-----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, RW49VKUTAeLx93x8s5ylB4iHQptjTy7sBU7w614lEnXRShZBpM2TPABAq2cQslQ6 G1bolR+Wv2IpYjlIuK3MrA== 0000914039-94-000076.txt : 19941010 0000914039-94-000076.hdr.sgml : 19941010 ACCESSION NUMBER: 0000914039-94-000076 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19941007 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONNECTICUT WATER SERVICE INC / CT CENTRAL INDEX KEY: 0000276209 STANDARD INDUSTRIAL CLASSIFICATION: 4941 IRS NUMBER: 060739839 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-08084 FILM NUMBER: 94552081 BUSINESS ADDRESS: STREET 1: 93 W MAIN ST CITY: CLINTON STATE: CT ZIP: 06413 BUSINESS PHONE: 2036698636 MAIL ADDRESS: STREET 1: 93 WEST MAIN ST CITY: CLINTON STATE: CT ZIP: 06413 10-Q 1 10-Q 1 This document is refiled at this time due to a technical problem with the original filing, which was transmitted on time. SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 1994 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 0-8084 ------------------------------- Connecticut Water Service,Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Connecticut 06-0739839 - --------------------------------- ---------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 93 West Main Street, Clinton, CT 06413 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (203) 669-8636 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name, address and former fiscal year, if changed since last report) 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 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 -------- -------- APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a count. Yes No -------- -------- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 2,813,916 - -------------------------------------------------------------------------------- Number of shares of common stock outstanding, June 30, 1994 2 CONNECTICUT WATER SERVICE, INC. Financial Report June 30, 1994 and 1993 TABLE OF CONTENTS PART I, ITEM 1: Financial Statements Consolidated Balance Sheets at June 30, 1994 Page 3 and December 31, 1993 Page 3a Consolidated Statements of Capitalization at June 30, 1994 and December 31, 1993 Page 4 Consolidated Statements of Income for Three Months Ended June 30, 1994 and 1993 Page 5 Schedules of Operating Revenues, Taxes Other Than Income and Other Income for Three Months Ended June 30, 1994 and 1993 Page 6 Consolidated Statements of Income for Six Months Ended June 30, 1994 and 1993 Page 7 Schedules of Operating Revenues, Taxes Other Than Income and Other Income for Six Months Ended June 30, 1994 and 1993 Page 8 Consolidated Statements of Income for Twelve Months Ended June 30, 1994 and 1993 and for Twelve Months Ended March 31, 1994 Page 9 Schedules of Operating Revenues, Taxes Other Than Income and Other Income for Twelve Months Ended June 30, 1994 and 1993 and for Twelve Months Ended March 31, 1994 Page 10 Consolidated Statements of Retained Earnings for Three Months Ended June 30, 1994 and 1993 Page 11 Consolidated Statements of Retained Earnings for Six Months Ended June 30, 1994 and 1993 Page 11 Consolidated Statements of Retained Earnings for Twelve Months Ended June 30, 1994 and 1993 Page 11 Consolidated Statements of Cash Flows for Six Months Ended June 30, 1994 and 1993 Page 12 Notes to Consolidated Financial Statements Page 13 PART I, ITEM 2: Management's Discussion and Analysis of Financial Condition and Results of Operations Page 14-15 Signature Page Page 16
3 Page 3 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS AT JUNE 30, 1994 AND DECEMBER 31, 1993
JUNE 30, 1994 DEC. 31, (UNAUDITED) 1993 ----------- --------- ASSETS (THOUSANDS OF DOLLARS) Utility Plant Utility Plant........................................................ $176,754 $176,308 Construction Work in Progress.................................... 2,842 2,596 Utility Plant Acquisition Adjustments............................ (1,206) (1,206) -------- -------- 178,390 177,698 Accumulated Provision for Depreciation........................... (41,045) (40,130) -------- -------- Net Utility Plant.................................................. 137,345 137,568 -------- -------- Investments Unconsolidated Subsidiary at Underlying Equity................... 36 35 Other................................................................ 712 727 -------- -------- Total Investments.................................................. 748 762 -------- -------- Current Assets Cash................................................................. 355 44 Accounts Receivable (Less Allowance, 1994 - $231; 1993 - $166)....... 3,441 3,423 Accrued Unbilled Revenues........................................ 2,655 2,800 Materials and Supplies, at Average Cost.......................... 640 681 Prepayments and Other Current Assets............................. 