-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, lzsSe4v18+R21f+CV5CBfQTsf4lBWsyoEaIhVAXTM5lweDV1hOO294hLnMz7YPps 3iBai4S/mm+7EuT5DBnC8w== 0000899243-94-000028.txt : 19940228 0000899243-94-000028.hdr.sgml : 19940228 ACCESSION NUMBER: 0000899243-94-000028 CONFORMED SUBMISSION TYPE: U-3A-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940225 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HOUSTON INDUSTRIES INC CENTRAL INDEX KEY: 0000202131 STANDARD INDUSTRIAL CLASSIFICATION: 4911 IRS NUMBER: 741885573 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-3A-2 SEC ACT: 35 SEC FILE NUMBER: 069-00231 FILM NUMBER: 94512980 BUSINESS ADDRESS: STREET 1: 4400 POST OAK PKWY STREET 2: 5 POST OAK PK CITY: HOUSTON STATE: TX ZIP: 77027 BUSINESS PHONE: 7136293000 MAIL ADDRESS: STREET 1: P O BOX 4567 CITY: HOUSTON STATE: TX ZIP: 77210 U-3A-2 1 U-3A-2 DOCUMENT HOUSTON INDUSTRIES INCORPORATED FORM U-3A-2 FOR CALENDAR YEAR 1993 This report consists of 30 consecutively numbered pages. 1 of 30 File No. 1-7629 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. FORM U-3A-2 Statement by Holding Company Claiming Exemption Under Rule 2 from the Provisions of the Public Utility Holding Company Act of 1935 To be Filed Annually Prior to March 1 Houston Industries Incorporated (Name of Company) hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information: 1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF CLAIMANT AND EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR FOREIGN UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY HOLDS AN INTEREST. Claimant is Houston Industries Incorporated, a Texas corporation having its principal place of business at 5 Post Oak Park, 4400 Post Oak Parkway, Houston, Texas 77027. Claimant's business is the holding of the stocks of its subsidiaries and performance of financial, administrative and other support services in connection with the operations of such subsidiaries. Claimant has one subsidiary which is a "public utility company" as defined in Section 2(a)(5) of the Public Utility Holding Company Act of 1935, namely Houston Lighting & Power Company (HL&P), a Texas corporation with executive offices located at 611 Walker Avenue, Houston, Texas 77002. HL&P, which is Claimant's principal operating subsidiary, is engaged in the generation, transmission, distribution and sale of electric energy and serves customers in an approximately 5,000 square mile area of the Texas Gulf Coast, including Houston. The only other subsidiaries of Claimant that have significant assets or made a material contribution to Claimant's 1993 consolidated revenues or income are 2 of 30 Utility Fuels, Inc. (Utility Fuels), a Texas corporation, and KBLCOM Incorporated (KBLCOM), a Delaware corporation. Prior to October 1993, Utility Fuels provided coal and lignite purchasing, transportation and handling services, primarily to HL&P. Utility Fuels was merged with and into HL&P in October 1993. KBLCOM operates cable television systems through the following subsidiaries. Indirect subsidiaries of KBLCOM are indented under the listing of their respective parent corporations. The principal business address of KBLCOM and each subsidiary is 2 Allen Center, 1200 Smith, Suite 1800, Houston, Texas 77002. Company (State of Organization) ------------------------------- KBL Cable, Inc. (Delaware) KBL-TV Incorporated (Delaware) KBL-TV Incorporated sells advertising time on behalf of cable systems owned by subsidiaries of KBL Cable, Inc. and other unrelated parties. KBL-TV Incorporated owns a 60% interest in the Greater Portland Cable Advertising Interconnect, an Oregon Partnership that provides advertising services to a group of Portland area cablesystems. That portion of the ownership interest in such partnership that is not owned by KBL-TV Incorporated is owned by unaffiliated partners. KBL Cablesystems of the Southwest, Inc. (Minnesota) KBL Cablesystems of the Southwest, Inc. owns (1) cable television systems in the areas of greater San Antonio, Minneapolis and Laredo and (2) a 99% interest in (a) Dickinson Pacific Cablesystems, a California general partnership that owns cable television systems in Orange County, California, and (b) KBL-Portland Cablesystems Limited Partnership, an Oregon limited partnership that owns cable television systems in Portland, Oregon. KBL Cable TV, Inc. (Delaware) KBL Cable TV, Inc. owns (1) a 1% interest in Dickinson Pacific Cablesystems, (2) a 1% interest in KBL-Multnomah Cablesystems Limited Partnership, an Oregon limited partnership that owns cable television systems in Multnomah County, Oregon and (3) a 1.2536% 3 of 30 interest in KBL Cablesystems of Minneapolis Limited Partnership, a Minnesota limited partnership that owns cable television systems in Minneapolis. TVE Transmission, Inc. (Texas) TVE Transmission, Inc. provides microwave services to a division of KBL Cablesystems of the Southwest, Inc. and other unrelated parties. KBL Cablesystems of Multnomah, Inc. (Oregon) KBL Cablesystems of Multnomah, Inc. owns (1) a 99% interest in KBL- Multnomah Cablesystems Limited Partnership and (2) a 1% interest in KBL- Portland Cablesystems Limited Partnership. KBL Cablesystems of Minneapolis, Inc. (Minnesota) KBL Cablesystems of Minneapolis, Inc. owns a 96.11405% interest in KBL Cablesystems of Minneapolis Limited Partnership. That portion of the partnership interest in such partnership that is not owned by KBL Cablesystems of Minneapolis, Inc. or by KBL Cable TV, Inc. is owned by unaffiliated limited partners. KBL Properties, Inc. (Delaware) KBL Properties, Inc. owns certain real estate properties and leases the properties to subsidiaries of KBL Cable, Inc. KBL Ventures Incorporated (Delaware) KBL Ventures Incorporated owns (1) a 10% interest in Cable Advertising Partners, a California partnership that provides advertising services to a group of Los Angeles area cable systems, (2) a 34.3% interest in Upper Midwest Cable Partners, a Minnesota partnership that provides advertising services to a group of Minneapolis area cable systems, (3) a 25% interest in Interconnect of the Twin Cities, a Minnesota partnership that provides advertising services to a group of Minneapolis area cable systems and (4) a 25% interest in Broadband Development Partners, General Partnership, a California general partnership that was formed to develop an alternate access business in the Los Angeles area. That portion of the ownership 4 of 30 interests in such partnerships that is not owned by KBL Ventures Incorporated is owned by unaffiliated partners. KBL Communications, Inc. (Texas) KBL Communications, Inc. owns (1) a 50% interest in Paragon Communications, a Colorado partnership that owns cable television systems, (2) a 16.67% interest in CAT Partnership, a California partnership that owns certain cable television assets or systems (or proceeds from the disposition thereof) and (3) a 14.6175% interest in ARP Partnership, a Delaware partnership that owns certain cable television assets. FIBRCOM Incorporated (Delaware) FIBRCOM Incorporated owns a 33.3% interest in Linkatel Pacific, Limited Partnership, a California limited partnership that was formed to develop an alternate access business in the Los Angeles area. That portion of the ownership interest in such partnership not owned by FIBRCOM Incorporated is owned by unaffiliated partners. KBL Integrated Services, Inc. (Delaware) KBL Integrated Services, Inc. will operate private telephone systems in the San Antonio area. _________________________________ Claimant has nine additional subsidiaries, none of which is material and all of which (except as otherwise noted) are located at 5 Post Oak Park, 4400 Post Oak Parkway, Houston, Texas 77027, as follows: Development Ventures, Inc., a Delaware corporation that has principally provided financing to small, emerging businesses located in or near HL&P's service area. Primary Fuels, Inc., a Texas corporation that engaged in oil and gas exploration, development and production activities until 1989 when all of its oil and gas assets were sold. Houston Industries Products, Inc., a Delaware corporation organized to develop and market inventions, technology and other intellectual property owned by Claimant and Claimant's other subsidiaries. Houston Industries (Delaware) Incorporated, a Delaware corporation located at 200 West Ninth Street, Wilmington, Delaware 19801, the only assets of which are 5 of 30 shares of non-voting class B common stock of HL&P. Houston Argentina S.A., an Argentine corporation located in Buenos Aires, Argentina, the principal asset of which is a 32.5% interest in Compania de Inversiones en Electricidad S.A., an Argentine holding company which owns 51% of the capital stock of each of (a) Empresa Distribuidora La Plata S.A. (EDELAP), an Argentine electric utility serving the City of La Plata and its environs and (b) Central Dique S.A., an Argentine corporation (Central Dique) formed to own and operate the electrical generating assets of EDELAP. For additional information regarding the assets of EDELAP and Central Dique, reference is made to Section 4(A)(2) of this Statement. Subject to the approval of the Argentine government, the Claimant intends to transfer its ownership in the capital stock of Houston Argentina to Houston Industries Energy, Inc. (HI Energy) during the calendar year ended December 31, 1994. Houston Argentina provides management and technical services to EDELAP. Pursuant to Section 33(a) of the Public Utility Holding Company Act of 1935, neither EDELAP nor Houston Argentina is a "public utility company" under