-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FspZ0pDB2x7/sf4K78z3qlA5vvmYnUIhd7/67TxpvcOhka6PpQk4kFzLoYfvs1E+ Q5J78BBlyca9a5wfGWgsyQ== 0000027430-97-000005.txt : 19971114 0000027430-97-000005.hdr.sgml : 19971114 ACCESSION NUMBER: 0000027430-97-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971112 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAYTON POWER & LIGHT CO CENTRAL INDEX KEY: 0000027430 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 310258470 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-02385 FILM NUMBER: 97712681 BUSINESS ADDRESS: STREET 1: PO BOX 8825 CITY: DAYTON STATE: OH ZIP: 45401 BUSINESS PHONE: 5132246000 MAIL ADDRESS: STREET 1: P O BOX 8825 CITY: DAYTON STATE: OH ZIP: 45401 10-Q 1 DP&L COMPANY 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1997 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------- -------- Commission File Number 1-2385 ------ THE DAYTON POWER AND LIGHT COMPANY (Exact name of registrant as specified in its charter) OHIO 31-0258470 - ------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) Courthouse Plaza Southwest Dayton, Ohio 45402 ---------------------------------------- (Address of principal executive offices) (937) 224-6000 ---------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO --- --- The registrant meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing this form with the reduced disclosure format. Indicate the number of shares of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $.01 par value 41,172,173 Shares ---------------------------- ----------------------------------- (Title of each class) (Outstanding at September 30, 1997) THE DAYTON POWER AND LIGHT COMPANY INDEX Page No. -------- Part I - Financial Information Item 1. Financial Statements Consolidated Statement of Results of Operations 1 Consolidated Statement of Cash Flows 2 Consolidated Balance Sheet 3 Notes to Consolidated Financial Statements 5 Operating Statistics 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II - Other Information 10 Signatures 11 i CONSOLIDATED STATEMENT OF RESULTS OF OPERATIONS The Dayton Power and Light Company Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 1997 1996 1997 1996 ---- ---- ---- ---- --millions-- --millions-- Income - ------ Utility service revenues-- Electric $260.6 $257.2 $748.4 $767.5 Gas and Other 23.3 21.0 162.6 161.8 ------ ------ ------ ------ Total Utility Service Revenues 283.9 278.2 911.0 929.3 Interest and other income 1.7 1.2 6.1 7.2 ------ ------ ------ ------ Total Income 285.6 279.4 917.1 936.5 ------ ------ ------ ------ Expenses - -------- Fuel and purchased power 59.5 57.8 165.7 174.1 Gas purchased for resale 10.8 9.7 97.6 93.7 Operation and maintenance 52.3 56.2 163.4 181.2 Depreciation and amortization 31.5 29.6 94.0 90.0 Amortization of regulatory assets, net 4.6 4.2 12.6 11.6 General taxes 33.5 32.3 100.4 96.3 Interest expense 20.3 22.4 64.0 66.6 ------ ------ ------ ------ Total Expenses 212.5 212.2 697.7 713.5 ------ ------ ------ ------ Income Before Income Taxes 73.1 67.2 219.4 223.0 Income taxes 28.8 25.5 79.6 85.4 ------ ------ ------ ------ Net Income 44.3 41.7 139.8 137.6 Preferred dividends 0.2 0.2 0.7 0.7 ------ ------ ------ ------ Earnings on Common Stock $ 44.1 $ 41.5 $139.1 $136.9 ====== ====== ====== ====== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -1- CONSOLIDATED STATEMENT OF CASH FLOWS The Dayton Power and Light Company Nine Months Ended September 30 ----------------- 1997 1996 ---- ---- --millions-- Operating Activities - -------------------- Cash received from utility customers $940.7 $954.1 Other operating cash receipts 7.2 7.7 Cash paid for: Fuel and purchased power (173.2) (166.7) Purchased gas (128.7) (133.5) Operation and maintenance labor (60.2) (60.4) Nonlabor operating expenditures (116.5) (142.8) Interest (68.6) (70.0) Income taxes (43.1) (62.9) Property, excise and payroll taxes (108.8) (103.8) ------ ------ Net cash provided by operating activities 248.8 221.7 Investing Activities - -------------------- Property expenditures (76.3) (80.2) Other activities (33.1) (103.9) ------ ------ Net cash used for investing activities (109.4) (184.1) Financing Activities - -------------------- Dividends paid on common stock (86.9) (103.9) Dividends paid on preferred stock (0.7) (0.7) Retirement of long-term debt (40.4) (0.4) Issuance (retirement) of short-term debt (4.0) 31.5 ------ ------ Net cash used for financing activities (132.0) (73.5) Cash and temporary cash investments-- - ----------------------------------- Net change 7.4 (35.9) Balance at beginning of period 2.1 39.1 ------ ------ Balance at end of period $ 9.5 $ 3.2 ====== ====== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -2- CONSOLIDATED BALANCE SHEET The Dayton Power and Light Company At At September 30, December 31, 1997 1996 ------------- ------------ --millions-- ASSETS - ------ Property $3,553.4 $3,493.2 - -------- Less-- Accumulated depreciation and amortization (1,330.0) (1,249.4) -------- -------- Net property 2,223.4 2,243.8 -------- -------- Current Assets - -------------- Cash and temporary cash investments 9.5 2.1 Accounts receivable, less provision for