-----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, Imv1EgbRjHlqMGvNE6D3MfyVCOqK5QVaS/vI6tM7NoxdzMhtYLP/zMxxpMNBh/kZ AhRZu/VKvf+ibnI2PSmMJg== 0000027430-96-000004.txt : 19960816 0000027430-96-000004.hdr.sgml : 19960816 ACCESSION NUMBER: 0000027430-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 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: 96613749 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 June 30, 1996 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 June 30, 1996) 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 Six Months Ended Ended June 30 June 30 ------------ ------------- 1996 1995 1996 1995 ---- ---- ---- ---- --thousands-- --thousands-- Income - ------ Utility service revenues-- Electric $245,563 $234,844 $510,187 $490,919 Gas and Other 36,468 31,704 140,848 131,797 -------- -------- -------- -------- Total utility service revenues 282,031 266,548 651,035 622,716 Interest and other income 4,205 3,323 6,033 4,868 -------- -------- -------- -------- Total Income 286,236 269,871 657,068 627,584 -------- -------- -------- -------- Expenses - -------- Fuel and purchased power 54,615 59,554 116,239 123,701 Gas purchased for resale 19,461 17,614 84,020 80,633 Operation and maintenance 69,332 55,750 124,988 106,901 Depreciation and amortization 31,218 28,154 60,449 56,213 Amortization of regulatory assets, net 3,402 2,794 7,461 5,519 General taxes 31,903 30,915 64,059 62,096 Interest expense 22,125 23,297 44,168 46,517 -------- -------- -------- -------- Total Expenses 232,056 218,078 501,384 481,580 -------- -------- -------- -------- Income Before Income Taxes 54,180 51,793 155,684 146,004 Income Taxes 21,113 18,032 59,866 52,919 -------- -------- -------- -------- Net Income 33,067 33,761 95,818 93,085 Preferred Dividends 217 217 434 434 -------- -------- -------- -------- Earnings on Common Stock $ 32,850 $ 33,544 $ 95,384 $ 92,651 ======== ======== ======== ======== Set Notes to Consolidated Financial Statements. These interim statements are unaudited. -1- CONSOLIDATED STATEMENT OF CASH FLOWS The Dayton Power and Light Company Six Months Ended June 30 ---------------- 1996 1995 ---- ---- --thousands-- Operating Activities - -------------------- Cash received from utility customers $654,398 $642,794 Other operating cash receipts 5,029 5,655 Cash paid for: Fuel and purchased power (108,065) (120,023) Purchased gas (95,027) (74,315) Operation and maintenance labor (43,067) (44,678) Nonlabor operating expenditures (90,022) (76,287) Interest (43,514) (43,125) Income taxes (35,754) (38,304) Property, excise and payroll taxes (72,065) (71,362) -------- -------- Net cash provided by operating activities 171,913 180,355 -------- -------- Investing Activities - -------------------- Property expenditures (41,503) (42,708) Other activities (86,007) - -------- -------- Net cash used for investing activities (127,510) (42,708) -------- -------- Financing Activities - -------------------- Dividends paid on common stock (69,400) (66,733) Dividends paid on preferred stock (433) - Retirement of long-term debt (50) (3,145) Retirement of short-term debt (3,500) - -------- -------- Net cash used for financing activities (73,383) (69,878) -------- -------- Cash and temporary cash investments-- - ----------------------------------- Net change (28,980) 67,769 Balance at beginning of period 39,110 8,297 -------- -------- Balance at end of period $ 10,130 $ 76,066 ======== ======== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -2- CONSOLIDATED BALANCE SHEET The Dayton Power and Light Company At At June 30, December 31, 1996 1995 -------- ----------- --thousands-- ASSETS - ------ Property - -------- Electric property $3,066,009 $3,064,579 Gas and other utility property 288,681 289,286 Construction work in progress 65,159 22,926 ---------- ---------- 3,419,849 3,376,791 Less-- Accumulated depreciation and amortization (1,188,820) (1,134,632) ---------- ---------- Net property 2,231,029 2,242,159 ---------- ---------- Current Assets - -------------- Cash and temporary cash investments 10,130 39,110 Accounts receivable, less provision for uncollectible accounts 137,071 144,510 Inventories, at average cost 63,207 81,628 Taxes applicable to subsequent years 77,086 82,371 Other current assets 33,875 45,752 ---------- ---------- Total current assets 321,369 393,371 ---------- ---------- Other Assets - ------------ Income taxes recoverable through future revenues 232,675 238,632 Regulatory assets 147,195 155,715 