Section 2(a)(5) of such Act. Industrias Electricas de Houston S.A., an Argentine corporation located in Buenos Aires, Argentina, owns as of the date of this Statement, no assets. Houston Industries Building, Inc., a Delaware corporation organized in 1993, owns real property in Houston, Texas. HI Energy, a Delaware corporation located at 611 Walker Avenue, Houston, Texas 77002, organized in 1993 to participate in domestic and foreign power generation projects and to invest in the privatization of foreign electric utility systems. On February 7, 1994, HI Energy incorporated HIE Ford Heights, Inc., a wholly-owned subsidiary of HI Energy, which as of the date of this Statement owned no assets. Utility Rail Services, Inc., a Delaware corporation that owns 100% of UFI Services, Inc., a Delaware subsidiary which owns a 50% interest in a Nebraska- based joint venture that constructs, repairs, stores and maintains rail cars. 2. A BRIEF DESCRIPTION OF THE PROPERTIES OF CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES USED FOR THE GENERATION, TRANSMISSION, AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE, OR FOR THE 6 of 30 PRODUCTION, TRANSMISSION, AND DISTRIBUTION OF NATURAL OR MANUFACTURED GAS, INDICATING THE LOCATION OF PRINCIPAL GENERATING PLANTS, TRANSMISSION LINES, PRODUCING FIELDS, GAS MANUFACTURING PLANTS, AND ELECTRIC AND GAS DISTRIBUTION FACILITIES, INCLUDING ALL SUCH PROPERTIES WHICH ARE OUTSIDE THE STATE IN WHICH CLAIMANT AND ITS SUBSIDIARIES ARE ORGANIZED AND ALL TRANSMISSION OR PIPELINES WHICH DELIVER OR RECEIVE ELECTRIC ENERGY OR GAS AT THE BORDERS OF SUCH STATE. The only properties to which this item is applicable are the electric utility properties of HL&P. Such properties are located in the Counties of Anderson, Austin, Brazoria, Chambers, Colorado, Fort Bend, Freestone, Galveston, Grimes, Harris, Henderson, Leon, Liberty, Limestone, Madison, Matagorda, Montgomery, Robertson, Waller and Wharton in the State of Texas. As of December 31, 1993, HL&P owned and operated 61 generating units located at 11 generating stations in the Counties of Chambers, Fort Bend, Galveston, Harris, Limestone and Matagorda having an aggregate turbine nameplate rating of 13,425,868 kilowatts. Approximately 42% of HL&P's energy requirements during 1993 was met with natural gas, 40% with coal and lignite, and 1% with nuclear. The remaining 17% was met principally with purchased power. HL&P operates 24,065 pole miles of overhead distribution lines and 3,556 circuit miles of overhead transmission lines including 529 circuit miles operated at 69,000 volts, 1,997 circuit miles operated at 138,000 volts and 1,030 circuit miles operated at 345,000 volts. HL&P operates 8,074 circuit miles of underground distribution lines and 12.6 circuit miles of underground transmission lines, including 8.1 circuit miles operated at 138,000 volts and 4.5 circuit miles operated at 69,000 volts. These lines have been constructed in, or adjoin, the communities and municipalities served by HL&P. In addition, HL&P owns and operates switching and transformer stations at its generating plants and at various points on its system. All such facilities are located within the State of Texas. HL&P has no properties and furnishes no service outside of, or at the state line of, the State of Texas. 3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES: (A) NUMBER OF KWH. OF ELECTRIC ENERGY SOLD (AT 7 of 30 RETAIL OR WHOLESALE), AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL. During calendar year 1993, HL&P sold 61,149,460,291 kwh. of electric energy as follows:
Energy Sales kwh. -------------- Residential 16,953,667,431 Commercial 13,083,391,427 Industrial 30,434,868,343 Other Utilities 564,619,636 Public Authorities 112,913,454
HL&P distributed no natural or manufactured gas during 1993. (B) NUMBER OF KWH. OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED. None (C) NUMBER OF KWH. OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS SOLD AT WHOLESALE OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED OR AT THE STATE LINE. None (D) NUMBER OF KWH. OF ELECTRIC ENERGY AND MCF. OF NATURAL OR MANUFACTURED GAS PURCHASED OUTSIDE THE STATE IN WHICH EACH SUCH COMPANY IS ORGANIZED OR AT THE STATE LINE. None 4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR A FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES DOLLARS: (A) NAME, LOCATION, BUSINESS ADDRESS AND DESCRIPTION OF THE FACILITIES USED BY THE EWG OR FOREIGN UTILITY COMPANY FOR THE GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRIC ENERGY FOR SALE OR FOR THE DISTRIBUTION AT RETAIL OF NATURAL OR MANUFACTURED GAS. 1. The Claimant does not directly or indirectly own any interest in an EWG. 8 of 30 2. The Claimant has an indirect interest in two Argentine corporations: EDELAP and Central Dique. The principal location of EDELAP and Central Dique is in the city of La Plata, the province of Buenos Aires, Argentina. The business address of such entities is Calle 50, No. 543, (1900), La Plata, Argentina. EDELAP distributes electricity to approximately 250,000 customers in La Plata, Argentina and its environs. Maximum demand on its system is approximately 230 megawatts. EDELAP has one substation and 32 kilometers of transmission lines operated at 220,000 volts, and eight substations and 246 kilometers of transmission lines operated at 132,000 volts. Substantially all of the power sold by EDELAP is provided through the Argentine national grid. Central Dique owns the Dique Power Plant which has seven gas turbines with a combined capacity of 120 megawatts. Electric power generated by Central Dique is sold through the Argentine national grid. (B) NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST IN SUCH EWG OR FOREIGN UTILITY COMPANY; AND DESCRIPTION OF THE INTEREST HELD. 1. No system company (as defined to refer to each subsidiary of the Claimant, a "System Company") holds an interest in any EWG. 2. Houston Argentina S.A., an Argentine corporation and a direct wholly owned subsidiary of the Claimant ("Houston Argentina"), owns 32.5% of the voting stock of Compania de Inversiones en Electricidad S.A., a special purpose Argentine holding company (COINELEC). COINELEC owns all the issued and outstanding shares of Class A stock of each of EDELAP and Central Dique. The Class A shares held by COINELEC represent 51% of the capital stock of each of EDELAP and Central Dique. Subject to the approval of the Argentine government, the Claimant intends to transfer its ownership in the capital stock of Houston Argentina to HI Energy during 1994. (C) TYPE AND AMOUNT OF CAPITAL INVESTED, DIRECTLY OR INDIRECTLY, BY THE HOLDING COMPANY CLAIMING EXEMPTION; ANY DIRECT OR INDIRECT GUARANTEE OF THE SECURITY OF THE EWG OR FOREIGN UTILITY COMPANY BY THE HOLDING COMPANY CLAIMING EXEMPTION; AND ANY DEBT OR OTHER FINANCIAL OBLIGATION FOR WHICH THERE IS RECOURSE, DIRECTLY OR INDIRECTLY, TO THE HOLDING COMPANY CLAIMING EXEMPTION OR ANOTHER SYSTEM COMPANY, OTHER THAN THE EWG OR THE FOREIGN UTILITY COMPANY. 9 of 30 1. The Claimant invested $37.4 million (U.S. dollars) in the acquisition by COINELEC of the Class A shares of ELEDAP and Central Dique. Such investment was in the form of (a) a direct cash contribution of $1.6 million to COINELEC, (b) the contribution of $26.0 million aggregate principal amount of foreign debt securities issued by the Argentine government and (c) a loan to COINELEC in the aggregate principal amount of $9.8 million. 2. There are no direct or indirect guarantees by the Claimant of any security of COINELEC, EDELAP or Central Dique. 3. There are no financial obligations of COINELEC, EDELAP or Central Dique for which there is recourse, directly or indirectly, to the Claimant or any other subsidiary of the Claimant. (D) CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN UTILITY COMPANY DURING THE REPORTING PERIOD. 1. At December 31, 1993, the combined capitalization of EDELAP and Central Dique was approximately $46 million (calculated on the basis of an exchange ratio of one Argentine peso to one U.S. dollar) based on the combined book value of their assets at the time of purchase of control by COINELEC. A proposal to step up such book value is pending before the Argentine government. 2. During the twelve-month period ended December 31, 1993, EDELAP and Central Dique had combined earnings of approximately $350,000 (calculated on the basis of an exchange ratio of one Argentine peso to one U.S. dollar). Such results were materially impacted by the unexpected availability of substantial amounts of hydroelectric generation, which reduced the marginal cost of electric energy in Argentina and limited the dispatch of Central Dique's gas-fired generation to meet peaking requirements. (E) IDENTIFY ANY SERVICE, SALES OR CONSTRUCTION CONTRACTS(S) BETWEEN THE EWG OR FOREIGN UTILITY COMPANY AND A SYSTEM COMPANY, AND DESCRIBE THE SERVICES TO BE RENDERED OR GOODS SOLD AND FEES OR REVENUES UNDER SUCH AGREEMENT(S). 1. There are no "sales contracts" or "construction contract(s)" (as such terms are defined in Section 2(a) of the Public Utility Holding Company Act), between any EWG or Foreign Utility Company and the Claimant or any System Company. 