336 255 -------- -------- Total Current Assets........................................... 7,427 7,203 -------- -------- Deferred Charges Unamortized Debt Issuance Expense................................... 5,678 5,111 Receivables from Customers for Unrecovered Future Income Taxes...... 10,000 10,000 Receivables from Customers for Unrecovered SFAS 106 Postretireme Medical and Dental Benefits.................................. 800 640 Reynolds Bridge Well Field Contamination Clean Up Costs......... 1,136 912 Prepaid Income Taxes on Contributions in Aid of Construction.... 487 439 Other Costs......................................................... 661 445 -------- -------- Total Deferred Charges............................................ 18,762 17,547 -------- -------- Total Assets..................................................... $164,282 $163,080 ======== ========
The accompanying notes are an integral part of these financial statements. 4 Page 3a CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS AT JUNE 30, 1994 AND DECEMBER 31, 1993
JUNE 30, 1994 DEC. 31, (UNAUDITED) 1993 ----------- -------- CAPITALIZATION AND LIABILITIES (THOUSANDS OF DOLLARS) Capitalization (See accompanying statements) Common Stockholders' Equity................................................. $45,347 $45,160 Preferred Stock.............................................................. 772 772 Preferred Stock with Mandatory Redemption Provisions........................ 0 2,976 Long-Term Debt .............................................................. 54,600 51,600 -------- -------- Total Capitalization...................................................... 100,719 100,508 -------- -------- Current Liabilities Interim Bank Loans Payable.................................................. 4,750 3,950 Current Portion of Long-Term Debt........................................... 0 0 Current Portion of Preferred Stock.......................................... 30 30 Accounts Payable............................................................ 2,204 2,574 Accrued Taxes................................................................ 1,178 1,466 Accrued Interest............................................................. 1,170 1,196 Other........................................................................ 1,273 1,263 -------- -------- Total Current Liabilities................................................. 10,605 10,479 -------- -------- Advances for Construction..................................................... 11,803 11,584 -------- -------- Contributions in Aid of Construction.......................................... 18,133 18,128 -------- -------- Deferred Federal Income Taxes................................................. 9,918 9,408 -------- -------- Unfunded Future Income Taxes.................................................. 10,000 10,000 -------- -------- Unfunded SFAS 106 Postretirement Medical and Dental Benefits.................. 800 640 -------- -------- Unamortized Investment Tax Credits............................................ 2,304 2,333 -------- -------- Total Capitalization and Liabilities.................................... $164,282 $163,080 ======== ========
The accompanying notes are an integral part of these financial statements. 5 Page 4 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CAPITALIZATION AT JUNE 30, 1994 AND DECEMBER 31, 1993
JUNE 30, 1994 DEC. 31, (UNAUDITED) 1993 ----------- -------- (THOUSANDS OF DOLLARS) Common Stockholders' Equity Common Stock Without Par Value Authorized - 7,500,000 Shares; Shares Issued and Outstanding: 1994 - 2,813,916; 1993 - 2,789,977................... $38,781 $38,218 Stock Issuance Expense.............................................................. (1,150) (1,150) Retained Earnings................................................................... 7,716 8,092 -------- -------- Total Common Stockholders' Equity............................................... 45,347 45,160 -------- -------- Cumulative Preferred Stock of Connecticut Water Service, Inc. Series A Voting, $20 Par Value; Authorized, Issued and Outstanding 15,000 Shares, Redeemable at $21.00 Per Share......................... 300 300 Series $.90 Non-Voting, $16 Par Value; Authorized 50,000 Shares Issued and Outstanding 29,499 Shares, Redeemable at $16.00 Per Share.............. 472 472 -------- -------- Total Preferred Stock of Connecticut Water Service, Inc........................ 772 772 -------- -------- Cumulative Preferred Stock of The Connecticut Water Company, with Mandatory Redemption Provisions, Voting, $100 Par Value; Authorized 50,000 Shares, Issued and Outstanding: SHARES -------------- SERIES 1994 1993 ------ ----- ------ 4 3/4% 300 600 30 60 9 1/2% 0 30,000 0 3,000 Stock Issuance Expense.............................................................. 