-----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, Misy9ODqZdHzsTSLKj9AUFoIsRB1r5jX9xzBDF7UWRpsOa4Ahv2l9GtiHtRa6MK+ RIl5e7JuRtZShsr2pRaluw== 0000027430-95-000006.txt : 19951119 0000027430-95-000006.hdr.sgml : 19951119 ACCESSION NUMBER: 0000027430-95-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 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: 1934 Act SEC FILE NUMBER: 001-02385 FILM NUMBER: 95592449 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 10Q 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, 1995 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 incorporation or organization) Identification No.) Courthouse Plaza Southwest Dayton, Ohio 45402 (Address of principal executive offices) (513) 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, 1995) 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 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Part II - Other Information 11 Signatures 12 i
CONSOLIDATED STATEMENT OF RESULTS OF OPERATIONS The Dayton Power and Light Company Three Months Nine Months Ended Ended September 30 September 30 ------------- ------------- 1995 1994 1995 1994 ---- ---- ---- ---- --thousands-- --thousands-- Income - ------ Utility service revenues-- Electric $279,674 $242,734 $770,594 $719,342 Gas 20,593 20,442 148,420 169,740 Steam 406 765 4,375 5,479 ------- ------- ------- ------- Total utility service revenues 300,673 263,941 923,389 894,561 Interest and other income 2,939 1,408 7,807 8,527 ------- ------- ------- ------- Total Income 303,612 265,349 931,196 903,088 ------- ------- ------- ------- Expenses - -------- Fuel used in electric and steam production 68,543 54,819 192,244 168,249 Gas purchased for resale 9,670 10,597 90,303 107,383 Operation and maintenance 67,924 58,833 174,826 171,038 Depreciation and amortization 30,518 27,848 86,731 83,552 General taxes 31,288 29,934 93,384 87,798 Interest expense 24,083 23,357 70,600 70,149 Amortization of regulatory assets, net 6,632 2,749 12,151 8,061 ------- ------- ------- ------- Total Expenses 238,658 208,137 720,239 696,230 ------- ------- ------- ------- Income Before Income Taxes 64,954 57,212 210,957 206,858 Income Taxes 26,039 22,541 78,957 80,130 ------- ------- ------- ------- Net Income 38,915 34,671 132,000 126,728 Preferred Dividends 216 253 650 4,484 ------- ------- ------- ------- Earnings on Common Stock $ 38,699 $ 34,418 $131,350 $122,244 ======= ======= ======= =======
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 ------------- 1995 1994 ---- ---- --thousands-- Operating Activities - -------------------- Cash received from utility customers $926,906 $935,878 Other operating cash receipts 8,485 8,743 Cash paid for: Fuel and purchased power (183,970) (181,920) Purchased gas (103,174) (119,750) Operation and maintenance labor (64,952) (65,844) Nonlabor operating expenditures (102,661) (120,540) Interest (net of amounts capitalized) (69,357) (69,255) Income taxes (76,275) (72,104) Property, excise and payroll taxes (101,201) (93,354) -------- -------- Net cash provided by operating activities 233,801 221,854 -------- -------- Investing Activities - -------------------- Net cash used for property expenditures and other (61,173) (58,004) -------- -------- Financing Activities - -------------------- Dividends paid on common and preferred stock (100,100) (79,168) Retirement of long-term debt (9,177) (9,177) Capital contribution - 63,131 Issuance of long-term debt 108,910 - Funding of trust for debt retirement (110,000) - Retirement of short-term debt - (25,000) Retirement of preferred stock - (94,249) -------- -------- Net cash used for financing activities (110,367) (144,463) -------- -------- Net increase in cash and temporary cash investments 62,261 19,387 Cash and temporary cash investments at beginning of period 8,297 5,980 -------- -------- Cash and temporary cash investments at end of period $ 70,558 $ 25,367 ======== ========
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, 1995 1994 ------------- ------------ --thousands-- ASSETS - ------ Property - -------- Electric property $3,018,647 $2,961,563 Gas property 256,515 251,751 Steam and other property 38,430 38,571 Construction work in progress 52,550 68,549 --------- --------- 3,366,142 3,320,434 Less-- Accumulated depreciation and amortization (1,118,073) (1,043,779) --------- --------- Net property 2,248,069 2,276,655 --------- --------- Current Assets - -------------- Cash and temporary cash investments 70,558 8,297 Accounts receivable, less provision for uncollectible accounts 90,313 99,785 Inventories, at average cost 82,182 83,345 Taxes applicable to subsequent years 46,447 78,289 Prepayments and other 12,218 29,555 --------- --------- Total current assets 301,718 299,271 --------- --------- Other Assets - ------------ Income taxes recoverable through future revenues 237,178 249,330 Regulatory assets (Note 1) 156,480 168,844 Other assets 168,753 152,950 --------- --------- Total other assets 562,411 571,124 --------- --------- Total Assets $3,112,198 $3,147,050 ========= =========