Financial assets 64,332 3,765 Other assets 173,182 170,658 ---------- ---------- Total other assets 617,384 568,770 ---------- ---------- Total Assets $3,169,782 $3,204,300 ========== ========== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -3- CONSOLIDATED BALANCE SHEET (continued) The Dayton Power and Light Company At At June 30, December 31, 1996 1995 -------- ------------ --thousands-- CAPITALIZATION AND LIABILITIES - ------------------------------ Capitalization - -------------- Common shareholder's equity-- Common stock $ 412 $ 412 Other paid-in capital 738,786 738,693 Earnings reinvested in the business 442,455 451,350 ---------- ---------- Total common shareholder's equity 1,181,653 1,190,455 Preferred stock 22,851 22,851 Long-term debt 951,632 991,591 ---------- ---------- Total capitalization 2,156,136 2,204,897 ---------- ---------- Current Liabilities - ------------------- Accounts payable 77,597 96,958 Accrued taxes 109,186 115,886 Accrued interest 21,620 21,680 Current portion of long-term debt 40,400 450 Other 52,879 47,267 ---------- ---------- Total current liabilities 301,682 282,241 ---------- ---------- Deferred Credits and Other - -------------------------- Deferred taxes 524,432 532,144 Unamortized investment tax credit 76,695 79,424 Other 110,837 105,594 ---------- ---------- Total deferred credits and other 711,964 717,162 ---------- ---------- Total Capitalization and Liabilities $3,169,782 $3,204,300 ========== ========== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -4- Notes to Consolidated Financial Statements 1. Reconciliation of Net Income to Net Cash Provided by Operating Activities: Six Months Ended June 30 1996 1995 ---- ---- --millions-- Net Income $ 95.8 $ 93.1 Adjustments for non-cash items: Depreciation and amortization 60.4 56.2 Changes in working capital: Accounts receivable 7.4 26.1 Accounts payable (27.6) (22.7) Other 25.1 34.7 Other operating activities 10.8 (7.0) ------ ------ Net cash provided by operating activities $171.9 $180.4 ====== ====== 2. Reclassifications have been made in certain prior years' amounts to conform to the current reporting presentation of the Company. 3. 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 1995 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 Six Months Ended Ended June 30 June 30 ------------- ------------- 1996 1995 1996 1995 ---- ---- ---- ---- Electric - -------- Sales (millions of kWh)-- Residential 1,032 924 2,530 2,271 Commercial* 881 769 1,713 1,541 Industrial* 1,122 1,168 2,185 2,264 Other 750 1,028 1,696 2,048 ------- ------- ------- ------- Total 3,785 3,889 8,124 8,124 Revenues (thousands of dollars)-- Residential 94,967 84,672 214,317 194,981 Commercial* 3,052 54,930 119,865 108,767 Industrial* 5,501 59,530 108,929 115,575 Other 32,043 35,712 67,076 71,596 ------- ------- ------- ------- Total 245,563 234,844 510,187 490,919 Other Electric Statistics-- Average price per kWh--retail and wholesale customers (cents) 6.41 5.97 6.21 5.98 Fuel cost per net kWh generated (cents) 1.24 1.31 1.26 1.33 Electric customers at end of period 476,822 472,394 476,822 472,394 Average kWh use per residential customer 2,420 2,188 5,938 5,381 Peak demand-maximum one hour use (mw), (net) 2,641 2,704 2,668 2,704 * Includes the effect of reclassifying certain industrial customers as commercial customers in the fourth quarter of 1995. -6- OPERATING STATISTICS (continued) The Dayton Power and Light Company Three Months Six Months Ended Ended June 30 June 30 ------------- ------------- 1996 1995 1996 1995 Gas ---- ---- ---- ---- - --- Sales (millions of mcf)-- Residential 4,284 3,617 18,997 16,388 Commercial 1,242 999 5,689 4,544 Industrial 739 423 2,585 1,648 Other 410 546 1,718 1,742 Transportation gas delivered 3,623 3,521 9,274 8,974 ------- ------- ------- ------- Total 10,298 9,106 38,263 33,296 Revenues (thousands of dollars)-- Residential 22,793 19,833 89,703 85,305 Commercial 5,964 4,930 25,092 22,274 Industrial 2,951 1,692 10,210 7,531 Other 4,108 4,186 13,326 12,718 ------- ------- ------- ------- Total 35,816 30,641 138,331 127,828 Other Gas Statistics-- Average price mcf-retail customers (dollars) 5.00 5.10 4.55 5.05 Gas customers at end of period 295,351 291,326 295,351 291,326 Degree Days (based on calendar month)-- Heating 723 607 3,920 3,438 Cooling 282 249 282 249 -7- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The Company's earnings on common stock for the second quarter of 1996 were slightly less than a year