uncollectible accounts 152.5 193.4 Inventories, at average cost 80.3 75.2 Deferred property and excise taxes 49.7 87.3 Other 21.7 54.3 -------- -------- Total current assets 313.7 412.3 -------- -------- Other Assets - ------------ Financial assets 94.1 56.0 Income taxes recoverable through future revenues 214.4 222.4 Regulatory assets 121.7 137.3 Other 184.0 171.4 -------- -------- Total other assets 614.2 587.1 -------- -------- Total Assets $3,151.3 $3,243.2 ======== ======== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -3- CONSOLIDATED BALANCE SHEET (continued) The Dayton Power and Light Company At At September 30, December 31, 1997 1996 ------------- ------------ --millions-- CAPITALIZATION AND LIABILITIES - ------------------------------ Capitalization - -------------- Common shareholder's equity-- Common stock $ 0.4 $ 0.4 Other paid-in capital 739.0 738.9 Earnings reinvested in the business 505.2 478.2 -------- -------- Total common shareholder's equity 1,244.6 1,217.5 Preferred stock 22.9 22.9 Long-term debt 925.9 926.3 -------- -------- Total capitalization 2,193.4 2,166.7 -------- -------- Current Liabilities - ------------------- Accounts payable 66.3 109.6 Dividends payable 31.6 - Short-term debt 7.3 11.3 Accrued taxes 96.5 136.6 Accrued interest 15.9 21.6 Current deferred income tax 15.2 - Current portion of long-term debt 0.4 40.4 Other 28.6 49.1 -------- -------- Total current liabilities 261.8 368.6 -------- -------- Deferred Credits and Other - -------------------------- Deferred taxes 506.8 513.2 Unamortized investment tax credit 73.0 75.2 Other 116.3 119.5 -------- -------- Total deferred credits and other 696.1 707.9 -------- -------- Total Capitalization and Liabilities $3,151.3 $3,243.2 ======== ======== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -4- Notes to Consolidated Financial Statements 1. Reclassifications have been made in certain prior years' amounts to conform to the current reporting presentation of the Company. 2. The consolidated financial statements in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's 1996 Annual Report on Form 10-K. The information included in this Form 10-Q reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the periods presented. Any adjustments are of a normal recurring nature. -5- OPERATING STATISTICS The Dayton Power and Light Company Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 1997 1996 1997 1996 ---- ---- ---- ---- Electric - -------- Sales (millions of kWh)-- Residential 1,141 1,197 3,551 3,727 Commercial 953 895 2,604 2,608 Industrial 1,244 1,198 3,526 3,383 Other 968 814 2,611 2,510 ------- ------- ------- ------- Total 4,306 4,104 12,292 12,228 Revenues (thousands of dollars)-- Residential 102,024 107,348 304,323 321,665 Commercial 59,801 59,224 174,188 179,089 Industrial 59,633 57,800 167,462 166,729 Other 39,134 32,884 102,430 99,960 ------- ------- ------- ------- Total 260,592 257,256 748,403 767,443 Other Electric Statistics-- Average price per kWh--retail and wholesale customers (cents) 5.97 6.19 6.01 6.20 Fuel cost per net kWh generated (cents) 1.27 1.23 1.27 1.26 Electric customers at end of period 481,200 477,675 481,200 477,675 Average kWh use per residential customer 2,654 2,805 8,260 8,742 Peak demand-maximum one hour use (mw), (net) 2,848 2,887 2,848 2,887 -6- OPERATING STATISTICS (continued) The Dayton Power and Light Company Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 1997 1996 1997 1996 ---- ---- ---- ---- Gas - --- Sales (millions of MCF)-- Residential 2,006 1,841 19,035 20,838 Commercial 835 631 6,039 6,320 Industrial 164 158 1,729 2,743 Other 104 244 1,387 1,962 Transportation gas delivered 3,201 3,092 14,031 12,366 ------- ------- ------- ------- Total 6,310 5,966 42,221 44,229 Revenues (thousands of dollars)-- Residential 15,074 12,922 106,540 102,625 Commercial 4,601 3,544 30,824 28,636 Industrial 725 868 8,092 11,078 Other 2,940 3,317 16,384 16,643 ------- ------- ------- ------- Total 23,340 20,651 161,840 158,982 Other Gas Statistics-- Average price MCF-retail customers (dollars) 6.74 6.39 5.39 4.72 Gas customers at end of period 297,458 295,110 297,458 295,110 Degree Days (based on calendar month)-- Heating 111 107 3,729 4,027 Cooling 486 552 669 834 -7- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. The Company's earnings on common stock were $44.1 million for the third quarter, up $2.6 million from 1996. For the nine months ended September 30, 1997, earnings on common stock were $139.1 million compared to $136.9 million earned in the same period last year. Ongoing cost control efforts throughout the Company resulted in a reduction in operating and maintenance expenses, which offset retail electric sales levels through September that were 1% below last year. The financial condition and results of operations for the third quarter and nine months ended September 30, 1997 and 1996 are discussed below. Financial Condition - ------------------- Construction plans are subject to continuing review and are expected to be revised in light of changes in financial and economic conditions, load forecasts, legislative and regulatory developments and changing environmental standards, among