-----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, GkG4thyIovl5BoE3HjP+14KqpifuU4Wy6tP/gGDxQ3POjAfQ9LZLEBIAbMOK+uq+ BlTjAbdn81z1IJzvi+HB1Q== 0000910647-98-000028.txt : 19980217 0000910647-98-000028.hdr.sgml : 19980217 ACCESSION NUMBER: 0000910647-98-000028 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980212 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BERKSHIRE GAS CO /MA/ CENTRAL INDEX KEY: 0000317406 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 041731220 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-01857 FILM NUMBER: 98533441 BUSINESS ADDRESS: STREET 1: 115 CHESHIRE RD CITY: PITTSFIELD STATE: MA ZIP: 01201-1388 BUSINESS PHONE: 4134421511 10-Q 1 FORM 10-Q FOR THE 2ND QUARTER SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarter Ended December 31, 1997 Commission File No. 0-1857-3 THE BERKSHIRE GAS COMPANY Massachusetts 04-1731220 115 Cheshire Road, Pittsfield, Massachusetts 01201-1879 Registrant's telephone number, including Area Code 413:442-1511 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 [ ] At December 31, 1997, the Registrant had issued and outstanding 2,263,133 shares of Common Stock, par value $2.50. THE BERKSHIRE GAS COMPANY STATEMENTS OF INCOME AND RETAINED EARNINGS - Unaudited (In Thousands)
Three Months Ended --------------------- 12/31/97 12/31/96 -------- -------- Operating Revenues $ 14,177 $ 12,109 Cost of Gas Sold 7,077 5,650 --------------------- Operating Margin 7,100 6,459 --------------------- Other Operating Expenses 3,362 2,905 Depreciation 1,067 1,003 --------------------- Total 4,429 3,908 --------------------- Utility Operating Income 2,671 2,551 Other Income - Net 675 747 --------------------- Operating and Other Income 3,346 3,298 Interest Expense 1,157 1,034 Other Taxes 465 438 --------------------- Pre-Tax Income 1,724 1,826 Income Taxes 648 702 --------------------- NET INCOME 1,076 1,124 Retained Earnings at Beginning of Period 7,261 6,396 --------------------- Total 8,337 7,520 --------------------- Dividends Declared: Preferred Stock 4 88 Common Stock 645 609 --------------------- Total Dividends 649 697 --------------------- Retained Earnings at End of Period $ 7,688 $ 6,823 ===================== Earnings Available for Common Stock $ 1,072 $ 1,036 --------------------- Average Shares of Common Stock Outstanding 2,263.1 2,177.4 --------------------- Basic and Diluted Earnings Per Share of Common Stock $ 0.47 $ 0.48 =====================
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY STATEMENTS OF INCOME AND RETAINED EARNINGS - Unaudited (In Thousands)
Six Months Ended --------------------- 12/31/97 12/31/96 -------- -------- Operating Revenues $ 18,657 $ 16,226 Cost of Gas Sold 9,026 7,282 --------------------- Operating Margin 9,631 8,944 --------------------- Other Operating Expenses 6,021 5,635 Depreciation 1,432 1,339 --------------------- Total 7,453 6,974 --------------------- Utility Operating Income 2,178 1,970 Other Income - Net 1,099 1,163 --------------------- Operating and Other Income 3,277 3,133 Interest Expense 2,258 1,824 Other Taxes 669 626 --------------------- Pre-Tax Income 350 683 Income Taxes 110 267 --------------------- NET INCOME 240 416 Retained Earnings at Beginning of Period 8,739 7,883 --------------------- Total 8,979 8,299 --------------------- Dividends Declared: Preferred Stock 8 261 Common Stock 1,283 1,215 --------------------- Total Dividends 1,291 1,476 --------------------- Retained Earnings at End of Period $ 7,688 $ 6,823 ===================== Earnings Available for Common Stock $ 232 $ 155 --------------------- Average Shares of Common Stock Outstanding 2,243.1 2,169.0 --------------------- Basic and Diluted Earnings Per Share of Common Stock $ 0.10 $ 0.07 =====================
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY STATEMENTS OF INCOME AND RETAINED EARNINGS - Unaudited (In Thousands)
Twelve Months Ended --------------------- 12/31/97 12/31/96 -------- -------- Operating Revenues $ 50,893 $ 46,170 Cost of Gas Sold 24,954 20,480 --------------------- Operating Margin 25,939 25,690 --------------------- Other Operating Expenses 12,448 11,860 Depreciation 4,113 3,868 --------------------- Total 16,561 15,728 --------------------- Utility Operating Income 9,378 9,962 Other Income - Net 2,292 1,916 --------------------- Operating and Other Income 11,670 11,878 Interest Expense 4,413 3,516 Other Taxes 1,813 1,748 --------------------- Pre-Tax Income 5,444 6,614 Income Taxes 2,065 2,548 --------------------- NET INCOME 3,379 4,066 Retained Earnings at Beginning of Period 6,823 5,770 --------------------- Total 10,202 9,836 --------------------- Dividends Declared: Preferred Stock 16 607 Common Stock 2,498 2,406 --------------------- Total Dividends 2,514 3,013 --------------------- Retained Earnings at End of Period $ 7,688 $ 6,823 ===================== Earnings Available for Common Stock $ 3,363 $ 3,459 --------------------- Average Shares of Common Stock Outstanding 2,217.6 2,153.9 --------------------- Basic and Diluted Earnings Per Share of Common Stock $ 1.52 $ 1.61 =====================