2. Houston Argentina is a party to a management assistance agreement (the "Management Services Agreement") with EDELAP and Central Dique. Under the Management Assistance Agreement, Houston Argentina provides certain technical and managerial assistance services to EDELAP and Central Dique, including advising and assisting in the management of the facilities and the training of technicians and operating and managing 10 of 30 personnel. The Management Assistance Agreement expires in December 2002. The fee under the Management Services Agreement, which is shared by Houston Argentina with other shareholders of COINELEC, is 2.7% of the gross receipts of EDELAP and Central Dique (net of taxes) plus (a) an additional $1 million during 1993 and 1994 and (b) an additional $500,000 for each year thereafter until the termination of the agreement. The management fee is payable quarterly in U.S. dollars. The Management Assistance Agreement also provides that EDELAP and Central Dique will reimburse Houston Argentina for certain costs associated with the temporary assignment of persons employed by the Claimant or by subsidiaries of the Claimant to perform services on behalf of EDELAP and Central Dique. 11 of 30 EXHIBIT A --------- A CONSOLIDATING STATEMENT OF INCOME AND SURPLUS OF THE CLAIMANT AND ITS SUBSIDIARY COMPANIES FOR THE LAST CALENDAR YEAR, TOGETHER WITH A CONSOLIDATING BALANCE SHEET OF CLAIMANT AND ITS SUBSIDIARY COMPANIES AS OF THE CLOSE OF SUCH CALENDAR YEAR. See Exhibits A-1 and A-2, respectively. EXHIBIT B --------- AN ORGANIZATIONAL CHART SHOWING THE RELATIONSHIP OF EACH EWG OR FOREIGN UTILITY COMPANY TO ASSOCIATE COMPANIES IN THE HOLDING-COMPANY SYSTEM. EXHIBIT C --------- FINANCIAL DATA SCHEDULE OF CLAIMANT. The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 25th day of February, 1993. HOUSTON INDUSTRIES INCORPORATED By: /s/ Mary P. Ricciardello ------------------------- Mary P. Ricciardello Comptroller ATTEST: /s/ R. E. Smith - ----------------------------- Assistant Corporate Secretary (Seal) NAME, TITLE AND ADDRESS OF OFFICER TO WHOM NOTICES AND CORRESPONDENCE CONCERNING THIS STATEMENT SHOULD BE ADDRESSED: William A. Cropper Vice President and Treasurer Houston Industries Incorporated 5 Post Oak Park, 28th Floor 4400 Post Oak Parkway Houston, Texas 77027 12 of 30 EXHIBIT A-1 HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
HII HL&P KBLCOM DVI HASA HIEI HIBI ---------- ---------- --------- ------- -------- ------- ------- OPERATING REVENUES $4,079,863 $ 244,067 ---------- ---------- --------- -------- -------- ------- ------- OPERATING EXPENSES: ELECTRIC: FUEL 1,063,050 PURCHASED POWER 515,502 OPERATION AND MAINTENANCE 898,535 TAXES OTHER THAN INCOME TAXES 211,295 CABLE TELEVISION OPERATING EXPENSES 148,325 DEPRECIATION & AMORTIZATION $ 729 385,731 77,912 $ 22 $ 8 ---------- ---------- ---------- -------- -------- ------- ------- TOTAL 729 3,074,113 226,237 0 22 8 0 ---------- ---------- ---------- -------- -------- ------- ------- OPERATING INCOME (LOSS) (729) 1,005,750 17,830 0 (22) (8) 0 ---------- ---------- ---------- -------- -------- ------- ------- OTHER INCOME (EXPENSE): ALLOWANCE FOR OTHER FUNDS USED DURING CONSTRUCTION 3,512 DIVIDEND INCOME INTEREST INCOME 32,744 3,296 396 EQUITY IN INCOME OF CABLE TELEVISION PARTNERSHIPS 31,979 OTHER-NET (14,421) (7,279) (3,607) ($280) 560 (2,824) ($2) INTEREST INCOME FROM SUBSIDIARIES 26,525 ---------- ---------- ---------- -------- -------- ------- ------- TOTAL OTHER INCOME (EXPENSE) 44,848 (471) 28,768 (280) 560 (2,824) (2) ---------- ---------- ---------- -------- -------- ------- ------- FIXED CHARGES: INTEREST ON LONG-TERM DEBT 49,328 276,049 47,477 OTHER INTEREST 25,418 12,317 3,697 392 1 10 ALLOWANCE FOR BORROWED FUNDS USED DURING CONSTRUCTION (CREDIT) (3,781) PREFERRED DIVIDENDS OF SUBSIDIARY ---------- ---------- ---------- -------- -------- ------- ------- TOTAL FIXED CHARGES 74,746 284,585 51,174 392 1 10 0 ---------- ---------- ---------- -------- -------- ------- ------- INCOME (LOSS) BEFORE INCOME TAXES (30,627) 720,694 (4,576) (672) 537 (2,842) (2) INCOME TAXES (12,726) 236,471 8,436 (260) 286 (1,001) (1) ---------- ---------- ---------- -------- -------- ------- ------- NET INCOME (LOSS) (17,901) 484,223 (13,012) (412) 251 (1,841) (1) DIVIDENDS ON PREFERRED STOCK 34,473 ---------- ---------- ---------- -------- -------- ------- ------- NET INCOME (LOSS) FOR COMMON STOCK (17,901) 449,750 (13,012) (412) 251 (1,841) (1) EQUITY IN EARNINGS OF SUBSIDIARIES 405,156 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 19,097 (19,097) INTEREST ON NOTE HELD BY PARENT (NET OF TAX BENEFIT OF $5,211) 9,679 (9,679) CASH DIVIDENDS ON COMMON STOCK 487,927 342,982 350,000 ---------- ---------- ---------- -------- -------- ------- ------- NET INCREASE (DECREASE) IN RETAINED EARNINGS (71,896) 106,768 (391,788) (412) 251 (1,841) (1) RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 1,254,686 1,922,558 (552,842) (10,226) (70) 0 0 TAX BENEFIT ON DIVIDENDS PAID TO ESOP 8,939 REACQUISITION OF PREFERRED STOCK (402) (402) ADJUSTMENT TO ADDITIONAL PAID-IN CAPITAL TERMINATION OF OPERATIONS ---------- ---------- ---------- -------- -------- ------- ------- RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $1,191,327 $2,028,924 ($944,630) ($10,638) $181 ($1,841) ($1) ========== ========== ========== ======== ======== ======= ======= EARNINGS (LOSS) PER COMMON SHARE (1) ($0.14) $3.46 ($0.10) $0.00 $0.00 ($0.01) $0.00 ========== ========== ========== ======== ======== ======= ======= (1) BASED ON WEIGHTED AVERAGE COMMON LEGEND OF SUBSIDIARY NAMES: SHARES OUTSTANDING OF HOUSTON --------------------------- INDUSTRIES INCORPORATED (000) - 130,004 HII - HOUSTON INDUSTRIES INCORPORATED HL&P - HOUSTON LIGHTING & POWER COMPANY NOTE: KBLCOM - KBLCOM INCORPORATED AND SUBSIDIARIES - ----- DVI - DEVELOPMENT VENTURES, INC. UTILITY RELATED BUSINESS OF UTILITY FUELS, INC. WAS MERGED HASA - HOUSTON ARGENTINA S.A. WITH HL&P ON OCTOBER 8, 1993. NON-UTILITY BUSINESS WAS HIEI - HOUSTON INDUSTRIES ENERGY, INC. TRANSFERRED TO URS, A NEWLY FORMED SUBSIDIARY. HIBI - HOUSTON INDUSTRIES BUILDING, INC.
13 of 30 EXHIBIT A-1 HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
ELIMINATIONS/ HIDI HIPI URS PFI HIFI RECLASSIFICATION CONSOLIDATED -------- ---------- -------- -------- -------- ----------------- ------------ OPERATING REVENUES $ 1,688 $ 1,259 ($2,947) $4,323,930 -------- ---------- -------- -------- -------- ----------- ---------- OPERATING EXPENSES: ELECTRIC: FUEL 1,063,050 PURCHASED POWER 515,502 OPERATION AND MAINTENANCE 898,535 TAXES OTHER THAN INCOME TAXES 211,295 CABLE TELEVISION OPERATING EXPENSES 148,325 DEPRECIATION & AMORTIZATION $ 9 395 464,806 -------- ---------- -------- -------- -------- ---------- ---------- TOTAL 0 9 395 0 0 0 3,301,513 -------- ---------- -------- -------- -------- ---------- ---------- OPERATING INCOME (LOSS) 0 (9) 1,293 0 1,259 (2,947) 1,022,417 -------- ---------- -------- -------- -------- ---------- ---------- OTHER INCOME (EXPENSE): ALLOWANCE FOR OTHER FUNDS USED DURING CONSTRUCTION 3,512 DIVIDEND INCOME $342,982 (342,982) 0 INTEREST INCOME (3,079) 33,357 EQUITY IN INCOME OF CABLE TELEVISION PARTNERSHIPS 31,979 OTHER-NET (30) (259) (2,543) ($131) (332) 10,182 (20,966) INTEREST INCOME FROM SUBSIDIARIES (26,525) 0 -------- ---------- -------- -------- -------- ---------- ---------- TOTAL OTHER INCOME (EXPENSE) 342,952 (259) (2,543) (131) (332) (362,404) 47,882 -------- ---------- -------- -------- -------- ---------- ---------- FIXED CHARGES: INTEREST ON LONG-TERM DEBT 7,235 380,089 OTHER INTEREST 139 (29,610) 12,364 ALLOWANCE FOR BORROWED FUNDS USED DURING CONSTRUCTION (CREDIT) (3,781) PREFERRED DIVIDENDS OF SUBSIDIARY 34,473 34,473 -------- ---------- -------- -------- -------- ---------- ---------- TOTAL FIXED CHARGES 0 0 0 0 139 12,098 423,145 -------- ---------- -------- -------- -------- ---------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 342,952 (268) (1,250) (131) 788 (377,449) 647,154 INCOME TAXES (11) (94) (206) (46) 268 2 231,118 -------- ---------- -------- -------- -------- ---------- ---------- NET INCOME (LOSS) 342,963 (174) (1,044) (85) 520 (377,451) 416,036 DIVIDENDS ON PREFERRED STOCK (34,473) 0 -------- ---------- -------- -------- -------- ---------- ---------- NET INCOME (LOSS) FOR COMMON STOCK 342,963 (174) (1,044) (85) 520 (342,978) 416,036 EQUITY IN EARNINGS OF SUBSIDIARIES (405,156) 0 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0 INTEREST ON NOTE HELD BY PARENT (NET OF TAX BENEFIT OF $5,211) 0 CASH DIVIDENDS ON COMMON STOCK 342,947 (1,035,929) 487,927 -------- ---------- -------- -------- -------- ---------- ---------- NET INCREASE (DECREASE) IN RETAINED EARNINGS 16 (174) (1,044) (85) 520 287,795 (71,891) RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 0 0 (1,433) (3,993) 0 (1,354,096) 1,254,584 TAX BENEFIT ON DIVIDENDS PAID TO ESOP 8,939 REACQUISITION OF PREFERRED STOCK 402 (402) ADJUSTMENT TO ADDITIONAL PAID-IN CAPITAL (155) 155 0 TERMINATION OF OPERATIONS (520) 520 0 -------- ---------- -------- -------- -------- ---------- ---------- RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $16 ($174) ($2,477) ($4,233) $0 ($1,065,224) $1,191,230 ======== ========== ======== ======== ======== ========== ========== EARNINGS (LOSS) PER COMMON SHARE (1) $0.00 $0.00 ($0.01) $0.00 $0.00 $3.20 ======== ========== ======== ======== ======== ========== ========== (1) BASED ON WEIGHTED AVERAGE COMMON LEGEND OF SUBSIDIARY NAMES: SHARES OUTSTANDING OF HOUSTON ---------------------------- INDUSTRIES INCORPORATED (000) - 130,004 HIDI - HOUSTON INDUSTRIES (DELAWARE) INCORPORATED HIPI - HOUSTON INDUSTRIES PRODUCTS, INC. NOTE: URS - UTILITY RAIL SERVICES, INC. - ----- PFI - PRIMARY FUELS, INC. UTILITY RELATED BUSINESS OF UTILITY FUELS, INC. WAS MERGED HIFI - HOUSTON INDUSTRIES FINANCE, INC. WITH HL&P ON OCTOBER 8, 1993. NON-UTILITY BUSINESS WAS TRANSFERRED TO URS, A NEWLY FORMED SUBSIDIARY.