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, 1995 1994 ------------- ------------ --thousands-- CAPITALIZATION AND LIABILITIES - ------------------------------ Capitalization - -------------- Common shareholder's equity-- Common stock $ 412 $ 412 Other paid-in capital 738,646 738,494 Earnings reinvested in the business 421,949 421,410 --------- --------- Total common shareholder's equity 1,161,007 1,160,316 Preferred stock 22,851 22,851 Long-term debt 998,875 1,003,736 --------- --------- Total capitalization 2,182,733 2,186,903 --------- --------- Current Liabilities - ------------------- Accounts payable 56,917 75,650 Current portion of first mortgage bonds 450 4,730 Accrued taxes 69,638 123,491 Accrued interest 20,619 20,713 Gas costs refundable 23,856 5,635 Dividends payable 33,150 - Other 11,413 26,055 --------- --------- Total current liabilities 216,043 256,274 --------- --------- Deferred Credits and Other - -------------------------- Deferred taxes 524,383 530,630 Unamortized investment tax credit 80,201 81,212 Other 108,838 92,031 --------- --------- Total deferred credits and other 713,422 703,873 --------- --------- Total Capitalization and Liabilities $3,112,198 $3,147,050 ========= =========
See Notes to Consolidated Financial Statements. These interim statements are unaudited. -4- Notes to Consolidated Financial Statements 1. Regulatory assets on the balance sheet consist of:
September 30, December 31, 1995 1994 ------------- ------------ --millions-- Phase-in $ 64.5 $ 75.9 Demand-side management 33.2 31.9 Deferred interest 58.8 61.0 ------- ------- Total $ 156.5 $ 168.8 ======= =======
2. Statement of Cash Flow Reconciliation of Net Income to Net Cash Provided by Operating Activities:
Nine Months Ended September 30 1995 1994 ---- ---- --millions-- --millions-- Net Income $ 132.0 $ 126.7 Adjustments for non-cash items: Depreciation and amortization 86.7 83.5 Deferred income taxes (0.8) (1.5) Taxes applicable to subsequent years 86.3 81.2 Amortization of regulatory assets, net 12.2 8.1 Changes in Working Capital: Accounts receivable 9.5 56.5 Accounts payable (14.5) (64.4) Other (78.4) (50.3) Other operating activities 0.8 (17.9) ------ ------ Net cash provided by operating activities $ 233.8 $ 221.9 ====== ======
3. In September 1995, $110 million of Ohio Air Quality Development Revenue Refunding Bonds, with an interest rate of 6.10%, due 2030, were issued. Proceeds of the financing were placed in an irrevocable trust to be used on December 1, 1995 to redeem a similar principal amount of First Mortgage Bonds that secure a series of Pollution Control Bonds with an interest rate of 9.5%. -5- 4. Reclassifications have been made in certain prior years' amounts to conform to the current reporting presentation of the Company. 5. 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 1994 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. -6-
OPERATING STATISTICS The Dayton Power and Light Company Three Months Nine Months Ended Ended September 30 September 30 ------------- ------------- 1995 1994 1995 1994 ---- ---- ---- ---- Electric - -------- Sales (millions of kWh)-- Residential 1,365 1,093 3,636 3,489 Commercial 927 835 2,468 2,311 Industrial 1,196 1,134 3,459 3,275 Other 1,021 620 3,070 1,781 ------- ------- ------- ------- Total 4,509 3,682 12,633 10,856 Revenues (thousands of dollars)-- Residential 121,821 99,754 316,802 302,531 Commercial 61,607 56,779 170,374 163,016 Industrial 59,457 58,058 175,031 170,689 Other 34,327 25,665 101,159 76,190 ------- ------- ------- ------- Operating Revenues 277,212 240,256 763,366 712,426 Non-Operating Revenues 2,463 2,478 7,228 6,916 ------- ------- ------- ------- Total 279,675 242,734 770,594 719,342 Other Electric Statistics-- Average price per kWh--retail and wholesale customers (cents) 6.15 6.52 6.04 6.56 Fuel cost per net kWh generated (cents) 1.36 1.36 1.34 1.41 Electric customers at end of period 473,468 467,872 473,468 467,872 Average kWh use per residential customer 3,229 2,613 8,611 8,351 Peak demand-maximum one hour use (mw), (net) 2,961 2,758 2,961 2,824
-7-
OPERATING STATISTICS (continued) The Dayton Power and Light Company Three Months Nine Months Ended Ended September 30 September 30 ------------ ------------ 1995 1994 1995 1994 ---- ---- ---- ---- Gas - --- Sales (millions of mcf)-- Residential 1,981 1,756 18,369 20,006 Commercial 715 674 5,260 5,910 Industrial 140 196 1,788 2,431 Other 323 307 2,065 2,093 Transportation gas delivered 2,763 2,754 11,737 11,216 ------- ------- ------- ------- Total 5,922 5,687 39,219 41,656 Revenues (thousands of dollars)-- Residential 12,930 12,369 98,235 111,511 Commercial 3,658 3,783 25,932 30,646 Industrial 708 929 8,239 11,527 Other 3,295 3,361 16,014 16,056 ------- ------- ------- ------- Total 20,591 20,442 148,420 169,740 Other Gas Statistics-- Average price mcf-retail customers (dollars) 5.88 6.32 5.14 5.38 Gas customers at end of period 291,812 287,524 291,812 287,524 Degree Days (based on calendar month)-- Heating 108 92 3,546 3,886 Cooling 776 592 1,025 942