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY BALANCE SHEETS (In Thousands)
December 31, June 30, 1997 1997 ------------ --------- (Unaudited) (Audited) ASSETS: Utility Plant: Utility Plant - at original cost $ 105,133 $ 101,983 Less: Accumulated Depreciation 29,158 28,343 ------------------------ Utility Plant - Net 75,975 73,640 ------------------------ Other Property: Other Property - at original cost 12,349 11,983 Less: Accumulated Depreciation 6,184 5,887 ------------------------ Other Property - Net 6,165 6,096 ------------------------ Current Assets: Cash 329 356 Accounts Receivable Utility Service (less allowance: Dec. 1997-$1,002; June 1997-$900) 7,425 6,386 Merchandise & Other (less allowance: Dec. 1997-$131; June 1997-$121) 905 869 Other Receivables 60 332 Inventories (at the lower of average cost or market): Natural Gas 2,914 1,844 Liquefied Petroleum 190 146 Materials and Supplies 1,546 1,675 Prepayments and Other 870 689 Prepaid Taxes 1,488 96 Recoverable Gas Costs 3,799 1,404 ------------------------ Total Current Assets 19,526 13,797 ------------------------ Deferred Debits: Unamortized Debt Expense 2,251 2,302 Capital Stock Expense 297 319 Environmental Cleanup Costs 875 819 Other 1,243 1,425 ------------------------ Total Deferred Debits 4,666 4,865 ------------------------ Recoverable Environmental Cleanup Costs 3,290 3,290 ------------------------ TOTAL ASSETS $ 109,622 $ 101,688 ========================
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY BALANCE SHEETS (In Thousands)
December 31, June 30, 1997 1997 ------------ --------- (Unaudited) (Audited) CAPITALIZATION AND LIABILITIES Common Shareholders' Equity: Common Stock $ 5,658 $ 5,529 Premium on Common Stock 17,796 17,097 Retained Earnings 7,688 8,739 ------------------------ Total Common Shareholders' Equity 31,142 31,365 ------------------------ Redeemable Cumulative Preferred Stock 321 363 ------------------------ Long-Term Debt 40,000 40,000 ------------------------ Current Liabilities: Notes Payable to Banks 14,300 6,480 Accounts Payable 3,382 3,513 Other Current Liabilities 4,080 4,621 ------------------------ Total Current Liabilities 21,762 14,614 ------------------------ Other Liabilities 1,686 1,561 ------------------------ Unamortized Investment Tax Credit 1,174 1,209 ------------------------ Deferred Income Taxes 10,247 9,286 ------------------------ Reserve for Recoverable Environmental Cleanup Costs 3,290 3,290 ------------------------ TOTAL CAPITALIZATION AND LIABILITIES $ 109,622 $ 101,688 ========================
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY STATEMENTS OF CASH FLOWS - Unaudited (In Thousands)
Six Months Ended --------------------- 12/31/97 12/31/96 -------- -------- Cash Flows from Operating Activities: Net Income $ 240 $ 416 Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities: Depreciation and Amortization 1,916 1,817 Provision for Losses on Accounts Receivable 369 351 Recoverable Gas Costs (2,395) (4,615) Deferred Income Taxes 961 1,797 Changes in Assets and Liabilities Which Provided (Used) Cash: Accounts Receivable (1,444) (2,074) Other Receivables 272 174 Inventories (985) (1,671) Accounts Payable (131) 1,551 Prepaid Taxes (1,392) (1,685) Other (471) (983) --------------------- Total Adjustments (3,300) (5,338) --------------------- Net Cash Used in Operating Activities (3,060) (4,922) --------------------- Cash Flows from Investing Activities: Construction Expenditures (4,282) (3,705) --------------------- Cash Flows from Financing Activities: Dividends Paid (1,291) (1,477) Proceeds from Issuance of Long-Term Debt 0 16,000 Proceeds from Note Payable Borrowings 7,820 3,330 Redemption of Preferred Stock (42) (9,360) Proceeds from Other Stock Transactions Stock Transactions 828 340 --------------------- Net Cash Provided by Financing Activities 7,315 8,833 --------------------- Net (Decrease) Increase in Cash (27) 206 Cash at Beginning of Period 356 196 --------------------- Cash at End of Period $ 329 $ 402 ===================== Supplemental Disclosures of Cash Flow Information: Cash Paid During the Year for: Interest (net of amount capitalized) $ 2,191 $ 1,569 ===================== Income Taxes (Refunds) $ 333 $ (26) =====================
See Independent Accountants' Review Report and Notes to Financial Statements. The Berkshire Gas Company Notes to Financial Statements December 31,1997 - ------------------------------------------------------------------------------- (Dollars in Thousands Except Share Amounts) NOTES: OTHER FINANCIAL INFORMATION: The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. All adjustments, which in the opinion of management are necessary for a fair presentation of the operations for the interim periods presented, have been made. These adjustments are of a normal recurring nature. The results of operations for such interim periods are not necessarily indicative of results of operations for a full year. These financial statements should be read in conjunction with the summary of accounting policies and notes to financial statements included in the Company's Annual Report on Form 10-K for the year ended June 