14 of 30 EXHIBIT A-2 HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES CONSOLIDATING BALANCE SHEET - ASSETS DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
HII HL&P KBLCOM DVI HASA HIEI HIBI --------- ----------- ---------- ------- ------- ------- --------- ASSETS: PROPERTY, PLANT, AND EQUIPMENT, AT COST: ELECTRIC PLANT $11,919,235 ELECTRIC PLANT AQUISITION ADJUSTMENTS 3,166 NUCLEAR FUEL 211,785 CABLE TELEVISION PROPERTY $ 372,178 OTHER PROPERTY $ 12,344 $ 236 $26,035 ---------- ----------- ---------- ------- ------- ------- ------- TOTAL PROPERTY, PLANT AND EQUIPMENT 12,344 12,134,186 372,178 0 0 236 26,035 LESS: ACCUMULATED DEPRECIATION AND AMORTIZATION 8,814 3,194,127 151,671 8 ---------- ----------- ---------- ------- ------- ------- ------- PROPERTY, PLANT AND EQUIPMENT-NET 3,530 8,940,059 220,507 0 0 228 26,035 ---------- ----------- ---------- ------- ------- ------- ------- INVESTMENT IN ASSOCIATED COMPANIES 3,526,833 ---------- ----------- ---------- ------- ------- ------- ------- CURRENT ASSETS: CASH AND CASH EQUIVALENTS 148 12,413 $ 7 $ 996 258 332 SPECIAL DEPOSITS 11,834 ACCOUNTS RECEIVABLE - CUSTOMERS 4,961 ACCOUNTS RECEIVABLE - OTHER 553 2,540 7,441 317 224 78 ACCRUED UNBILLED REVENUES 29,322 ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES 48,276 1,792 653 17 544 NOTES RECEIVABLE FROM ASSOCIATED COMPANIES 805,567 FUEL STOCK, AT LIFO COST 58,585 MATERIALS & SUPPLIES, AT AVERAGE COST 160,371 6,072 OTHER 4,883 9,234 3,148 11 10 3,117 ---------- ----------- ---------- ------- ------- ------ ------- TOTAL CURRENT ASSETS 859,427 286,091 21,622 977 1,248 890 3,449 ---------- ----------- ---------- ------- ------- ------ ------- OTHER ASSETS: CABLE TELEVISION FRANCHISES AND INTANGIBLE ASSETS 984,032 DEFERRED PLANT COSTS 664,699 DEFERRED DEBITS 30,166 333,620 59,224 11,184 605 2,479 1 UNAMORTIZED DEBT EXPENSE AND PREMIUM ON REACQUIRED DEBT 2,508 164,368 EQUITY INVESTMENT IN CABLE TELEVISION PARTNERSHIPS 122,531 EQUITY INVESTMENT IN FOREIGN ELECTRIC UTILITY 36,984 REGULATORY ASSET - NET 246,763 RECOVERABLE PROJECT COSTS 118,016 ---------- ----------- ---------- ------- ------- ------ ------- TOTAL OTHER ASSETS 32,674 1,527,466 1,165,787 11,184 37,589 2,479 1 ---------- ----------- ---------- ------- ------- ------ ------- TOTAL $4,422,464 $10,753,616 $1,407,916 $12,161 $38,837 $3,597 $29,485 ========== =========== ========== ======= ======= ====== =======
15 of 30 EXHIBIT A-2 HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES CONSOLIDATING BALANCE SHEET - ASSETS DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
ELIMINATIONS/ HIDI HIPI URS PFI RECLASSIFICATION CONSOLIDATED --------- --------- -------- ------- ---------------- ------------ ASSETS: PROPERTY, PLANT, AND EQUIPMENT, AT COST: ELECTRIC PLANT $11,919,235 ELECTRIC PLANT AQUISITION ADJUSTMENTS 3,166 NUCLEAR FUEL 211,785 CABLE TELEVISION PROPERTY 372,178 OTHER PROPERTY $ 1 $9,282 ($404) 47,494 --------- --------- -------- ------- ---------- ----------- TOTAL PROPERTY, PLANT AND EQUIPMENT 0 1 9,282 0 (404) 12,553,858 LESS: ACCUMULATED DEPRECIATION AND AMORTIZATION 16 846 134 3,355,616 --------- --------- -------- ------- ---------- ----------- PROPERTY, PLANT AND EQUIPMENT-NET 0 (15) 8,436 0 (538) 9,198,242 --------- --------- -------- ------- ---------- ----------- INVESTMENT IN ASSOCIATED COMPANIES $150,978 (3,677,811) 0 --------- --------- -------- ------- ---------- ----------- CURRENT ASSETS: CASH AND CASH EQUIVALENTS 37 53 61 579 14,884 SPECIAL DEPOSITS 11,834 ACCOUNTS RECEIVABLE - CUSTOMERS 24 4,985 ACCOUNTS RECEIVABLE - OTHER 11,153 ACCRUED UNBILLED REVENUES 29,322 ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES 64 (51,346) 0 NOTES RECEIVABLE FROM ASSOCIATED COMPANIES 300 (805,867) 0 FUEL STOCK, AT LIFO COST 58,585 MATERIALS & SUPPLIES, AT AVERAGE COST 34 166,477 OTHER 25 4 20,432 --------- --------- -------- ------- ---------- ----------- TOTAL CURRENT ASSETS 37 136 429 0 (856,634) 317,672 --------- --------- -------- ------- ---------- ----------- OTHER ASSETS: CABLE TELEVISION FRANCHISES AND INTANGIBLE ASSETS 984,032 DEFERRED PLANT COSTS 664,699 DEFERRED DEBITS 279 6,375 (72,160) 371,773 UNAMORTIZED DEBT EXPENSE AND PREMIUM ON REACQUIRED DEBT 2,589 169,465 EQUITY INVESTMENT IN CABLE TELEVISION PARTNERSHIPS 122,531 EQUITY INVESTMENT IN FOREIGN ELECTRIC UTILITY 36,984 REGULATORY ASSET - NET 246,763 RECOVERABLE PROJECT COSTS 118,016 --------- --------- -------- ------- ---------- ----------- TOTAL OTHER ASSETS 0 279 6,375 0 (69,571) 2,714,263 --------- --------- -------- ------- ---------- ----------- TOTAL $151,015 $400 $15,240 $0 ($4,604,554) $12,230,177 ========= ========= ======== ======= ========== ===========
16 of 30 EXHIBIT A-2 HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES CONSOLIDATING BALANCE SHEET - LIABILITIES DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
HII HL&P KBLCOM DVI HASA HIEI HIBI ---------- ----------- ---------- -------- -------- -------- -------- LIABILITIES AND STOCKHOLDERS' EQUITY: SHAREHOLDERS' EQUITY: COMMON STOCK $2,415,256 $ 1,675,927 $ 718,043 $23,867 $37,413 $ 5 $ 1 NOTE RECEIVABLE - ESOP (332,489) RETAINED EARNINGS 1,191,327 2,028,924 (944,630) (10,638) 181 (1,841) (1) PREFERRED STOCK 518,590 ---------- ------------ ---------- -------- ------- ------- ------- TOTAL SHAREHOLDERS' EQUITY 3,274,094 4,223,441 (226,587) 13,229 37,594 (1,836) 0 ---------- ------------ ---------- -------- ------- ------- ------- LONG-TERM DEBT: FIRST MORTGAGE BONDS 3,019,843 OTHER LONG-TERM DEBT - NET 548,544 170,228 504,580 LONG-TERM DEBT OF ASSOCIATED COMPANIES 694,097 26,075 ---------- ------------ ---------- -------- ------- ------- ------- TOTAL LONG-TERM DEBT 548,544 3,190,071 1,198,677 0 0 0 26,075 ---------- ------------ ---------- -------- ------- ------- ------- TOTAL CAPITALIZATION 3,822,638 7,413,512 972,090 13,229 37,594 (1,836) 26,075 ---------- ------------ ---------- -------- ------- ------- ------- CURRENT LIABILITIES: NOTES PAYABLE 420,285 171,100 NOTES PAYABLE TO ASSOCIATED COMPANIES 17,400 57,700 400 252 ACCOUNTS PAYABLE 30,612 190,583 35,508 634 1,822 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 1,456 8,449 797 135 917 2,237 3 TAXES ACCRUED (22,164) 187,517 (1,262) (1,579) 322 (552) 1,329 INTEREST ACCRUED 8,456 65,238 25,701 9 DIVIDENDS ACCRUED 97,994 ACCRUED LIABILITIES TO MUNICIPALITIES 22,589 CURRENT PORTION OF LONG-TERM DEBT AND PREFERRED STOCK 44,725 10,384 OTHER 1,808 129,211 2,759 ---------- ------------ ---------- -------- ------- ------- ------- TOTAL CURRENT LIABILITIES 555,847 819,412 131,587 (1,444) 1,239 2,728 3,406 ---------- ------------ ---------- -------- ------- ------- ------- DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES (16,871) 1,798,976 297,624 171 (825) 4 UNAMORTIZED INVESTMENT TAX CREDIT 430,996 3,601 OTHER 60,850 290,720 3,014 205 4 3,530 ---------- ------------ ---------- -------- ------- ------- ------- TOTAL DEFERRED CREDITS 43,979 2,520,692 304,239 376 4 2,705 4 ---------- ------------ ---------- -------- ------- ------- ------- TOTAL $4,422,464 $10,753,616 $1,407,916 $12,161 $38,837 $ 3,597 $29,485 ========== ============ ========== ======== ======= ======= =======
17 of 30 EXHIBIT A-2 HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES CONSOLIDATING BALANCE SHEET - LIABILITIES DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
ELIMINATIONS/ HIDI HIPI URS PFI RECLASSIFICATION CONSOLIDATED --------- ----------- ---------- -------- ---------------- ------------- LIABILITIES AND STOCKHOLDERS' EQUITY: SHAREHOLDERS' EQUITY: COMMON STOCK $151,002 $ 261 $ 6,160 $ 5 ($2,612,684) $ 2,415,256 NOTE RECEIVABLE - ESOP (332,489) RETAINED EARNINGS 16 (174) (2,477) (4,233) (1,065,224) 1,191,230 PREFERRED STOCK 518,590 --------- ------------ ---------- -------- ----------- ----------- TOTAL SHAREHOLDERS' EQUITY 151,018 87 3,683 (4,228) (3,677,908) 3,792,587 --------- ------------ ---------- -------- ----------- ----------- LONG-TERM DEBT: FIRST MORTGAGE BONDS 3,019,843 OTHER LONG-TERM DEBT - NET 1,223,352 LONG-TERM DEBT OF ASSOCIATED COMPANIES (720,172) 0 --------- ------------ ---------- -------- ----------- ----------- TOTAL LONG-TERM DEBT 0 0 0 0 (720,172) 4,243,195 --------- ------------ ---------- -------- ----------- ----------- TOTAL CAPITALIZATION 151,018 87 3,683 (4,228) (4,398,080) 8,035,782 --------- ------------ ---------- -------- ----------- ----------- CURRENT LIABILITIES: NOTES PAYABLE 591,385 NOTES PAYABLE TO ASSOCIATED COMPANIES 9,943 (85,695) 0 ACCOUNTS PAYABLE 20 (19,365) 239,814 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 178 152 (14,324) 0 TAXES ACCRUED (3) (37) (413) 2,432 21,913 187,503 INTEREST ACCRUED (15,226) 84,178 DIVIDENDS ACCRUED 7,213 105,207 ACCRUED LIABILITIES TO MUNICIPALITIES 22,589 CURRENT PORTION OF LONG-TERM DEBT AND PREFERRED STOCK 55,109 OTHER 152 1,576 (7,214) 128,292 --------- ------------ ---------- -------- ----------- ----------- TOTAL CURRENT LIABILITIES (3) 313 9,682 4,008 (112,698) 1,414,077 --------- ------------ ---------- -------- ----------- ----------- DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 1,813 220 (93,776) 1,987,336 UNAMORTIZED INVESTMENT TAX CREDIT 434,597 OTHER 62 358,385 --------- ------------ ---------- -------- ----------- ----------- TOTAL DEFERRED CREDITS 0 0 1,875 220 (93,776) 2,780,318 --------- ------------ ---------- -------- ----------- ----------- TOTAL $151,015 $400 $15,240 $0 ($4,604,554) $12,230,177 ========== ============ ========== ======== =========== ===========
18 of 30 KBLCOM INCORPORATED AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT) TWELVE MONTHS ENDED DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL KBL KBLCOM KBL CABLE, INC. KBL VENTURES COMMUNICATIONS, INCORPORATED CONSOLIDATED PROPERTIES, INC. INCORPORATED INC. ------------ --------------- ---------------- -------------- -------------- OPERATING REVENUES $243,904 ------------ --------------- ---------------- -------------- -------------- OPERATING EXPENSES: CABLE TELEVISION $10,063 138,531 ($584) $3 $12 DEPRECIATION AND AMORTIZATION 786 77,500 170 3 ------------ --------------- ---------------- -------------- -------------- TOTAL 10,849 216,031 (414) 6 12 ------------ --------------- ---------------- -------------- -------------- OPERATING INCOME (LOSS) (10,849) 27,873 414 (6) (12) ------------ --------------- ---------------- -------------- -------------- OTHER INCOME (EXPENSE) - NET (2,861) (304) (1) (348) 32,408 ------------ --------------- ---------------- -------------- -------------- FIXED CHARGES: INTEREST ON LONG-TERM DEBT 2,304 44,560 OTHER INTEREST (25,951) 29,327 321 347 (347) ------------ --------------- ---------------- -------------- -------------- TOTAL FIXED CHARGES (23,647) 73,887 321 347 (347) ------------ --------------- ---------------- -------------- -------------- INCOME (LOSS) BEFORE INCOME TAXES 9,937 (46,318) 92 (701) 32,743 ------------ --------------- ---------------- -------------- -------------- INCOME TAXES 3,456 (8,186) 32 367 12,879 ------------ --------------- ---------------- -------------- -------------- EARNINGS (LOSS) FOR COMMON STOCK 6,481 (38,132) 60 (1,068) 19,864 EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (19,493) 0 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT (19,097) 0 INTEREST ON NOTE HELD BY PARENT (NET OF TAX BENEFIT OF $5,211) (9,679) ------------ --------------- ---------------- -------------- -------------- NET CHANGE TO RETAINED EARNINGS (DEFICIT) (41,788) (38,132) 60 (1,068) 19,864 ------------ --------------- ---------------- -------------- -------------- RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (363,723) (421,216) 149 (898) (37,014) ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) (414) 414 ------------ --------------- ---------------- -------------- -------------- RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (364,137) (420,802) 149 (898) (37,014) COMMON STOCK DIVIDEND (350,000) RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($755,925) ($458,934) $209 ($1,966) ($17,150) ============ =============== ================ ============== ============== EARNINGS (LOSS) PER COMMON SHARE (1) $0.05 ($0.29) $0.00 ($0.00) $0.15 ============ =============== ================ ============== ==============
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004 (2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT A 1992 TAX ADJUSTMENT.