0 (54) -------- -------- 30 3,006 Less Current Portion of Preferred Stock............................................ 30 30 -------- -------- Total Preferred Stock of The Connecticut Water Company.......................... 0 2,976 -------- -------- Long-Term Debt The Connecticut Water Company First Mortgage Bonds 9 3/8% Series L, due 1997........................................................ 0 1,800 8 1/2% Series O, due 1999........................................................ 0 2,250 10% Series P, due 2004........................................................ 0 5,000 6.9% Series Q, due 2021........................................................ 10,000 10,000 5 7/8% Series R, due 2022........................................................ 15,000 15,000 6.65% Series S, due 2020........................................................ 8,000 8,000 5 3/4% Series T, due 2028........................................................ 5,000 5,000 5.3% Series U, due 2028........................................................ 4,550 4,550 6.94% Series V, due 2029........................................................ 12,050 0 -------- -------- 54,600 51,600 Less Current Portion of Long-Term Debt.............................................. 0 0 -------- -------- Total Long-Term Debt............................................................ 54,600 51,600 -------- -------- Total Capitalization.......................................................... $100,719 $100,508 ======== ========
The accompanying notes are an integral part of these financial statements. 6 Page 5 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 1994 AND 1993
1994 1993 INCREASE (UNAUDITED) (UNAUDITED) (DECREASE) ----------- ----------- ---------- (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Operating Revenues (See accompanying schedule).................... $9,201 $9,099 $102 ------ ------ ----- Operating Expenses Operation....................................................... 3,436 3,432 4 Maintenance..................................................... 457 378 79 Depreciation.................................................... 770 755 15 Federal Income Taxes............................................ 831 771 60 Connecticut Corporation Business Taxes.......................... 230 210 20 Taxes Other Than Income Taxes (See accompanying schedule)................................... 1,469 1,399 70 ------ ------ ----- Total Operating Expenses................................... 7,193 6,945 248 ------ ------ ----- Utility Operating Income.......................................... 2,008 2,154 (146) ------ ------ ----- Other Income (Deductions) Interest........................................................ 24 27 (3) Allowance for Funds Used During Construction.................... 10 15 (5) Preferred Stock Dividends of Subsidiary......................... 0 (74) 74 Other (See accompanying schedule)............................... 17 (9) 26 Taxes on Other Income........................................... 10 10 0 ------ ------ ----- Total Other Income (Deductions)............................ 61 (31) 92 ------ ------ ----- Interest and Debt Expense Interest on Long-Term Debt...................................... 887 982 (95) Other Interest Charges.......................................... 50 86 (36) Amortization of Debt Expense.................................... 46 51 (5) ------ ------ ----- Total Interest and Debt Expense............................ 983 1,119 (136) ------ ------ ----- Net Income........................................................ 1,086 1,004 82 Preferred Stock Dividend Requirement.............................. 9 9 0 ------ ------ ----- Net Income Applicable to Common Stockholders...................... $1,077 $995 $82 ====== ====== ===== Weighted Average Common Shares Outstanding........................ 2,805 2,765 40 ====== ====== ===== Earnings Per Average Common Share................................. $0.38 $0.36 $0.02 ====== ====== ===== Dividends Per Common Share........................................ $0.41 $0.41 $0.00 ====== ====== =====
The accompanying notes are an integral part of these financial statements. 7 Page 6 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY SCHEDULE OF OPERATING REVENUES, TAXES OTHER THAN INCOME AND OTHER INCOME FOR THE THREE MONTHS ENDED JUNE 30, 1994 AND 1993
