Ahead of buyout, Empire District improves bottom line

Amid buyout proceedings by Ontario-based Algonquin Power & Utilities Corp. (TSX: AQN), Joplin-based Empire District Electric Co. (NYSE: EDE) boosted its third-quarter net income.

The utility provider reported earnings of $27.5 million, or 62 cents per diluted share, an 8.7 percent increase compared with $25.3 million, or 58 cents per share, a year earlier, according to a news release.

“Our third-quarter results, adjusted for weather and the merger-related costs incurred during the period, continue to meet our expectations,” Empire District President and CEO Brad Beecher said in the release.

Third-quarter financial notes:
    •    Gross margin came to $128.7 million, a 5 percent boost from a year earlier.
    •    Merger related costs were $300,000, compared with no costs in third-quarter 2015.
    •    Weather and other volumetric factors improved revenue by $3 million.

Empire District expects the Algonquin purchase to close in first-quarter 2017, according to the release.

The deal that would make Empire District a subsidiary of Liberty Utilities Co., Algonquin’s U.S. utility operation, received approval Sept. 7 by the Missouri Public Service Commission, followed Sept. 29 with approval by the Arkansas Public Service Commission. On Oct. 6, the company announced the filing of a joint motion with the Kansas Corp. Commission for approval of a unanimous settlement agreement to pave the way for the deal. The approval fo the settlement agreement is pending before the KCC, and an order is due no later than Jan. 10.

Empire District has 218,000 customers in Missouri, Kansas, Oklahoma and Arkansas, according to the release.

EDE shares were trading at $34.26 as of 10:07 a.m., near a 52-week high of $34.40. It’s 52-week low is $21.43.