KBL INTEGRATED FIBRCOM ELIMINATIONS/ SERVICES, INC. INCORPORATED RECLASSIFICATION CONSOLIDATED -------------- ------------ ---------------- ------------ OPERATING REVENUES $163 $244,067 -------------- ------------ ---------------- ------------ OPERATING EXPENSES: CABLE TELEVISION $68 234 ($2) 148,325 DEPRECIATION AND AMORTIZATION 67 (614) 77,912 -------------- ------------ ---------------- ------------ TOTAL 68 301 (616) 226,237 -------------- ------------ ---------------- ------------ OPERATING INCOME (LOSS) (68) (138) 616 17,830 -------------- ------------ ---------------- ------------ OTHER INCOME (EXPENSE) - NET (128) 2 28,768 -------------- ------------ ---------------- ------------ FIXED CHARGES: INTEREST ON LONG-TERM DEBT 613 47,477 OTHER INTEREST 3,697 -------------- ------------ ---------------- ------------ TOTAL FIXED CHARGES 0 0 613 51,174 -------------- ------------ ---------------- ------------ INCOME (LOSS) BEFORE INCOME TAXES (68) (266) 5 (4,576) -------------- ------------ ---------------- ------------ INCOME TAXES (24) (89) 1 8,436 -------------- ------------ ---------------- ------------ EARNINGS (LOSS) FOR COMMON STOCK (44) (177) 4 (13,012) EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES 19,493 0 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT (19,097) INTEREST ON NOTE HELD BY PARENT (NET OF TAX BENEFIT OF $5,211) (9,679) -------------- ------------ ---------------- ------------ NET CHANGE TO RETAINED EARNINGS (DEFICIT) (44) (177) 19,497 (41,788) -------------- ------------ ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 0 0 269,860 (552,842) ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) 0 -------------- ------------ ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED 0 0 269,860 (552,842) COMMON STOCK DIVIDEND (350,000) RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($44) ($177) $289,357 ($944,630) ============== ============ ================ ============ EARNINGS (LOSS) PER COMMON SHARE (1) ($0.00) ($0.00) ($0.10) ============== ============ ================ ============
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING OF HOUSTON INDUSTRIES INCORPORATED (000'S) - (2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT A 1992 TAX ADJUSTMENT. 19 OF 30 KBLCOM INCORPORATED AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL KBL KBLCOM KBL CABLE, INC. KBL VENTURES COMMUNICATIONS INCORPORATED CONSOLIDATED PROPERTIES, INC. INCORPORATED INC. ------------ --------------- ---------------- -------------- -------------- ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 2,084 ACCOUNTS RECEIVABLE - OTHER $445,577 (427,877) ($2,034) ($9,737) $4,061 ACCOUNTS RECEIVABLE - CUSTOMER 4,903 INVENTORIES 6,073 OTHER 477 2,692 ------------ --------------- ---------------- -------------- -------------- TOTAL CURRENT ASSETS 446,054 (412,125) (2,034) (9,737) 4,061 ------------ --------------- ---------------- -------------- -------------- PROPERTY, PLANT AND EQUIPMENT 4,641 359,489 $4,999 ACCUMULATED DEPRECIATION (1,978) (148,805) (756) ------------ --------------- ---------------- -------------- -------------- NET PROPERTY, PLANT AND EQUIPMENT 2,663 210,684 4,243 0 0 ------------ --------------- ---------------- -------------- -------------- OTHER ASSETS: CABLE TELEVISION INVESTMENT 0 INVESTMENT IN ASSOCIATED COMPANIES 358,627 0 8,706 122,314 FRANCHISES & INTANGIBLE ASSETS 983,984 48 DEFERRED DEBITS AND OTHER INVESTMENTS (47,295) 95,577 (70) 93 2,448 ------------ --------------- ---------------- -------------- -------------- TOTAL OTHER ASSETS 311,332 1,079,561 (22) 8,799 124,762 ------------ --------------- ---------------- -------------- -------------- TOTAL $760,049 $878,120 $2,187 ($938) $128,823 ============ =============== ================ ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: COMMON STOCK $718,043 $564,913 $2,039 $1 $81,030 RETAINED EARNINGS (DEFICIT) (755,925) (458,934) 209 (1,966) (17,150) PREFERRED STOCK 0 ------------ --------------- ---------------- -------------- -------------- TOTAL STOCKHOLDERS' EQUITY (37,882) 105,979 2,248 (1,965) 63,880 ------------ --------------- ---------------- -------------- -------------- LONG-TERM DEBT: LONG-TERM DEBT 514,964 LONG-TERM DEBT OF ASSOCIATED COMPANIES 694,097 0 ------------ --------------- ---------------- -------------- -------------- TOTAL LONG-TERM DEBT 694,097 514,964 0 0 0 ------------ --------------- ---------------- -------------- -------------- TOTAL CAPITALIZATION 656,215 620,943 2,248 (1,965) 63,880 ------------ --------------- ---------------- -------------- -------------- CURRENT LIABILITIES: ACCOUNTS PAYABLE 26,514 29,657 18 1,662 4,408 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0 NOTES PAYABLE TO ASSOCIATED COMPANIES 74,800 (17,100) INTEREST PAYABLE TO ASSOCIATED COMPANIES 0 CURRENT PORTION OF LONG-TERM DEBT OTHER 2,760 ------------ --------------- ---------------- -------------- -------------- TOTAL CURRENT LIABILITIES 101,314 15,317 18 1,662 4,408 ------------ --------------- ---------------- -------------- -------------- DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 959 237,961 (79) (635) 59,376 UNAMORTIZED INVESTMENT TAX CREDIT 2,442 1,159 OTHER 1,561 1,457 ------------ --------------- ---------------- -------------- -------------- TOTAL DEFERRED CREDITS 2,520 241,860 (79) (635) 60,535 ------------ --------------- ---------------- -------------- -------------- TOTAL $760,049 $878,120 $2,187 ($938) $128,823 ============ =============== ================ ============== ==============
KBL INTEGRATED FIBRCOM ELIMINATIONS/ SERVICES, INC. INCORPORATED RECLASSIFICATION CONSOLIDATED ------------- ------------ ---------------- ------------ ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS ($2,084) $0 ACCOUNTS RECEIVABLE - OTHER ($113) ($2,442) 6 7,441 ACCOUNTS RECEIVABLE - CUSTOMER 58 4,961 INVENTORIES (1) 6,072 OTHER 31 (52) 3,148 -------------- ------------ ---------------- ------------ TOTAL CURRENT ASSETS (113) (2,353) (2,131) 21,622 -------------- ------------ ---------------- ------------ PROPERTY, PLANT AND EQUIPMENT 3,050 (1) 372,178 ACCUMULATED DEPRECIATION (132) (151,671) -------------- ------------ ---------------- ------------ NET PROPERTY, PLANT AND EQUIPMENT 0 2,918 (1) 220,507 -------------- ------------ ---------------- ------------ OTHER ASSETS: CABLE TELEVISION INVESTMENT 0 INVESTMENT IN ASSOCIATED COMPANIES (118) (366,998) 122,531 FRANCHISES & INTANGIBLE ASSETS 984,032 DEFERRED DEBITS AND OTHER INVESTMENTS 46 59 8,366 59,224 -------------- ------------ ---------------- ------------ TOTAL OTHER ASSETS 46 (59) (358,632) 1,165,787 -------------- ------------ ---------------- ------------ TOTAL ($67) $506 ($360,764) $1,407,916 ============== ============= ================ ============ LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: COMMON STOCK $1 $1 ($647,985) $718,043 RETAINED EARNINGS (DEFICIT) (44) (177) 289,357 (944,630) PREFERRED STOCK 0 -------------- ------------ ---------------- ------------ TOTAL STOCKHOLDERS' EQUITY (43) (176) (358,628) (226,587) -------------- ------------ ---------------- ------------ LONG-TERM DEBT: LONG-TERM DEBT (10,384) 504,580 LONG-TERM DEBT OF ASSOCIATED COMPANIES 694,097 -------------- ------------ ---------------- ------------ TOTAL LONG-TERM DEBT 0 0 (10,384) 1,198,677 -------------- ------------ ---------------- ------------ TOTAL CAPITALIZATION (43) (176) (369,012) 972,090 -------------- ------------ ---------------- ------------ CURRENT LIABILITIES: ACCOUNTS PAYABLE (24) 644 (18,148) 44,731 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 797 797 NOTES PAYABLE TO ASSOCIATED COMPANIES 57,700 INTEREST PAYABLE TO ASSOCIATED COMPANIES 15,216 15,216 CURRENT PORTION OF LONG-TERM DEBT 10,384 10,384 OTHER (1) 2,759 -------------- ------------ ---------------- ------------ TOTAL CURRENT LIABILITIES (24) 644 8,248 131,587 -------------- ------------ ---------------- ------------ DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 41 1 297,624 UNAMORTIZED INVESTMENT TAX CREDIT 3,601 OTHER (3) (1) 3,014 -------------- ------------ ---------------- ------------ TOTAL DEFERRED CREDITS 0 38 0 304,239 -------------- ------------ ---------------- ------------ TOTAL ($67) $506 ($360,764) $1,407,916 ============== ============ ================ ============