ago. Year-to-date earnings on common stock increased by $2.7 million from the same period in 1995. The West Central Ohio economy remained very strong in the second quarter with unemployment levels in the service area dropping below 4%, outpacing both the state and national economies. This performance, combined with more seasonal weather than last year, led to an increase in retail electric and total natural gas sales of 5% and 15%, respectively, over year-to-date 1995 levels. An analysis of the financial condition and results of operations for the second quarter and six months ended June 30, 1996 and 1995 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 June 30, 1996, the Company's cash and temporary cash investment balance was $10.1 million. In addition, $90.0 million was invested in debt and equity financial assets. The Company has available to it $97 million in short-term informal lines of credit. As of June 30, 1996, the Company had no short-term debt outstanding. DPL Inc. and its subsidiaries have $200 million available through a Revolving Credit Agreement ("Credit Agreement"). As of June 30, 1996, 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 1996-2000. -8- Results of Operations - --------------------- Electric revenues increased by $10.7 million and $19.3 million, respectively, for the second quarter and six months ended June 30, 1996, over the corresponding periods in 1995. Residential customer revenues were up 12% for the second quarter and 10% year-to-date as a result of weather-related sales. Gas revenues increased $5.2 million and $10.5 million, respectively, from the second quarter and year-to-date last year. The variance reflects increased gas sales of 13% in the second quarter and 15% year-to-date over last year due to colder weather and increased business activity. Fuel and purchased power expense decreased $4.9 million and $7.5 million, respectively, for the second quarter and year-to-date. The variance is a result of lower sales to other utilities as well as a lower fuel cost recovery rate. Gas purchased for resale increased $1.8 million from the corresponding quarter in 1995 and $3.4 million from year-to-date last year primarily as a result of the increased sales. Operation and maintenance expense increased over last year by $13.6 million for the quarter and $18.1 million year-to-date due to higher insurance and claims expenses and planned maintenance measures undertaken in the second quarter in preparation for the upcoming summer cooling season. Depreciation and amortization expense increased $3.1 million from the previous year's second quarter and $4.2 million year-to-date. This variance reflects increased depreciable assets and a second quarter adjustment to the depreciation reserve. General taxes increased $2.0 million over the first six months of last year due to increased property taxes. Income taxes increased $3.1 million and $6.9 million, respectively, over the second quarter and year-to-date 1995 primarily due to higher pre-tax income. -9- Part II. Other Information --------------------------- Item 5. Other Information. Rate Regulation and Government Legislation - ------------------------------------------ On July 9, 1996, the Company refiled its open-access transmission tariff with the Federal Energy Regulatory Commission ("FERC") in compliance with Order Nos. 888 and 889 issued by FERC on April 24, 1996. On February 15, 1996, the PUCO issued guidelines for interruptible service, including services that accommodate the attainment and delivery of replacement electricity during periods when the utility faces constraints on its own resources. On April 11, 1996, the PUCO issued an Entry on Rehearing ordering utilities to file interruptible electric service tariffs. On June 14, 1996, the Company filed for approval of a non-firm electric service rate schedule and replacement power rate riders. 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 June 30, 1996. -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: August 14, 1996 /s/ Paul R. Anderson --------------- -------------------- Paul R. Anderson Controller (Principal Accounting Officer) Date: August 14, 1996 /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 6-MOS DEC-31-1996 JUN-30-1996 PER-BOOK 2231029 0 321369 379870 237514 3169782 412 738786 442455 1181653 0 22851 951632 0 0 0 40400 0 0 0 973246 3169782 651035 59866 457216 517082 133953 6033 139986 44168 95818 434 95384 69400 43514 171913 2.33 2.33
-----END PRIVACY-ENHANCED MESSAGE-----