1994 1993 INCREASE (UNAUDITED) (UNAUDITED) (DECREASE) ----------- ----------- ---------- (THOUSANDS OF DOLLARS) Operating Revenues: Residential................................................ $5,662 $5,635 $27 Seasonal................................................... 132 159 (27) Commercial................................................. 1,127 1,146 (19) Industrial................................................. 495 456 39 Public Authority........................................... 218 221 (3) Metered Sales - Temporary and Non-Recurring................ 7 7 0 Private Fire............................................... 213 211 2 Public Fire................................................ 1,292 1,282 10 CWIP Surcharge............................................. 0 0 0 Other..................................................... 35 31 4 -------- -------- --------- Revenues Billed............................................ 9,181 9,148 33 Change in Revenues Accrued................................. 20 (49) 69 -------- -------- --------- Total Operating Revenue............................... $9,201 $9,099 $102 ======== ======== ========= Taxes - Other Than Income Taxes Municipal Taxes............................................ $893 $826 $67 Payroll Taxes.............................................. 114 118 (4) Connecticut Gross Earnings Tax............................. 462 455 7 -------- -------- --------- Total Other Taxes..................................... $1,469 $1,399 $70 ======== ======== ========= Other Income Merchandising, Jobbing and Contracting - Net............... $5 $1 $4 Income from Lease of Other Physical Property - Net......... 6 4 2 Miscellaneous Non-Operating Income......................... 7 (16) 23 Miscellaneous Income Deductions............................ (1) 2 (3) -------- -------- --------- Total Other Income.................................... $17 ($9) $26 ======== ======== =========
The accompanying notes are an integral part of these financial statements. 8 Page 7 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND 1993
1994 1993 INCREASE (UNAUDITED) (UNAUDITED) (DECREASE) ----------- ----------- ---------- (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Operating Revenues (See accompanying schedule)....................... $18,065 $17,859 $206 ------- ------- ---- Operating Expenses Operation.......................................................... 6,553 6,616 (63) Maintenance........................................................ 887 751 136 Depreciation....................................................... 1,540 1,505 35 Federal Income Taxes............................................... 1,617 1,473 144 Connecticut Corporation Business Taxes............................. 441 412 29 Taxes Other Than Income Taxes (See accompanying schedule)...................................... 2,908 2,816 92 ------- ------- ---- Total Operating Expenses...................................... 13,946 13,573 373 ------- ------- ---- Utility Operating Income............................................. 4,119 4,286 (167) ------- ------- ---- Other Income (Deductions) Interest........................................................... 48 51 (3) Allowance for Funds Used During Construction....................... 11 36 (25) Preferred Stock Dividends of Subsidiary............................ (72) (147) 75 Other (See accompanying schedule).................................. 17 (8) 25 Taxes on Other Income.............................................. 19 12 7 ------- ------- ---- Total Other Income (Deductions)............................... 23 (56) 79 ------- ------- ---- Interest and Debt Expense Interest on Long-Term Debt......................................... 1,746 1,958 (212) Other Interest Charges............................................. 108 143 (35) Amortization of Debt Expense....................................... 93 103 (10) ------- ------- ---- Total Interest and Debt Expense............................... 1,947 2,204 (257) ------- ------- ---- Net Income........................................................... 2,195 2,026 169 Preferred Stock Dividend Requirement................................. 19 19 0 ------- ------- ---- Net Income Applicable to Common Stockholders......................... $2,176 $2,007 $169 ======= ======= ==== Weighted Average Common Shares Outstanding........................... 2,800 2,760 40 ======= ======= ==== Earnings Per Average Common Share.................................... $0.78 $0.73 $0.05 ======= ======= ==== Dividends Per Common Share........................................... $0.82 $0.82 $0.00 ======= ======= ====
The accompanying notes are an integral part of these financial statements. 9 Page 8 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY SCHEDULE OF OPERATING REVENUES, TAXES OTHER THAN INCOME AND OTHER INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND 1993