20 of 30 KBL CABLE, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT) TWELVE MONTHS ENDED DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL CABLESYSTEMS OF THE KBL SOUTHWEST, INC. KBL - TV ELIMINATIONS/ CABLE, INC. CONSOLIDATED INCORPORATED RECLASSIFICATION CONSOLIDATED ------------ ---------------- ------------- ---------------- ------------- OPERATING REVENUES $233,467 $10,437 $243,904 ---------- ---------- -------- -------- ---------- OPERATING EXPENSES: CABLE TELEVISION ($605) 129,595 9,541 138,531 DEPRECIATION AND AMORTIZATION 6,331 70,295 874 77,500 ---------- ---------- -------- -------- ---------- TOTAL 5,726 199,890 10,415 0 216,031 ---------- ---------- -------- -------- ---------- OPERATING INCOME (LOSS) (5,726) 33,577 22 0 27,873 ---------- ---------- -------- -------- ---------- OTHER INCOME (EXPENSE) - NET (867) 565 (2) (304) ---------- ---------- -------- -------- ---------- FIXED CHARGES: INTEREST ON LONG-TERM DEBT 44,996 (436) 44,560 OTHER INTEREST (52,413) 81,740 29,327 ---------- ---------- -------- -------- ---------- TOTAL FIXED CHARGES (7,417) 81,304 0 0 73,887 ---------- ---------- -------- -------- ---------- INCOME (LOSS) BEFORE INCOME TAXES 824 (47,162) 20 0 (46,318) ---------- ---------- -------- -------- ---------- INCOME TAXES (8,315) 129 (8,186) ---------- ---------- -------- -------- ---------- EARNINGS (LOSS) FOR COMMON STOCK 9,139 (47,291) 20 0 (38,132) EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (30,153) 0 $30,153 0 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0 0 0 ---------- ---------- -------- -------- ---------- NET CHANGE TO RETAINED EARNINGS (DEFICIT) (21,014) (47,291) 20 30,153 (38,132) ---------- ---------- -------- -------- ---------- RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (421,222) (221,397) (4,462) 225,865 (421,216) ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) (3,861) 0 4,275 414 ---------- ---------- -------- -------- ---------- RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (425,083) (221,397) (4,462) 230,140 (420,802) ---------- ---------- -------- -------- ---------- RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($446,097) ($268,688) ($4,442) $260,293 ($458,934) ========== ========== ======== ======== ========== EARNINGS (LOSS) PER COMMON SHARE (1) $0.07 ($0.36) $0.00 ($0.29) ========== ========== ======== -------- ========== (1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004 (2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT A 1992 TAX ADJUSTMENT.
21 of 30 KBL CABLE, INC. AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL CABLESYSTEMS OF THE KBL SOUTHWEST, INC. KBL - TV ELIMINATIONS/ CABLE, INC. CONSOLIDATED INCORPORATED RECLASSIFICATION CONSOLIDATED ----------- --------------- ------------- ----------------- ------------ ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS $9 $1,913 $162 $2,084 ACCOUNTS RECEIVABLE - OTHER 158,163 (580,643) (5,397) (427,877) ACCOUNTS RECEIVABLE - CUSTOMER 5,243 (340) 4,903 INVENTORIES 6,073 6,073 OTHER 2,576 116 2,692 ----------- --------- -------- --------- ---------- TOTAL CURRENT ASSETS 158,172 (564,838) (5,459) 0 (412,125) ----------- --------- -------- --------- ---------- PROPERTY, PLANT AND EQUIPMENT 27,267 327,024 5,198 359,489 ACCUMULATED DEPRECIATION (15,391) (130,732) (2,682) (148,805) ----------- --------- -------- --------- ---------- NET PROPERTY, PLANT AND EQUIPMENT 11,876 196,292 2,516 0 210,684 ----------- --------- -------- --------- ---------- OTHER ASSETS: CABLE TELEVISION INVESTMENT 0 0 INVESTMENT IN ASSOCIATED COMPANIES 600,692 0 ($600,692) 0 FRANCHISES & INTANGIBLE ASSETS 24,603 959,381 983,984 DEFERRED DEBITS AND OTHER INVESTMENTS 94,122 1,408 47 95,577 ----------- --------- -------- --------- ---------- TOTAL OTHER ASSETS 719,417 960,789 47 (600,692) 1,079,561 ----------- --------- -------- --------- ---------- TOTAL $889,465 $592,243 ($2,896) ($600,692) $878,120 =========== ========= ======== ========= ========== LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: PREFERRED STOCK $600,000 ($600,000) $0 COMMON STOCK $564,914 260,983 $1 (260,985) 564,913 RETAINED EARNINGS (DEFICIT) (446,097) (268,688) (4,442) 260,293 (458,934) ----------- --------- -------- --------- ---------- TOTAL STOCKHOLDERS' EQUITY 118,817 592,295 (4,441) (600,692) 105,979 ----------- --------- -------- --------- ---------- LONG-TERM DEBT: LONG-TERM DEBT 514,964 0 514,964 LONG-TERM DEBT OF ASSOCIATED COMPANIES 0 0 ----------- --------- -------- --------- ---------- TOTAL LONG-TERM DEBT 514,964 0 0 0 514,964 ----------- --------- -------- --------- ---------- TOTAL CAPITALIZATION 633,781 592,295 (4,441) (600,692) 620,943 ----------- --------- -------- --------- ---------- CURRENT LIABILITIES: ACCOUNTS PAYABLE 15,281 13,267 1,109 29,657 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0 0 NOTES PAYABLE TO ASSOCIATED COMPANIES (17,100) (17,100) INTEREST PAYABLE TO ASSOCIATED COMPANIES 0 0 OTHER 2,552 208 2,760 ----------- --------- -------- --------- ---------- TOTAL CURRENT LIABILITIES 15,281 (1,281) 1,317 0 15,317 ----------- --------- -------- --------- ---------- DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 237,961 0 237,961 UNAMORTIZED INVESTMENT TAX CREDIT 2,442 0 2,442 OTHER 1,229 228 1,457 ----------- --------- -------- --------- ---------- TOTAL DEFERRED CREDITS 240,403 1,229 228 0 241,860 ----------- --------- -------- --------- ---------- TOTAL $889,465 $592,243 ($2,896) ($600,692) $878,120 =========== ========= ======== ========= ==========
22 of 30 KBL CABLESYSTEMS OF THE SOUTHWEST, INC. AND SUBSIDIARIES CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT) TWELVE MONTHS ENDED DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL KBL KBL CABLESYSTEMS CABLESYSTEMS CABLESYSTEMS OF MULTNOMAH, OF MINNEAPOLIS, TVE OF THE INC. INC. KBL CABLE TRANSMISSION, SOUTHWEST, INC. CONSOLIDATED CONSOLIDATED TV, INC. INC. --------------- ------------ --------------- --------- ------------- OPERATING REVENUES $167,374 $19,004 $24,921 $17 --------------- ------------ --------------- --------- ------------- OPERATING EXPENSES: CABLE TELEVISION 91,086 10,525 15,453 0 7 DEPRECIATION AND AMORTIZATION 42,526 5,085 7,300 15 --------------- ------------ --------------- --------- ------------- TOTAL 133,612 15,610 22,753 0 22 --------------- ------------ --------------- --------- ------------- OPERATING INCOME (LOSS) 33,762 3,394 2,168 0 (5) --------------- ------------ --------------- --------- ------------- OTHER INCOME (EXPENSE) - NET 844 40 (352) --------------- ------------ --------------- --------- ------------- FIXED CHARGES: INTEREST ON LONG-TERM DEBT (334) (41) (46) OTHER INTEREST 35,364 8,346 13,797 ($1) --------------- ------------ --------------- --------- ------------- TOTAL FIXED CHARGES 35,030 8,305 13,751 (1) 0 --------------- ------------ --------------- --------- ------------- INCOME (LOSS) BEFORE INCOME TAXES (424) (4,871) (11,935) 1 (5) --------------- ------------ --------------- --------- ------------- INCOME TAXES 82 18 5 (0) --------------- ------------ --------------- --------- ------------- EARNINGS (LOSS) FOR COMMON STOCK (506) (4,889) (11,940) 1 (5) EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (46,681) 0 0 (286) DIVIDENDS ON PREFERRED STOCK HELD BY PARENT --------------- ------------ --------------- --------- ------------- NET CHANGE TO RETAINED EARNINGS (DEFICIT) (47,187) (4,889) (11,940) (285) (5) --------------- ------------ --------------- --------- ------------- RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (311,735) (21,874) (46,720) (1,007) 96 ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) 86,099 0 (42) (271) --------------- ------------ --------------- --------- ------------- RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (225,636) (21,874) (46,762) (1,278) 96 --------------- ------------ --------------- --------- ------------- RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($272,823) ($26,763) ($58,702) ($1,563) $91 =============== ============ =============== ========= ============= EARNINGS (LOSS) PER COMMON SHARE (1) ($0.00) ($0.04) ($0.09) $0.00 ($0.00) =============== ============ =============== ========= =============
DICKINSON PACIFIC KBL-PORTLAND ELIMINATIONS/ CABLESYSTEMS CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED ------------ --------------- ---------------- ------------ OPERATING REVENUES $22,151 $233,467 ------------ --------------- ---------------- ------------ OPERATING EXPENSES: CABLE TELEVISION 12,524 129,595 DEPRECIATION AND AMORTIZATION $7,197 8,172 70,295 ------------ --------------- ---------------- ------------ TOTAL 7,197 20,696 0 199,890 ------------ --------------- ---------------- ------------ OPERATING INCOME (LOSS) (7,197) 1,455 0 33,577 ------------ --------------- ---------------- ------------ OTHER INCOME (EXPENSE) - NET 114 ($81) 565 ------------ --------------- ---------------- ------------ FIXED CHARGES: INTEREST ON LONG-TERM DEBT (15) (436) OTHER INTEREST 13,313 10,921 81,740 ------------ --------------- ---------------- ------------ TOTAL FIXED CHARGES 13,313 10,906 0 81,304 ------------ --------------- ---------------- ------------ INCOME (LOSS) BEFORE INCOME TAXES (20,510) (9,337) (81) (47,162) ------------ --------------- ---------------- ------------ INCOME TAXES 24 129 ------------ --------------- ---------------- ------------ EARNINGS (LOSS) FOR COMMON STOCK (20,510) (9,361) (81) (47,291) EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES 46,967 0 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0 ------------ --------------- ---------------- ------------ NET CHANGE TO RETAINED EARNINGS (DEFICIT) (20,510) (9,361) 46,886 (47,291) ------------ --------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (48,639) (35,139) 243,621 (221,397) ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) (85,786) 0 ------------ --------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (48,639) (35,139) 157,835 (221,397) ------------ --------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($69,149) ($44,500) $204,721 ($268,688) ============ =============== ================ ============ EARNINGS (LOSS) PER COMMON SHARE (1) ($0.16) ($0.07) ($0.36) ============ =============== ================ ============