-8- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The Company's earnings increased $4.3 million and $9.1 million, respectively, for the quarter and nine months ended September 30, 1995, as compared to the same periods last year. Continued strong business activity, hot summer weather and efficient operations all combined to produce solid financial results in the third quarter. Electric sales to business customers were up 8% over the same period a year ago, and total retail sales were up 12%. DP&L customers also established a new all-time record for peak electricity usage of 2,961,000 kilowatts on August 14, 1995. These strong sales gains were partially offset by financing fees associated with a debt refinancing. An analysis of the financial condition and results of operation for the third quarter and nine months ended September 30, 1995 and 1994 is 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, 1995, the Company's cash and temporary cash investment balance was $70.6 million. The Company has available to it $97 million in short-term informal lines of credit. As of September 30, 1995, the Company had no short-term debt outstanding. DPL Inc. and its subsidiaries have $200 million available through a Revolving Credit Agreement. As of September 30, 1995, 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 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 1995-1999. -9- Results of Operations - --------------------- Electric revenues increased by $36.9 million and $51.3 million, respectively, for the third quarter and nine months ended September 30, 1995, over the corresponding periods in 1994. Residential sales increased 25% in the third quarter and 4% year-to-date over last year due to the hot summer weather. Sales to business customers increased 8% in the third quarter and 6% year-to-date over last year reflecting the continued strength of the West Central Ohio economy. For the nine month period, sales to other public utilities increased 164% over 1994. Fuel used in electric and steam production increased $13.7 million and $24.0 million, respectively, over the third quarter and year-to-date 1994, primarily related to increased electric sales. Gas revenues and gas purchased for resale decreased $21.3 million and $17.1 million, respectively, from year-to-date last year. The decreases reflect a lower gas cost recovery rate and a decline of 10% in retail gas sales due primarily to mild winter temperatures. Operation and maintenance expense increased $9.1 million and $3.8 million, respectively, over the third quarter and year-to-date last year. The increases are due primarily to financing fees of $4.7 million associated with a debt refinancing. General taxes increased $1.4 million and $5.6 million, respectively, for the third quarter and nine months ended September 30, 1995. Higher property tax rates applied to increased property investment and greater utility excise tax due to higher gross receipts caused the increase. Preferred stock dividends during the year-to-date period decreased $3.8 million from last year due to redemptions of several series of preferred stock in 1994. -10- Part II. Other Information --------------------------- Item 5. Other Information. Rate Regulation and Government Legislation - ------------------------------------------ On May 31, 1995 and June 1, 1995, respectively, the Company filed its electric and natural gas Long-Term Forecast Reports ("LTFR") with the PUCO. An Integrated Resource Plan filed as part of the electric LTFR included plans for the construction of a series of 75 MW combustion turbine generating units. The first unit became operational on June 1, 1995. The electric LTFR was approved by the PUCO on October 5, 1995. Environmental Considerations - ---------------------------- Air Quality - ----------- As required by State of Ohio regulation, in April 1995, the PUCO initiated proceedings to conduct a review of the Company's Environmental Compliance Plan ("ECP"). The Company submitted the ECP update report and data to the PUCO on July 14, 1995. A Stipulation and Recommendation recommending re-approval of the Company's ECP was entered into between the Company, the Office of Consumers' Counsel and PUCO staff. A hearing on the review of the Company's ECP was held and the ECP was approved by the PUCO on November 9, 1995. 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 DPL Inc. during the quarter ended September 30, 1995. -11- 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 14, 1995 /s/ Stephen F. Koziar ----------------- --------------------- Stephen F. Koziar Group Vice President and Secretary Date November 14, 1995 /s/ Thomas M. Jenkins ----------------- --------------------- Thomas M. Jenkins Group Vice President (Principal Financial Officer) -12- EX-27 2 FINANCIAL DATA SCHEDULE
UT 1,000 9-MOS DEC-31-1995 SEP-30-1995 PER-BOOK 2248069 0 301718 393658 168753 3112198 412 738646 421949 1161007 0 22851 998875 0 0 0 450 0 0 0 929015 3112198 923389 78957 649639 728596 194793 7807 202600 70600 132000 650 131350 99450 69357 233801 3.19 3.19
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