1994 1993 INCREASE (UNAUDITED) (UNAUDITED) (DECREASE) ----------- ----------- ---------- (THOUSANDS OF DOLLARS) Operating Revenues: Residential.................................................. $11,370 $11,185 $185 Seasonal..................................................... 264 320 (56) Commercial................................................... 2,179 2,210 (31) Industrial................................................... 919 870 49 Public Authority............................................. 408 402 6 Metered Sales - Temporary and Non-Recurring.................. 7 7 0 Private Fire................................................. 426 418 8 Public Fire.................................................. 2,585 2,560 25 CWIP Surcharge............................................... 0 0 0 Other........................................................ 52 45 7 ------- ------- ---- Revenues Billed.............................................. 18,210 18,017 193 Change in Revenues Accrued................................... (145) (158) 13 ------- ------- ---- Total Operating Revenue................................. $18,065 $17,859 $206 ======= ======= ==== Taxes - Other Than Income Taxes Municipal Taxes.............................................. $1,711 $1,654 $57 Payroll Taxes................................................ 291 269 22 Connecticut Gross Earnings Tax............................... 906 893 13 ------- ------- ---- Total Other Taxes....................................... $2,908 $2,816 $92 ======= ======= ==== Other Income Merchandising, Jobbing and Contracting - Net................. ($3) $4 ($7) Income from Lease of Other Physical Property - Net........... 12 9 3 Miscellaneous Non-Operating Income........................... 11 (21) 32 Miscellaneous Income Deductions.............................. (3) 0 (3) ------- ------- ---- Total Other Income...................................... $17 ($8) $25 ======= ======= ====
The accompanying notes are an integral part of these financial statements. 10 Page 9 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED JUNE 30, 1994 AND 1993 AND FOR THE TWELVE MONTHS ENDED MARCH 31, 1994
JUNE 30, MARCH 31, 1994 1993 INCREASE 1994 INCREASE (UNAUDITED) (UNAUDITED) (DECREASE) (UNAUDITED) (DECREASE) ----------- ----------- ---------- ----------- ---------- (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Operating Revenues (See accompanying schedule). $38,337 $37,147 $1,190 $38,235 $102 ------- ------- ------ ------- ----- Operating Expenses Operation.................................... 12,801 13,149 (348) 12,797 4 Maintenance.................................. 1,929 1,425 504 1,850 79 Depreciation................................. 3,072 2,950 122 3,057 15 Federal Income Taxes......................... 3,854 3,055 799 3,794 60 Connecticut Corporation Business Taxes....... 992 795 197 972 20 Taxes Other Than Income Taxes (See accompanying schedule)................ 5,873 5,722 151 5,803 70 ------- ------- ------ ------- ----- Total Operating Expenses................ 28,521 27,096 1,425 28,273 248 ------- ------- ------ ------- ----- Utility Operating Income....................... 9,816 10,051 (235) 9,962 (146) ------- ------- ------ ------- ----- Other Income (Deductions) Interest..................................... 102 103 (1) 105 (3) Allowance for Funds Used During Construction. 46 136 (90) 51 (5) Preferred Stock Dividends of Subsidiary...... (215) (292) 77 (289) 74 Other (See accompanying schedule)............ (4) (6) 2 (30) 26 Taxes on Other Income........................ 72 13 59 72 0 ------- ------- ------ ------- ----- Total Other Income (Deductions)......... 1 (46) 47 (91) 92 ------- ------- ------ ------- ----- Interest and Debt Expense Interest on Long-Term Debt................... 3,643 4,080 (437) 3,738 (95) Other Interest Charges....................... 238 292 (54) 274 (36) Amortization of Debt Expense................. 200 201 (1) 205 (5) ------- ------- ------ ------- ----- Total Interest and Debt Expense......... 4,081 4,573 (492) 4,217 (136) ------- ------- ------ ------- ----- Net Income..................................... 5,736 5,432 304 5,654 82 Preferred Stock Dividend Requirement........... 38 38 0 38 0 ------- ------- ------ ------- ----- Net Income Applicable to Common Stockholders... $5,698 $5,394 $304 $5,616 $82 ======= ======= ====== ======= ===== Weighted Average Common Shares Outstanding..... 2,789 2,749 40 2,779 10 ======= ======= ====== ======= ===== Earnings Per Average Common Share.............. $2.04 $1.96 $0.08 $2.02 $0.02 ======= ======= ====== ======= ===== Dividends Per Common Share..................... $1.64 $1.63 $0.01 $1.64 $0.00 ======= ======= ====== ======= =====
The accompanying notes are an integral part of these financial statements. 11 Page 10 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY SCHEDULE OF OPERATING REVENUES, TAXES OTHER THAN INCOME AND OTHER INCOME FOR THE TWELVE MONTHS ENDED JUNE 30, 1994 AND 1993 AND FOR THE TWELVE MONTHS ENDED MARCH 31, 1994
