UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report: July 30, 2015
(Date
of earliest event reported)
THE
EMPIRE DISTRICT ELECTRIC COMPANY
(Exact
name of registrant as specified in charter)
KS
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1-3368
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44-0236370
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(IRS Employer
Identification Number)
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602 S. Joplin Avenue, Joplin, Missouri
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64801
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(Address of principal executive offices)
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(Zip Code)
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(417) 625-5100
(Registrant's telephone number, including area
code)
Not applicable
(Former name or former address, if
changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On July 30, 2015, The Empire District Electric Company (the “Company”)
issued a press release announcing the Company’s earnings for the second
quarter of 2015 and for the twelve month period ended June 30, 2015.
Furnished herewith as Exhibit 99.1 is a copy of the press release, which
is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1 hereto, shall
not be deemed “filed” for purposes of Section 18 of the Securities
Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the
liabilities of that section or Sections 11 and 12(a)(2) of the
Securities Act of 1933, nor shall it be deemed incorporated by reference
in any filing under the Securities Act of 1933 or the Exchange Act,
except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(a) Financial Statements of
businesses acquired:
None
(b) Pro forma financial information:
None
(c) Shell company transactions:
None
(d) Exhibits:
99.1 Press Release of THE EMPIRE DISTRICT ELECTRIC
COMPANY dated July 30, 2015
SIGNATURE
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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THE EMPIRE DISTRICT ELECTRIC COMPANY
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By
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/s/
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Laurie A. Delano
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Name:
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Laurie A. Delano
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Title:
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Vice President - Finance and Chief
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Financial Officer
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Dated:
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July 30, 2015
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Exhibit Index
Exhibit No.
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Description
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99.1
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Press Release of THE EMPIRE DISTRICT ELECTRIC COMPANY dated July
30, 2015
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4
Exhibit 99.1
The
Empire District Electric Company Reports Second Quarter 2015 Earnings;
Declares Quarterly Dividend
JOPLIN, Mo.--(BUSINESS WIRE)--July 30, 2015--(NYSE:EDE) At the
Board of Directors meeting of The Empire District Electric Company held
today, the Directors declared a quarterly dividend of $0.26 per share.
The dividend is payable September 15, 2015, to holders of record as
of September 1, 2015. The Company, an operator of regulated
electric, gas and water utilities, announced today the results for the
quarter and twelve months ended June 30, 2015.
The Company reported consolidated earnings for the second quarter of
2015 of $6.8 million, or $0.16 per share ($0.15 on a diluted basis),
compared to same quarter 2014 earnings of $11.2 million, or $0.26 per
share. Earnings for the twelve months ended June 30, 2015 were $56.4
million, or $1.30 per share ($1.29 on a diluted basis), compared to
earnings of $71.3 million, or $1.66 per share ($1.65 on a diluted
basis), for the twelve months ended June 30, 2014.
Earnings were lower this quarter over the same quarter last year,
primarily due to higher generation maintenance expense and higher
depreciation expense. At our SLCC generating facility, maintenance
expense increased approximately $3.1 million due to a planned major
maintenance outage the effect of which will be offset by lower planned
maintenance throughout our system the remainder of the year. The new
maintenance contract for the Riverton facility also increased
maintenance costs approximately $0.6 million over the same quarter last
year. Electric depreciation expense increased approximately $1.9 million
reflecting depreciation on the Asbury Air Quality Control System (AQCS)
environmental upgrade. Margin was relatively unchanged for the second
quarter of 2015 versus the same quarter in 2014.
The decrease in earnings for the twelve month period ended June 30,
2015, versus the comparable prior year period, was primarily driven by
lower gross margin resulting from milder weather for the comparable
periods, and increased operations, maintenance and depreciation expenses.
As announced, on June 24, 2015, the MPSC granted new rates for Missouri
customers (the Order). The rates are effective July 26, 2015. The Order
approved an annual increase in base revenues of about $17.1 million or
3.90%, consistent with the non-unanimous stipulation and agreement filed
April 8, 2015.