30, 1997. NEW ACCOUNTING PRONOUNCEMENT: Effective December 31, 1997, the Company, as required, retroactively adopted Statement of Financial Accounting Standards No. 128 "Earnings Per Share" ("SFAS"). The statement established new standards for computing and presenting earnings per share ("EPS") and requires restatement of prior years information. As such, EPS for all prior periods presented has been restated to conform with SFAS 128. Due to the capital structure of the Company, basic and diluted EPS are equal. Statement of Financial Accounting Standards No. 131, "Disclosures About Segments of an Enterprise and Related Information" was issued in June, 1997. SFAS 131 establishes the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to stockholders. It also establishes standards for related disclosures about products and services, geographic areas and major customers. This statement is effective for financial statements for periods beginning after December 15, 1997. The Company does not expect that the implementation of SFAS 131 will have a material effect on the Company. CONTINGENCIES: ENVIRONMENTAL: Like other companies in the natural gas industry, the Company is a party to governmental actions associated with former gas manufacturing sites. Management estimates that expenditures to remediate and monitor known environmental sites will range from $3,290 to $12,302. In accordance with SFAS No. 5, the Company has recorded the most likely cost of $3,290. The Company's unamortized costs at December 31, 1997 were $875 and should be recovered over a seven-year period through the Cost of Gas Adjustment Clause ("CGAC"). Management's Discussion and Analysis of Financial Condition and Results of Operations - ------------------------------------------------------------------------------- Results of Operations - Second Quarter Ended December 31, 1997 versus Second Quarter Ended December 31, 1996 - ------------------------------------------------------------------------------- Berkshire Gas considers Operating Margin (Operating Margin or Gross Profit = Operating Revenues Net of Cost of Gas Sold) to be a more pertinent measure of operating results than Operating Revenues. This is due primarily to the fact that revenues include changes in the cost of natural gas which must be recovered or returned to customers through the Cost of Gas Adjustment Clause. Consequently, changes in the cost of gas will affect revenue levels, but does not have a corresponding affect on income. Additionally, margins earned on interruptible gas sold and transported are flowed back to firm customers and therefore do not affect Operating Margin. Accordingly, the discussion below pertains to Operating Margin. Operating Margin increased $641,000 or 9.9% from the three months ended December 31, 1996, primarily due to 5.7% colder weather and growth of commercial volumes and customers.
1997 1996 ---------- ---------- 3 Month Firm MCF Sold & Transported 1,710,000 1,651,000 3 Month Operating Margin $7,100,000 $6,459,000 3 Month Average Operating Margin Per Firm MCF $ 4.15 $ 3.91
Other Operating Expenses increased $457,000 or 15.7% from the three months ended December 31, 1996. The increase is primarily due to higher Administrative and General costs as a result of restructuring the Company in response to the deregulation of the gas industry, as well as increased medical benefit costs. Transmission and Distribution costs are the result of higher mains and services and customer installation expenses. Partially offsetting these increases is a decrease in Customer Accounts Expense primarily due to lower meter reading expenses, a result of automating the meter reading function. Depreciation Expense increased $64,000 due to an increase in the amount of depreciable assets. Other Income decreased $72,000 or 9.6% from 1996. The decrease was primarily due to lower Propane revenues reflecting lower margins due to market conditions, and lower Interest Income from the over/under collection of gas costs from customers through the CGAC. Due to the increase of long-term debt used to retire the 8.4% Preferred Stock series as well as additional short-term borrowings to finance gas costs, Interest Expense increased $123,000 while dividends on Preferred Stock decreased $84,000. Dividends on Common Stock increased $36,000 due to an increase in the number of shares reflecting shareholder active participation in the Dividend Reinvestment Program ("DRIP"). The Allowance for Doubtful Accounts on Utility Service Accounts Receivable increased by $102,000 since June 30, 1997 reflecting the current status of uncollectible accounts. Management's Discussion and Analysis of Financial Condition and Results of Operations - ------------------------------------------------------------------------------- Results of Operations - Six Months Ended December 31, 1997 versus Six Months Ended December 31, 1996 - ------------------------------------------------------------------------------- Operating Margin increased $687,000 or 7.7% as compared with the six months ended December 31, 1996 for the same reasons as discussed in the Second Quarter Results.
