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Buyout expenses affect Empire District’s bottom line

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Empire District Electric Co.’s (NYSE: EDE) impending $2.4 billion buyout by Canadian firm Algonquin Power & Utilities Corp. (TSX: AQN) reduced the Joplin-based utility provider’s first-quarter results.

Net income decreased 4.1 percent to $14 million, or 32 cents per share, from $14.6 million, or 34 cents per share, a year earlier, according to a news release.

On Feb. 9, Empire District agreed to the move expected to close in first-quarter 2017 that includes nearly $1 billion in debt. The deal would make Empire District a subsidiary of Liberty Utilities Co., the utility operation of Oakville, Ontario-based Algonquin.

The first quarter included acquisition-related costs of $4.2 million.

“All of us at Empire recognize the need to continue running the business as if nothing has changed,” Empire District President and CEO Brad Beecher said in the release. “To that end, I am pleased with our earnings performance for the first quarter 2016, during which we continued to experience milder weather than normal.

“Overall, costs were well controlled and our results, adjusted for weather and the merger-related costs incurred during the period, met our expectations.”

Empire District’s gross margin increased by 1.7 percent to $105.9 million from $104.1 million a year earlier. The company serves 218,000 customers in Missouri, Kansas, Oklahoma and Arkansas. Its Show-Me State service area includes Greene County, according to the release.

EDE shares were trading at $33.60 as of 11:30 a.m., compared to a 52-week range of $20.69 to $33.75.

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