Regarding the Company’s second quarter 2015 results, Bradley P. Beecher,
President and CEO, stated the following: “Our second quarter results
were on target with our 2015 earnings guidance. The implementation of
our new Missouri rates on July 26 will enable us to begin recovering the
cost of our Asbury environmental upgrade. The Order is also reflective
of fuel cost savings achieved through the SPP integrated marketplace.
Given the expected earnings build as a result of these new customer
rates, our full-year weather normal earnings guidance range of $1.30 to
$1.45 per share we provided in February of this year remains unchanged.”
Second Quarter 2015 Results
Electric segment gross margin (electric revenue less cost of fuel and
purchased power) increased approximately $0.7 million or 0.8% during the
second quarter 2015 compared to the second quarter 2014. Electric
segment gross margin was positively impacted by increased customer
counts, which added an estimated $0.6 million to revenues. Negative
impacts to electric segment margin included milder weather and other
volumetric factors, which decreased revenues an estimated $0.5 million.
Lower wholesale customer rates drove a reduction in revenues of an
estimated $1.2 million, reflecting lower fuel costs.
Changes in net revenues related to the Southwest Power Pool (SPP)
Integrated Marketplace and fuel recovery revenues combined to reduce
revenues by $12.8 million during the second quarter 2015 compared to the
second quarter 2014, however this decrease is offset by a similar
decrease in fuel expense, resulting in a negligible impact on gross
margin.
Gas segment gross margin (gas revenues less cost of gas sold and
transported) declined $0.1 million or 1.7% to $4.2 million.
Consolidated quarterly earnings were also negatively impacted by:
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Maintenance and Repair expense increases of approximately $4.2
million, as previously mentioned,
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Depreciation and Amortization expense increases of approximately $2.0
million,
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Interest expense increases of approximately $0.7 million, and
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Changes in Allowance For Funds Used During Construction (AFUDC), which
decreased earnings by approximately $0.4 million.
Consolidated net income decreased approximately $4.4 million in the
second quarter of 2015 compared to the 2014 quarter.
Twelve Months Ended June 2015 Results
Electric segment gross margin decreased approximately $2.2 million
during the twelve month period ended June 30, 2015 versus the comparable
prior year period resulting from lower sales. Milder weather in the
twelve month period ended June 30, 2015 versus the comparable prior year
period resulted in a 1.4% decrease in on-system sales as a decline in
residential sales was not fully offset by increases in commercial and
industrial sales.
Electric segment gross margin was negatively impacted by:
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Weather and other volumetric factors, which decreased revenues an
estimated $8.7 million, and
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A previously disclosed $1.4 million refund to the Company’s FERC
wholesale customers in January 2015 reflecting lower fuel costs from
the SPP Integrated market.
Positive impacts to electric segment gross margin included:
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Increased customer counts, which added an estimated $2.0 million to
revenues, and
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Increased customer rates, which added an estimated $1.5 million to
revenues.
Gas segment gross margin decreased approximately $1.3 million or 5.3% on
decreased revenues of $7.0 million versus the comparable prior year
period. Gas segment results were unfavorably impacted by the milder
heating season during the twelve month period ended June 30, 2015 versus
the comparable prior year period.
Consolidated twelve month ended earnings were also negatively impacted
by:
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Operating expense increases of approximately $4.3 million, primarily
due to increased transmission expense,
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Maintenance expense increases of approximately $7.5 million driven by
the previously mentioned items,
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Depreciation and amortization expense increases of approximately $5.6
million,
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Property and other tax increases of approximately $1.2 million, and
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Interest expense increases of approximately $1.7 million.
Twelve month ended consolidated earnings were positively impacted by
$1.0 million from AFUDC changes.
Consolidated net income decreased approximately $14.8 million in the
2015 twelve month ended period compared to 2014.