MARCH 31, 1994 1993 INCREASE 1994 INCREASE (UNAUDITED) (UNAUDITED) (DECREASE) (UNAUDITED) (DECREASE) ----------- ----------- ---------- ----------- ---------- (THOUSANDS OF DOLLARS) Operating Revenues: Residential........................................... $24,231 $23,241 $990 $24,204 $27 Seasonal.............................................. 504 534 (30) 531 (27) Commercial............................................ 4,721 4,736 (15) 4,740 (19) Industrial............................................ 1,900 1,931 (31) 1,861 39 Public Authority...................................... 911 862 49 914 (3) Metered Sales - Temporary and Non-Recurring........... 25 23 2 25 0 Private Fire.......................................... 849 823 26 847 2 Public Fire........................................... 5,151 5,099 52 5,141 10 CWIP Surcharge........................................ 0 0 0 0 0 Other................................................. 73 73 0 69 4 ------- ------- ------ ------- ---- Revenues Billed....................................... 38,365 37,322 1,043 38,332 33 Change in Revenues Accrued............................ (28) (175) 147 (97) 69 ------- ------- ------ ------- ---- Total Operating Revenue.......................... $38,337 $37,147 $1,190 $38,235 $102 ======= ======= ====== ======= ==== Taxes - Other Than Income Taxes Municipal Taxes....................................... $3,459 $3,390 $69 $3,392 $67 Payroll Taxes......................................... 495 474 21 499 (4) Connecticut Gross Earnings Tax........................ 1,919 1,858 61 1,912 7 ------- ------- ------ ------- ---- Total Other Taxes................................ $5,873 $5,722 $151 $5,803 $70 ======= ======= ====== ======= ==== Other Income Merchandising, Jobbing and Contracting - Net.......... $2 $6 ($4) ($2) $4 Income from Lease of Other Physical Property - Net.... 19 19 0 17 2 Miscellaneous Non-Operating Income.................... 32 (15) 47 9 23 Miscellaneous Income Deductions....................... (57) (16) (41) (54) (3) ------- ------- ------ ------- ---- Total Other Income............................... ($4) ($6) $2 ($30) $26 ======= ======= ====== ======= ====
The accompanying notes are an integral part of these financial statements. 12 Page 11 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF RETAINED EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 1994 AND 1993
1994 1993 (UNAUDITED) (UNAUDITED) ----------- ----------- (THOUSANDS OF DOLLARS) Balance at Beginning of Period................................................ $7,790 $6,985 Net Income.................................................................... 1,086 1,004 ------ ------ 8,876 7,989 ------ ------ Dividends Declared: Cumulative Preferred, Class A, $.20 per share............................ 3 3 Cumulative Preferred, Series $.90, $.225 per share....................... 6 6 Common Stock - 1994 $.41 per share; 1993 $.41 per share.................. 1,151 1,133 ------ ------ 1,160 1,142 ------ ------ Balance at End of Period...................................................... $7,716 $6,847 ====== ====== FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND 1993 Balance at Beginning of Period................................................ $8,092 $7,102 Net Income.................................................................... 2,195 2,026 ------ ------ 10,287 9,128 Charges Related to Redemption of Subsidiary's 9 1/2% Series Preferred Stock... 257 0 ------ ------ Dividends Declared: Cumulative Preferred, Class A, $.40 per share............................ 6 6 Cumulative Preferred, Series $.90, $.45 per share........................ 13 13 Common Stock - 1994 $.82 per share; 1993 $.82 per share.................. 2,295 2,262 ------ ------ 2,314 2,281 ------ ------ Balance at End of Period...................................................... $7,716 $6,847 ====== ====== FOR THE TWELVE MONTHS ENDED JUNE 30, 1994 AND 1993 Balance at Beginning of Period................................................ $6,847 $5,933 Net Income.................................................................... 5,736 5,432 ------ ------ 12,583 11,365 ------ ------ Charges Related to Redemption of Subsidiary's 9 1/2% Series Preferred Stock... 257 0 ------ ------ Dividends Declared: Cumulative Preferred, Class A, $.80 per share............................ 12 12 Cumulative Preferred, Series $.90, $.90 per share........................ 26 26 Common Stock - 1994 $1.64 per share; 1993 $1.63 per share................ 4,572 4,480 ------ ------ 4,610 4,518 ------ ------ Balance at End of Period...................................................... $7,716 $6,847 ====== ======
The accompanying notes are an integral part of these financial statements. 13 Page 12 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1994 AND 1993