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004 (2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT THE MERGER OF KBL CABLESYSTEMS OF AMERICA, INC. AND KBL U.S. CABLESYSTEMS, INC. INTO KBL CABLESYSTEMS OF THE SOUTHWEST, INC., THE REORGANIZATION OF CERTAIN FINANCIAL INFORMATION AS A RESULT OF THIS MERGER AND THE RECLASSIFICATION OF CERTAIN INVESTMENT IN SUBSIDIARY BALANCES. 23 of 30 KBL CABLESYSTEMS OF THE SOUTHWEST, INC. AND SUBSIDIARIES CONSOLIDATING BALANCE SHEET DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL KBL KBL CABLESYSTEMS CABLESYSTEMS CABLESYSTEMS OF MULTNOMAH, OF MINNEAPOLIS, TVE OF THE INC. INC. KBL CABLE TRANSMISSION, SOUTHWEST, INC. CONSOLIDATED CONSOLIDATED TV, INC. INC. --------------- ------------- --------------- --------- ------------- ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS $1,791 $0 $18 ACCOUNTS RECEIVABLE - OTHER (194) (98,908) (178,833) ($139) ($130) ACCOUNTS RECEIVABLE - CUSTOMER 3,206 779 1,162 INVENTORIES 4,377 1 843 OTHER 1,893 32 177 --------------- ------------- --------------- --------- ------------- TOTAL CURRENT ASSETS 11,073 (98,096) (176,633) (139) (130) --------------- ------------- --------------- --------- ------------- PROPERTY, PLANT AND EQUIPMENT 198,281 $24,218 39,836 $252 ACCUMULATED DEPRECIATION (75,597) (7,609) (16,494) (30) --------------- ------------- --------------- --------- ------------- NET PROPERTY, PLANT AND EQUIPMENT 122,684 16,609 23,342 0 222 --------------- ------------- --------------- --------- ------------- OTHER ASSETS: CABLE TELEVISION INVESTMENT INVESTMENT IN ASSOCIATED COMPANIES (155,731) (234) 0 (1,194) FRANCHISES & INTANGIBLE ASSETS 603,202 63,999 110,365 DEFERRED DEBITS AND OTHER INVESTMENTS 1,181 0 45 --------------- ------------- --------------- --------- ------------- TOTAL OTHER ASSETS 448,652 63,765 110,410 (1,194) 0 --------------- ------------- --------------- --------- ------------- TOTAL $582,409 ($17,722) ($42,881) ($1,333) $92 =============== ============= =============== ========= ============= LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: PREFERRED STOCK $600,000 COMMON STOCK 260,983 $8,832 $13,101 $230 $1 RETAINED EARNINGS (DEFICIT) (272,823) (26,763) (58,702) (1,563) 91 --------------- ------------- --------------- --------- ------------- TOTAL STOCKHOLDERS' EQUITY 588,160 (17,931) (45,601) (1,333) 92 --------------- ------------- --------------- --------- ------------- LONG-TERM DEBT: LONG-TERM DEBT 0 0 LONG-TERM DEBT OF ASSOCIATED COMPANIES 0 0 --------------- ------------- --------------- --------- ------------- TOTAL LONG-TERM DEBT 0 0 0 0 0 --------------- ------------- --------------- --------- ------------- TOTAL CAPITALIZATION 588,160 (17,931) (45,601) (1,333) 92 --------------- ------------- --------------- --------- ------------- CURRENT LIABILITIES: ACCOUNTS PAYABLE 8,544 276 2,625 0 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0 0 NOTES PAYABLE TO ASSOCIATED COMPANIES (17,100) 0 0 INTEREST PAYABLE TO ASSOCIATED COMPANIES 0 0 OTHER 1,576 (67) 95 --------------- ------------- --------------- --------- ------------- TOTAL CURRENT LIABILITIES (6,980) 209 2,720 0 0 --------------- ------------- --------------- --------- ------------- DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 0 0 UNAMORTIZED INVESTMENT TAX CREDIT 0 0 OTHER 1,229 0 0 --------------- ------------- --------------- --------- ------------- TOTAL DEFERRED CREDITS 1,229 0 0 0 0 --------------- ------------- --------------- --------- ------------- TOTAL $582,409 ($17,722) ($42,881) ($1,333) $92 =============== ============= =============== ========= =============
DICKINSON PACIFIC KBL-PROTLAND ELIMINATIONS/ CABLESYSTEMS CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED ------------ --------------- ---------------- ------------ ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS $104 $1,913 ACCOUNTS RECEIVABLE - OTHER ($168,209) (134,230) (580,643) ACCOUNTS RECEIVABLE - CUSTOMER 96 5,243 INVENTORIES 852 6,073 OTHER 474 2,576 ------------ --------------- ---------------- ------------ TOTAL CURRENT ASSETS (168,209) (132,704) 0 (564,838) ------------ --------------- ---------------- ------------ PROPERTY, PLANT AND EQUIPMENT $29,996 34,441 327,024 ACCUMULATED DEPRECIATION (16,746) (14,256) (130,732) ------------ --------------- ---------------- ------------ NET PROPERTY, PLANT AND EQUIPMENT 13,250 20,185 0 196,292 ------------ --------------- ---------------- ------------ OTHER ASSETS: CABLE TELEVISION INVESTMENT 0 INVESTMENT IN ASSOCIATED COMPANIES $157,159 0 FRANCHISES & INTANGIBLE ASSETS 99,952 81,863 959,381 DEFERRED DEBITS AND OTHER INVESTMENTS 178 4 1,408 ------------ --------------- ---------------- ------------ TOTAL OTHER ASSETS 99,952 82,041 157,163 960,789 ------------ --------------- ---------------- ------------ TOTAL ($55,007) ($30,478) $157,163 $592,243 ============ =============== ================ ============ LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: PREFERRED STOCK $600,000 COMMON STOCK $14,142 $11,715 ($48,021) 260,983 RETAINED EARNINGS (DEFICIT) (69,149) (44,500) 204,721 (268,688) ------------ --------------- ---------------- ------------ TOTAL STOCKHOLDERS' EQUITY (55,007) (32,785) 156,700 592,295 ------------ --------------- ---------------- ------------ LONG-TERM DEBT: LONG-TERM DEBT 0 LONG-TERM DEBT OF ASSOCIATED COMPANIES 0 ------------ --------------- ---------------- ------------ TOTAL LONG-TERM DEBT 0 0 0 0 ------------ --------------- ---------------- ------------ TOTAL CAPITALIZATION (55,007) (32,785) 156,700 592,295 ------------ --------------- ---------------- ------------ CURRENT LIABILITIES: ACCOUNTS PAYABLE 1,822 13,267 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0 NOTES PAYABLE TO ASSOCIATED COMPANIES (17,100) INTEREST PAYABLE TO ASSOCIATED COMPANIES 0 OTHER 485 463 2,552 ------------ --------------- ---------------- ------------ TOTAL CURRENT LIABILITIES 0 2,307 463 (1,281) ------------ --------------- ---------------- ------------ DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 0 UNAMORTIZED INVESTMENT TAX CREDIT 0 OTHER 1,229 ------------ --------------- ---------------- ------------ TOTAL DEFERRED CREDITS 0 0 0 1,229 ------------ --------------- ---------------- ------------ TOTAL ($55,007) ($30,478) $157,163 $592,243 ============ =============== ================ ============
24 of 30 KBL CABLESYSTEMS OF MULTNOMAH, INC. CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT) TWELVE MONTHS ENDED DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL CABLESYSTEMS OF MULTNOMAH, KBL - MULTNOMAH ELIMINATIONS/ INC. CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED ------------- --------------- ---------------- ------------ OPERATING REVENUES $19,004 $19,004 ------------- --------------- ---------------- ------------ OPERATING EXPENSES: CABLE TELEVISION 10,525 10,525 DEPRECIATION AND AMORTIZATION $1 5,084 5,085 ------------- --------------- ---------------- ------------ TOTAL 1 15,609 0 15,610 ------------- --------------- ---------------- ------------ OPERATING INCOME (LOSS) (1) 3,395 0 3,394 ------------- --------------- ---------------- ------------ OTHER INCOME (EXPENSE) - NET 0 (8) $48 40 ------------- --------------- ---------------- ------------ FIXED CHARGES: INTEREST ON LONG-TERM DEBT (41) (41) OTHER INTEREST $133 8,213 8,346 ------------- --------------- ---------------- ------------ TOTAL FIXED CHARGES 133 8,172 0 8,305 ------------- --------------- ---------------- ------------ INCOME (LOSS) BEFORE INCOME TAXES (134) (4,785) 48 (4,871) ------------- --------------- ---------------- ------------ INCOME TAXES 18 18 ------------- --------------- ---------------- ------------ EARNINGS (LOSS) FOR COMMON STOCK (134) (4,803) 48 (4,889) EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (4,850) 4,850 0 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0 ------------- --------------- ---------------- ------------ NET CHANGE TO RETAINED EARNINGS (DEFICIT) (4,984) (4,803) 4,898 (4,889) ------------- --------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (19,645) (21,664) 19,435 (21,874) ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) (2,323) 2,323 0 ------------- --------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (21,968) (21,664) 21,758 (21,874) ------------- --------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($26,952) ($26,467) $26,656 ($26,763) ============= =============== ================ ============ EARNINGS (LOSS) PER COMMON SHARE (1) ($0.00) ($0.04) ($0.04) ============= =============== ================ ============
