the same 2010 period.

Twelve Months Ended Gas Results

Revenues from gas operations during the 2011 twelve month period decreased $4.3 million compared to the same 2010 period. The cost of natural gas sold and transported decreased $5.5 million during 2011, resulting in an overall increase in gas segment margin (defined as gas operating revenues less costs of gas in rates) of $1.2 million. The increased margin was primarily the result of the gas rate case which was effective April 1, 2010. Other operating expenses decreased by $1.2 million, while maintenance expenses were slightly lower by $0.1 million. Depreciation was higher by $1.1 million compared to the 2010 period, but other taxes were lower by approximately $0.2 million. The gas segment net income for the twelve month 2011 period was $2.9 million compared to $1.8 million for 2010.

Twelve Months Ended Consolidated Results

Total interest charges increased approximately $1.1 million in the 2011 twelve month period compared to 2010. Interest expense related to long term debt decreased $3.7 million, and short term debt interest was lower by $0.6 million. Other interest costs were lower by $2.2 million which was largely due to carrying charge deferrals. Lower debt related costs were offset by a decrease in income related to debt AFUDC of $7.6 million. The other income and expense category decreased earnings by $6.0 million when comparing the twelve month periods and was primarily driven by a decrease in equity AFUDC as the Iatan 2 and Plum Point Generating Stations were in service during the 2011 period.

Reconciliation of Earnings Per Share

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