Empire District Electric declares dividends, increased earnings

The board of directors of Joplin-based Empire District Electric Company declared a quarterly dividend of 32 cents per share on its common stock.

According to an Empire news release, the dividend was payable March 15 to holders of record as of March 1.

2003 earnings

The company also reported 2003 earnings of $29.4 million, or $1.29 per share, compared to earnings of $25.5 million, or $1.19 per share, for 2002.

Earnings for the fourth quarter of 2003 were $4.8 million, or 21 cents per share, compared to fourth quarter 2002 earnings of $3.6 million, or 16 cents per share.

Revenues and earnings for 2003 compared to 2002 were positively impacted by Missouri, Oklahoma and Federal Energy Regulatory Commission rate increases and continued customer growth.

Also increasing earnings for 2003 over 2002 were lower maintenance and repairs expense and the absence of merger expenses.

Increases in depreciation, amortization, pension and health care expenses negatively affected the company's earnings, as did interest expenses, increased insurance premiums and a decrease in off-system sales.

Earnings increased in the fourth quarter of 2003 compared to the fourth quarter of 2002 due in part to the increase in rates discussed above, a decrease in total fuel and purchased power costs and decreased maintenance and repairs expense.

A slight profit attributable to the company's nonregulated activities in the fourth quarter, as compared to a loss in the same quarter of 2002, also contributed to increased earnings. Increases in depreciation and amortization expense and pension and health care expenses partially offset the earnings growth for the quarter.

Adjustments

During the fourth quarter of 2003, Empire determined that an adjustment was necessary to the estimated pension cost that had been recorded throughout 2003 related to the defined benefit pension plan covering substantially all of Empire's employees.

The noncash adjustment in total increased the company's pension cost by $1.4 million, not of tax, or .06 cents per share.

The company has determined that prior 2003 quarters are affected by this adjustment and as a result, will restate earnings for each of the first three quarters of 2003.

The restatement will reduce previously reported earnings by 2 cents, 1 cent and 2 cents per share respectively for the quarters ended March 31, 2003, June 30, 2003, and Sept. 30, 2003.

Empire District Electric Company is an investor-owned utility traded on the New York Stock Exchange under the symbol "EDE."

With 792 employees, Empire District Electric Company ranks ninth on the "Springfield Area's Largest Publicly Held Companies" listing in SBJ's 2004 Book of Lists.