1994 1993 (UNAUDITED) (UNAUDITED) ----------- ----------- (THOUSANDS OF DOLLARS) Operating Activities: Net Income Before Preferred Dividends of Parent................................... $2,195 $2,026 ------ ------ Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation (including $68 in 1994, $103 in 1993 charged to other accounts).... 1,610 1,608 Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable and Accrued Unbilled Revenues...... 127 529 (Increase) Decrease in Other Current Assets................................... (40) 177 (Increase) Decrease in Other Non-Current Items................................ (326) 154 Increase (Decrease) in Accounts Payable, Accrued Expenses and Other Current Liabilities...................................... (674) (773) Increase (Decrease) in Deferred Federal Income Taxes and Investment Tax Credits, Net................................................. 481 496 ------ ------ Total Adjustments......................................................... 1,178 2,191 ------ ------ Net Cash Provided by Operating Activities................................. 3,373 4,217 ------ ------ Investing Activities: Gross Additions to Utility Plant (including Allowance for Funds Used During Construction of $11 in 1994 and $36 in 1993)........................ (1,410) (2,282) ------ ------ Financing Activities: Proceeds from Interim Bank Loans.................................................. 4,750 5,000 Repayment of Interim Bank Loans................................................... (3,950) (4,983) Proceeds from Issuance of Long-Term Debt.......................................... 12,050 0 Reduction of Long-Term Debt Including Current Portion............................. (9,050) (150) Proceeds from Issuance of Common Stock............................................ 563 560 Retirement of Preferred Stock..................................................... (3,030) (70) Charges Related to Redemption of Subsidiary's 9 1/2% Series Preferred Stock....... (257) 0 Advances, Contributions and Funds From Others for Construction, Net............... 247 780 Costs Incurred to Issue Long-Term Debt, Preferred Stock, and Common Stock......... (661) (576) Cash Dividends Paid............................................................... (2,314) (2,281) ------ ------ Net Cash Provided by (Used in) Financing Activities....................... (1,652) (1,720) ------ ------ Net Increase (Decrease) in Cash..................................................... 311 215 Cash at Beginning of Year........................................................... 44 60 ------ ------ Cash at End of Year................................................................. $355 $275 ====== ====== Supplemental Disclosures of Cash Flow Information: Cash Paid During the Year for: Interest (Net of Amounts Capitalized)........................................... $1,887 $2,094 Income Taxes.................................................................... $1,880 $2,202
The accompanying notes are an integral part of these financial statements. 14 Page 13 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. The consolidated financial statements included herein have been prepared by CONNECTICUT WATER SERVICE, INC. (the Company), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for interim periods. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on 10-K. The results for interim periods are not necessarily indicative of results to be expected for the year since the consolidated earnings are subject to seasonal factors. 2. Earnings per average common share are calculated by dividing net income applicable to common stock by the average number of shares of common stock outstanding during the respective periods as detailed:
3 Months Ended 12 Months Ended ----------------------- ---------------------------------- 6/30/94 6/30/93 6/30/94 6/30/93 12/31/93 ------- ------- ------- ------- -------- Common Shares Outstanding: January 1, 1993 -- -- -- -- 2,751,331 July 1, 1993 & 1992 respectively -- -- 2,772,944 2,731,210 -- April 1, 1994 & 1993 respectively 2,803,401 2,763,302 -- -- -- Common Shares Issued: To PSP - July 12, 1992 -- -- -- 2,338 -- To DRIP - Sept. 15, 1992 -- -- -- 8,176 -- To DRIP - December 15, 1992 -- -- -- 9,607 -- To PSP - Feb. 2, 1993 -- -- -- 3,074 3,074 To DRIP - March 15, 1993 -- -- -- 8,451 8,451 To 401-K - March 30, 1993 -- -- -- 446 446 To DRIP - June 15,1993 -- 9,186 -- 9,186 9,186 To 401-K - June 30, 1993 -- 456 -- 456 456 To DRIP - Sept 15, 1993 -- -- 7,965 -- 7,965 To 401-K - Sept. 30, 1993 -- -- 421 -- 421 To DRIP - Dec. 15, 1993 -- -- 8,647 -- 8,647 To PSP - Jan. 21, 1994 -- -- 4,061 -- -- To DRIP - March 15, 1994 -- -- 8,798 -- -- To 401-K - March 30, 1994 -- -- 565 -- -- To DRIP - June 15, 1994 9,878 -- 9,878 -- -- To 401-K - June 30, 1994 637 -- 637 -- -- --------- --------- --------- --------- -------- Common Shares Outstanding: June 30, 1994 & 1993 respectively 2,813,916 2,772,944 2,813,916 2,772,944 ========= ========= ========= ========= December 31, 1993 2,789,977 ========= Weighted Average Common Shares Outstanding: Days outstanding basis 2,805,145 2,764,922 2,789,211 2,749,420 2,769,347 ========= ========= ========= ========= =========