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004 (2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT THE RECLASSIFICATION OF CERTAIN INVESTMENT IN SUBSIDIARY BALANCES. 25 of 30 KBL CABLESYSTEMS OF MULTNOMAH, INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL CABLESYSTEMS OF MULTNOMAH, KBL - MULTNOMAH ELIMINATIONS/ INC. CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED ------------- --------------- ---------------- ------------ ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS ACCOUNTS RECEIVABLE - OTHER ($312) ($98,596) ($98,908) ACCOUNTS RECEIVABLE - CUSTOMER 0 779 779 INVENTORIES 0 1 1 OTHER 0 32 32 ------------- --------------- ---------------- ------------ TOTAL CURRENT ASSETS (312) (97,784) 0 (98,096) ------------- --------------- ---------------- ------------ PROPERTY, PLANT AND EQUIPMENT 24,218 $24,218 ACCUMULATED DEPRECIATION (7,609) (7,609) ------------- --------------- ---------------- ------------ NET PROPERTY, PLANT AND EQUIPMENT 0 16,609 0 16,609 ------------- --------------- ---------------- ------------ OTHER ASSETS: CABLE TELEVISION INVESTMENT 0 INVESTMENT IN ASSOCIATED COMPANIES (17,788) $17,554 (234) FRANCHISES & INTANGIBLE ASSETS 9 63,990 63,999 DEFERRED DEBITS AND OTHER INVESTMENTS 0 ------------- --------------- ---------------- ------------ TOTAL OTHER ASSETS (17,779) 63,990 17,554 63,765 ------------- --------------- ---------------- ------------ TOTAL ($18,091) ($17,185) $17,554 ($17,722) ============= =============== ================ ============ LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: COMMON STOCK $8,861 $8,832 ($8,861) $8,832 RETAINED EARNINGS (DEFICIT) (26,952) (26,467) 26,656 (26,763) ------------- --------------- ---------------- ------------ TOTAL STOCKHOLDERS' EQUITY (18,091) (17,635) 17,795 (17,931) ------------- --------------- ---------------- ------------ LONG-TERM DEBT: LONG-TERM DEBT 0 LONG-TERM DEBT OF ASSOCIATED COMPANIES 0 ------------- --------------- ---------------- ------------ TOTAL LONG-TERM DEBT 0 0 0 0 ------------- --------------- ---------------- ------------ TOTAL CAPITALIZATION (18,091) (17,635) 17,795 (17,931) ------------- --------------- ---------------- ------------ CURRENT LIABILITIES: ACCOUNTS PAYABLE 276 276 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0 NOTES PAYABLE TO ASSOCIATED COMPANIES 0 INTEREST PAYABLE TO ASSOCIATED COMPANIES 0 OTHER 174 (241) (67) ------------- --------------- ---------------- ------------ TOTAL CURRENT LIABILITIES 0 450 (241) 209 ------------- --------------- ---------------- ------------ DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 0 UNAMORTIZED INVESTMENT TAX CREDIT 0 OTHER 0 ------------- --------------- ---------------- ------------ TOTAL DEFERRED CREDITS 0 0 0 0 ------------- --------------- ---------------- ------------ TOTAL ($18,091) ($17,185) $17,554 ($17,722) ============= =============== ================ ============
26 of 30 KBL CABLESYSTEMS OF MINNEAPOLIS, INC. CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT) TWELVE MONTHS ENDED DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL CABLESYSTEMS KBL OF MINNEAPOLIS, CABLESYSTEMS OF ELIMINATIONS/ INC. MINNEAPOLIS LP RECLASSIFICATION CONSOLIDATED --------------- -------------- ---------------- ------------ OPERATING REVENUES $24,921 $24,921 --------------- -------------- ---------------- ------------ OPERATING EXPENSES: CABLE TELEVISION 15,453 15,453 DEPRECIATION AND AMORTIZATION $2,059 5,241 7,300 --------------- -------------- ---------------- ------------ TOTAL 2,059 20,694 0 22,753 --------------- -------------- ---------------- ------------ OPERATING INCOME (LOSS) (2,059) 4,227 0 2,168 --------------- -------------- ---------------- ------------ OTHER INCOME (EXPENSE) - NET 682 (1,067) $33 (352) --------------- -------------- ---------------- ------------ FIXED CHARGES: INTEREST ON LONG-TERM DEBT (46) (46) OTHER INTEREST 7,999 5,798 13,797 --------------- -------------- ---------------- ------------ TOTAL FIXED CHARGES 7,999 5,752 0 13,751 --------------- -------------- ---------------- ------------ INCOME (LOSS) BEFORE INCOME TAXES (9,376) (2,592) 33 (11,935) --------------- -------------- ---------------- ------------ INCOME TAXES 5 5 --------------- -------------- ---------------- ------------ EARNINGS (LOSS) FOR COMMON STOCK (9,376) (2,597) 33 (11,940) EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (12,387) 12,387 0 DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0 --------------- -------------- ---------------- ------------ NET CHANGE TO RETAINED EARNINGS (DEFICIT) (21,763) (2,597) 12,420 (11,940) --------------- -------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (46,570) (49,742) 49,592 (46,720) ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) 823 (42) (823) (42) --------------- -------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (45,747) (49,784) 48,769 (46,762) --------------- -------------- ---------------- ------------ RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($67,510) ($52,381) $61,189 ($58,702) =============== ============== ================ ============ EARNINGS (LOSS) PER COMMON SHARE (1) ($0.07) ($0.02) ($0.09) =============== ============== ================ ============
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004 (2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT THE RECLASSIFICATION OF CERTAIN INVESTMENT IN SUBSIDIARY BALANCES AND THE REORGANIZATION OF CERTAIN FINANCIAL INFORMATION AS THE RESULT OF THE MERGER OF KBL CABLESYSTEMS OF AMERICA, INC. AND KBL U.S. CABLESYSTEMS, INC. INTO KBL CABLESYSTEMS OF THE SOUTHWEST, INC. 27 of 30 KBL CABLESYSTEMS OF MINNEAPOLIS, INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 1993 (THOUSANDS OF DOLLARS)
KBL CABLESYSTEMS KBL OF MINNEAPOLIS, CABLESYSTEMS OF ELIMINATIONS/ INC. MINNEAPOLIS LP RECLASSIFICATION CONSOLIDATED ----------------- --------------- ----------------- ------------ ASSETS: CURRENT ASSETS: CASH AND CASH EQUIVALENTS $3 $15 $18 ACCOUNTS RECEIVABLE - OTHER (110,653) (68,180) (178,833) ACCOUNTS RECEIVABLE - CUSTOMER 1,162 1,162 INVENTORIES 843 843 OTHER 51 126 177 ----------------- --------------- ----------------- ------------ TOTAL CURRENT ASSETS (110,599) (66,034) 0 (176,633) ----------------- --------------- ----------------- ------------ PROPERTY, PLANT AND EQUIPMENT (28,807) 68,643 39,836 ACCUMULATED DEPRECIATION 19,751 (36,245) (16,494) ----------------- --------------- ----------------- ------------ NET PROPERTY, PLANT AND EQUIPMENT (9,056) 32,398 0 23,342 ----------------- --------------- ----------------- ------------ OTHER ASSETS: CABLE TELEVISION INVESTMENT 0 INVESTMENT IN ASSOCIATED COMPANIES (47,586) $47,586 0 FRANCHISES & INTANGIBLE ASSETS 107,847 2,518 110,365 DEFERRED DEBITS AND OTHER INVESTMENTS (18) 63 45 ----------------- --------------- ----------------- ------------ TOTAL OTHER ASSETS 60,242 2,581 47,587 110,410 ----------------- --------------- ----------------- ------------ TOTAL ($59,413) ($31,055) $47,587 ($42,881) ================= =============== ================= ============ LIABILITIES AND STOCKHOLDERS' EQUITY: STOCKHOLDERS' EQUITY: COMMON STOCK $8,097 $18,384 ($13,380) $13,101 RETAINED EARNINGS (DEFICIT) (67,510) (52,381) 61,189 (58,702) ----------------- --------------- ----------------- ------------ TOTAL STOCKHOLDERS' EQUITY (59,413) (33,997) 47,809 (45,601) ----------------- --------------- ----------------- ------------ LONG-TERM DEBT: LONG-TERM DEBT 0 LONG-TERM DEBT OF ASSOCIATED COMPANIES 0 ----------------- --------------- ----------------- ------------ TOTAL LONG-TERM DEBT 0 0 0 0 ----------------- --------------- ----------------- ------------ TOTAL CAPITALIZATION (59,413) (33,997) 47,809 (45,601) ----------------- --------------- ----------------- ------------ CURRENT LIABILITIES: ACCOUNTS PAYABLE 2,625 2,625 ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0 NOTES PAYABLE TO ASSOCIATED COMPANIES 0 INTEREST PAYABLE TO ASSOCIATED COMPANIES 0 OTHER 317 (222) 95 ----------------- --------------- ----------------- ------------ TOTAL CURRENT LIABILITIES 0 2,942 (222) 2,720 ----------------- --------------- ----------------- ------------ DEFERRED CREDITS: ACCUMULATED DEFERRED INCOME TAXES 0 UNAMORTIZED INVESTMENT TAX CREDIT 0 OTHER 0 ----------------- --------------- ----------------- ------------ TOTAL DEFERRED CREDITS 0 0 0 0 ----------------- --------------- ----------------- ------------ TOTAL ($59,413) ($31,055) $47,587 ($42,881) ================= =============== ================= ============
28 of 30 EXHIBIT B --------- Organizational Chart of System Companies ---------------------------------------- Houston Industries Incorporated (a Texas corporation, "HI") Houston Argentina S.A. (100% owned by HI)* (an Argentine corporation, "HI Argentina") Compania de Inversiones en Electricidad S.A. (32.5% owned by HI Argentina) (an Argentine corporation, "COINELEC") Empresa Distribuidora La Plata S.A. (51% owned by COINELEC) (an Argentine corporation) Central Dique S.A. (51% owned by COINELEC) (an Argentine corporation) * Subject to the approval of the Argentine government, HI intends to transfer its ownership interest in HI Argentina to HI Energy. 29 of 30 EXHIBIT C --------- Financial Data Schedule ----------------------- Houston Industries Incorporated (Thousands of Dollars)
Consolidated Total Assets $12,230,177 Consolidated Total Operating Revenues $ 4,323,930 Consolidated Net Income $ 416,036
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