other factors. The Company's ability to complete its capital projects and the reliability of future service will be affected by its financial condition, the availability of external funds at reasonable cost and adequate and timely rate increases. As of September 30, 1997, the Company's cash and temporary cash investment balance was $9.5 million. In addition, $94.1 million was invested in debt and equity financial assets. DPL Inc. and its subsidiaries have $200 million available through a Revolving Credit Agreement ("Credit Agreement"). As of September 30, 1997, DPL Inc. had no outstanding borrowings under this Credit Agreement. The Company has authority from the Public Utilities Commission of Ohio ("PUCO") to issue short term debt up to $200 million with a maximum debt limit of $300 million including loans from DPL Inc. under the terms of the Credit Agreement. The Company also has $97 million available in short-term informal lines of credit. As of September 30, 1997, the Company had $6.0 million in commercial paper outstanding. The Company anticipates that it has sufficient capacity to issue First Mortgage Bonds to satisfy its requirements in connection with the financing of its construction and refinancing programs during the five year period 1997-2001. -8- Results of Operations - --------------------- Utility service revenues increased by $5.7 million from the third quarter last year and decreased $18.3 million for the nine months ended September 30, 1997. An increase in electric sales to other utilities was the primary cause of the increase for the quarter. Increases in electric industrial sales and sales to other utilities were offset by reductions in other sales classes, due to the effects of mild weather as well as lower fuel cost recovery rates, resulting in the year-to-date variation. Fuel and purchased power increased $1.7 million compared to the corresponding quarter a year ago, and decreased $8.4 million year-to- date compared to 1996. Increased purchased power expenses from higher sales to other utilities caused the increase for the quarter. Decreased retail electric sales and lower fuel costs were the primary causes of the year-to-date variation. Gas purchased for resale increased $1.1 million and $3.9 million, respectively, for the third quarter and nine months ended September 30, 1997. Higher natural gas costs were partially offset by lower sales due to milder weather. Operation and maintenance expense decreased from last year by $3.9 million for the quarter and $17.8 million year-to-date. Lower employee benefit costs from a downward adjustment to the actuarially determined pension and retiree health care expenses, decreased production maintenance, and overall cost containment efforts contributed to the third quarter and year-to-date decreases. Depreciation and amortization increased by $1.9 million for the quarter and $4.0 million year-to-date compared to last year due to increased depreciable plant base. General taxes increased $1.2 million and $4.1 million compared to the third quarter and year-to-date 1997, respectively, due to higher property taxes from additional property. Income taxes increased $3.3 million from the corresponding quarter last year due to higher book income. Income taxes decreased $5.8 million from the year-to-date last year due to lower taxable income. -9- Part II. Other Information --------------------------- Item 5. Other Information. Rate Regulation and Government Legislation - ------------------------------------------ On April 24, 1996, the Federal Energy Regulatory Commission ("FERC") issued final rules requiring all electric utilities that own or control transmission facilities to file open-access transmission service tariffs. On July 31, 1997, FERC issued an order requiring the Company and other utilities to refile their open-access transmission tariffs with FERC. The Company filed their revised open-access transmission tariffs on August 15, 1997. On October 15, 1997, PUCO Commissioner David Johnson announced that he will resign effective November 30, 1997. Commissioner Johnson is serving a term that was scheduled to expire in April 1998. Item 6. Exhibits and Reports on Form 8-K. (b) Reports on Form 8-K ------------------- No reports on Form 8-K were filed by the Company during the quarter ended September 30, 1997. -10- SIGNATURES 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 thereunto duly authorized. THE DAYTON POWER AND LIGHT COMPANY ---------------------------------- (Registrant) Date: November 12, 1997 /s/ Paul R. Anderson ----------------- ---------------------------------- Paul R. Anderson Controller (Principal Accounting Officer) Date: November 12, 1997 /s/ Thomas M. Jenkins ----------------- ---------------------------------- Thomas M. Jenkins Group Vice President and Treasurer (Principal Financial Officer) -11- EX-27 2 FINANCIAL DATA SCHEDULE
UT 1,000 9-MOS DEC-31-1997 SEP-30-1997 PER-BOOK 2223400 0 313700 336100 278100 3151300 400 739000 505200 1244600 0 22900 925900 1300 0 6000 400 0 0 0 950200 3151300 911000 79600 633700 713300 197700 6100 203800 64000 139800 700 139100 86900 68600 248800 3.38 3.38
-----END PRIVACY-ENHANCED MESSAGE-----