Selected unaudited consolidated financial data for the quarters and
twelve months ended June 30, 2015 and June 30, 2014 is presented in the
table on the following page.
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(dollars in millions, except Per Share data)
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Three Months Ended
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Twelve Months Ended
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June 30,
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June 30,
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2015
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2014
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Change *
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2015
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2014
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Change *
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Electric Revenues
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$126.3
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$140.8
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($14.5
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)
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$567.6
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$574.5
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($6.9
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)
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Electric Fuel and Purchased Power
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39.2
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54.4
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(15.2
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193.3
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198.0
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(4.7
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Electric Margin
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87.1
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86.4
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0.7
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374.3
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376.5
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(2.2
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Gas Revenues
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6.2
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7.0
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(0.8
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46.4
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53.4
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(7.0
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Cost of Gas Sold and Transported
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2.0
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2.7
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(0.7
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22.8
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28.5
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(5.7
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Gas Margin
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4.2
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4.3
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(0.1
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23.6
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24.9
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(1.3
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Other Revenues
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2.0
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2.0
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0.0
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8.1
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8.1
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0.0
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Gross Margin
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93.3
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92.7
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0.6
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406.0
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409.5
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(3.5
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Less:
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Operating and Maintenance Expenses
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44.0
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39.8
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4.2
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165.5
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153.5
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12.0
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Depreciation and Amortization
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20.1
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18.2
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1.9
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77.2
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71.7
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5.5
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Taxes
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13.1
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15.3
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(2.2
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71.5
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78.6
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(7.1
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Operating Income
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16.1
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19.5
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(3.4
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91.8
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105.7
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(13.9
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Interest Expense and Other, net
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9.3
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8.3
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1.0
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35.4
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34.4
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1.0
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Net Income
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$6.8
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$11.2
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($4.4
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$56.4
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$71.3
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($14.9
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Earnings Per Share (Basic)
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$0.16
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$0.26
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($0.10
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$1.30
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$1.66
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($0.36
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Earnings Per Share (Diluted)
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$0.15
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$0.26
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($0.11
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$1.29
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$1.65
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($0.36
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Three Months Ended
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Twelve Months Ended
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June 30,
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June 30,
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%
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%
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2015
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2014
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Change *
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2015
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2014
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Change *
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Electric On-System kWh Sales (in millions):
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Residential
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347
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370
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-6.2
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%
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1,876
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1,990
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-5.7
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%
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Commercial
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394
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382
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3.2
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%
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1,585
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1,576
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0.6
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%
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Industrial
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272
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262
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3.8
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%
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1,050
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1,009
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4.1
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%
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Other
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110
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110
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0.1
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%
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461
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469
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-1.8
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%
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Total On-System Electric Sales
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1,123
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1,124
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-0.1
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%
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4,972
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5,044
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-1.4
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%
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Retail Gas Sales (billion cubic feet):
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Residential
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0.21
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0.26
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-19.5
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%
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2.44
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2.87
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-15.1
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%
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Commercial/Industrial
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0.12
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0.14
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-12.6
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%
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1.18
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1.43
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-17.9
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%
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Other
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0.00
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0.00
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-39.4
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%
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0.03
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0.04
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-16.4
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%
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Total Retail Gas Sales
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0.33
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0.40
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-17.2
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%
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3.65
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4.34
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-16.0
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%
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* Slight differences from actual results may occur due to rounding
to millions.