DRIP = Dividend Reinvestment Plan PSP = Performance Stock Program 401-K = Company contribution to employees' 401-K savings plan 15 Page 14 CONNECTICUT WATER SERVICE, INC. AND SUBSIDIARY PART I, ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION LIQUIDITY AND CORPORATE RESOURCES At June 30, 1994 the Company had $7,250,000 of unused lines of interim bank loan credit available. On January 4, 1994, the Subsidiary issued a $4,050,000, 6.94%, Series V, First Mortgage Bond, maturing January, 2029, the proceeds of which were used to redeem the 9 3/8%, Series L, and 8 1/2%, Series O, First Mortgage Bonds. An additional $8,000,000, 6.94%, Series V, First Mortgage Bond was issued on March 15, 1994. The 30,000 shares of $100 par, 9 1/2% Preferred Stock, with an outstanding balance of $3,000,000, was redeemed with a portion of the proceeds of this transaction. On May 1, 1994 the remaining $5,000,000 was used to redeem the 10%, Series P, First Mortgage Bond. In May, 1994 the Company's Board of Directors approved a $1,000,000 increase in capital expenditures in 1994 for improvements to the water distribution system. This increase will be funded primarily through increased interim bank borrowings. Capital spending for 1994 is now expected to total $5,750,000. RESULT OF OPERATIONS THE FOLLOWING FACTORS HAD A SIGNIFICANT EFFECT UPON THE COMPANY'S NET INCOME FOR THE THREE MONTHS ENDED JUNE 30, 1994 AS COMPARED WITH THE NET INCOME FOR THE SAME PERIOD LAST YEAR. Net income applicable to common stock for the three months ended June 30, 1994 increased from that of June 30, 1993 by $82,000, or $.02 per average common share, on an increased number of average common shares as a result of a $136,000 decrease in interest and debt expense and a $92,000 increase in other income and deductions, partially offset by a $146,000 decrease in operating income. The decrease in interest and debt expense reflects the reduction in the long-term debt interest cost achieved through the 1993 and 1994 long-term debt refinancings. The increase in other income and deductions is due primarily to a decrease of $74,000 in preferred dividends of Subsidiary resulting from the redemption of the 9.5% Preferred Stock. Operating revenues increased $102,000, or 1.1%, reflecting greater residential and industrial customer water consumption. The $248,000 increase in operating expenses is primarily attributable to increased income taxes related to higher taxable income, $80,000, increased maintenance expense primarily due to an increase in preventative maintenance programs, $79,000, increased depreciation expense, $15,000, an increase in taxes other than income taxes, $70,000, and a $4,000 increase in operation expenses. THE FOLLOWING FACTORS HAD A SIGNIFICANT EFFECT UPON THE COMPANY'S NET INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1994 AS COMPARED WITH THE NET INCOME FOR THE SAME PERIOD LAST YEAR. Net income applicable to common stock for the six months ended June 30, 1994 increased from that of June 30, 1993 by $169,000, or $.05 per average common share, on an increased number of average common shares as a result of a $206,000 increase in operating revenues, a $79,000 increase in other income and deductions, and a $257,000 decrease in interest and debt expense, partially offset by a $373,000 increase in operating expenses. 16 Page 15 Operating revenues increased $206,000, or 1.2%, reflecting higher water consumption from residential and industrial customers. The increase in other income and deductions is due primarily to a decrease of $75,000 in preferred dividends of Subsidiary resulting from the redemption of the 9.5% Preferred Stock. The decrease in interest and debt expense reflects the reduction in the long-term debt interest cost achieved through the 1993 and 1994 long-term debt refinancings. The $373,000 increase in operating expenses is primarily attributable to increased income taxes related to the higher taxable income, $173,000, increased maintenance expense primarily due to an increase in preventative maintenance programs, $136,000, increased depreciation expense, $35,000, and an increase in taxes other than income taxes, $92,000, partially offset by a $63,000 reduction in operation expenses due primarily to reductions in employee benefit costs. 17 Page 16 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. Connecticut Water Service, Inc. (Registrant) Date: August 10, 1994 By: s/s Bertram L. Lenz Bertram L. Lenz Vice President - Finance Date: August 10, 1994 By: s/s Peter J. Bancroft Peter J. Bancroft Assistant Treasurer -----END PRIVACY-ENHANCED MESSAGE-----