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Reconciliation of Earnings Per Share
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Quarter Ended
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Twelve Months Ended
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Basic Earnings Per Share – June 30, 2014
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$
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0.26
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$
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1.66
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Gross Margins
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Electric segment
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0.01
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(0.03
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Gas segment
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0.00
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(0.02
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Other segment
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0.00
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0.00
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Total Gross Margins
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0.01
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(0.05
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Expenses
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Operating
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0.00
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(0.06
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Maintenance and repairs
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(0.06
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(0.11
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Depreciation and amortization
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(0.03
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(0.08
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Property & Other taxes
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(0.01
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(0.02
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Other income and deductions
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0.00
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(0.01
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Interest charges
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(0.01
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(0.03
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AFUDC
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0.00
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0.01
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Dilutive effect of additional shares issued
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0.00
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(0.01
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Basic Earnings Per Share – June 30, 2015
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$
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0.16
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$
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1.30
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Diluted Earnings Per Share – June 30, 2015
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$
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0.15
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$
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1.29
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The reconciliation of basic earnings per share (EPS) presented above
compares the quarter and year ended June 30, 2015 versus June 30, 2014
and is a non-GAAP presentation. The economic substance behind this
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. The Company believes
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 the Company
believes 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, the Company believes
the presentation of gross margin (reflected in the table above and
elsewhere in this press release) is useful to investors and others in
understanding and analyzing changes in operating performance from one
period to the next, and have included the analysis as a complement to
the financial information provided in accordance with GAAP. This
reconciliation and margin information may not be comparable to other
companies or more useful than the GAAP presentation included in the
statements of income. The presentation does not purport to be an
alternative to EPS determined in accordance with GAAP as a measure of
operating performance or any other measure of financial performance
presented in accordance with GAAP. Management compensates for the
limitations of using non-GAAP financial measures by using them to
supplement GAAP results to provide a more complete understanding of the
factors and trends affecting the business than GAAP results alone. The
dilutive effect of additional shares issued in this table reflects the
impact of all shares issued in the respective periods presented.
****
Earnings Guidance
The guidance range of $1.30 to $1.45 per share communicated in February
2015 remains unchanged. This range assumed 30-year average weather,
overall system energy growth of less than 1%, and increased operating
costs, driven by a full year of service from our Asbury AQCS upgrade.
Given the Missouri rate case order is reflective of lower fuel costs
with little impact on margin, our guidance range remains unchanged.
Other factors that may impact earnings include variations in customer
growth and usage projections and unanticipated or unplanned events that
may impact operating and maintenance costs. The effects of assumptions
and other factors evaluated for the purpose of providing guidance are
not necessarily independent of one another, and the combination of
effects can cause individual impacts smaller or larger than the
indicated guidance range.
Earnings Conference Call
Brad Beecher, President and CEO, will host a conference call Friday,
July 31, 2015, at 1:00 p.m. Eastern Time to discuss earnings for the
second quarter and twelve months ended June 30, 2015. To phone in to the
conference call, parties in the United States should dial
1-888-243-4451, any time after 12:45 p.m. Eastern Time. The webcast
presentation and accompanying presentation slides can also be accessed
from Empire’s website at www.empiredistrict.com. The
webcast presentation will be available for replay for one year from
today’s date. Forward-looking and other material information may be
discussed during the conference call.
Based in Joplin, Missouri, The Empire District Electric Company
(NYSE:EDE) is an investor-owned, regulated utility providing electric,
natural gas (through its wholly owned subsidiary, The Empire District
Gas Company) and water service, with approximately 218,000 customers in
Missouri, Kansas, Oklahoma, and Arkansas. A subsidiary of the Company
also provides fiber optic services.
Certain matters discussed in this press release are “forward-looking
statements” intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of 1995. Such
statements address future plans, objectives, expectations, earnings, and
events or conditions concerning various matters. Actual results
in each case could differ materially from those currently anticipated in
such statements, by reason of the factors noted in the Company’s filings
with the SEC, including the most recent Form 10-K and Form 10-Q.
CONTACT:
The Empire District Electric Company
Investor
Relations:
Dale Harrington, 417-625-4222
Director of Investor
Relations
dharrington@empiredistrict.com
or
Media
Communications:
Julie Maus, 417-625-5101
Director of Corporate
Communications
jmaus@empiredistrict.com
Empire Electric (NYSE:EDE)
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Empire Electric (NYSE:EDE)
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From May 2023 to May 2024