1997 1996 ---------- ---------- 6 Month Firm MCF Sold & Transported 2,424,000 2,347,000 6 Month Operating Margin $9,631,000 $8,944,000 6 Month Average Operating Margin Per Firm MCF $ 3.97 $ 3.81
Other Operating Expenses increased $386,000 or 6.9% from the six months ended December 31, 1996. The increase is due to higher Production Expenses due to the amortization of environmental cleanup costs, higher Transmission and Distribution Expenses due to re-allocation of the work force and fleet leasing, higher Customer Accounts Expenses as a result of increased collection costs, as well as higher Administrative and General costs as a result of restructuring the Company in response to the deregulation of the gas industry. Depreciation expense increased $93,000 due to an increase in the amount of depreciable assets. Other Income decreased $64,000 or 5.5%, Interest Expense increased $434,000 or 23.8%, Dividends on Preferred Stock decreased $253,000, and Dividends on Common Stock increased $68,000 from the six months ended December 31, 1996 for the same reasons previously discussed in the Results of Operations - - Second Quarter. Income Taxes decreased $157,000 or 58.8% due to a decrease in Pre-Tax Income. Management's Discussion and Analysis of Financial Condition and Results of Operations - ------------------------------------------------------------------------------- Results of Operations - Twelve Months Ended December 31, 1997 versus Twelve Months Ended December 31, 1996 - ------------------------------------------------------------------------------- Earnings available for Common Stock were $3,363,000 for the twelve months ended December 31, 1997 as compared to $3,459,000 for 1996. The decrease is due primarily to increased operating expenses. Operating Margin increased $249,000 or 1.0% from the twelve months ended December 31, 1996. Operating Margin is primarily affected by the change in the level of firm gas sold and transported. The Company's sales are affected by weather as the majority of its firm customers use natural gas for heating. An increase in the number of firm heating customers was offset by 2.2% warmer than normal temperatures.
1997 1996 ----------- ----------- 12 Month Firm MCF Sold & Transported 6,506,000 6,498,000 12 Month Operating Margin $25,939,000 $25,690,000 12 Month Average Operating Margin Per Firm MCF $ 3.99 $ 3.95
Other Operating Expenses increased $588,000 or 4.9% over the twelve months ended December 31, 1996. The increase is primarily due to Administrative and General Expenses reflecting the costs associated with restructuring and deregulation, insurance costs and Transmission and Distribution Expenses due to a re-allocation of the work force. Depreciation increased $245,000 over the twelve months ended December 31, 1996, due to an increase in the level of depreciable assets. Other Income increased $376,000 or 19.6% from 1996. The increase was primarily due to higher interest on the undercollection of prior period gas costs through the CGAC, higher Propane revenues due to higher margins during the heating season, and increased jobbing revenues. Interest Expense increased $897,000 due to the increase in long-term debt used to retire the $8,000,000, 8.4% Preferred Stock series and the expenses associated with the restructuring. Offsetting this, dividends on Preferred Stock decreased $591,000 resulting in a tax savings of $228,000. Dividends declared on Common Stock increased $92,000 due to additional shares outstanding through the Company's DRIP and to a lesser extent, an increase in quarterly dividends to $.285 per share from $.28, effective the second quarter of 1997. Liquidity and Capital Resources - December 31, 1997 The Company added approximately $3,766,000 to Plant assets during the six months ended December 31, 1997. These construction expenditures primarily represent investments in new and replacement mains and services. The capital structure of the Company at December 31, 1997 was 43.6% Common Equity, 0.4% Preferred Stock and 56.0% Long-Term Debt. The Company initially finances construction expenditures and other funding needs primarily with short-term bank borrowings, and to a lesser extent with the reinvestment of dividends. The Company continually evaluates its short-term borrowing position and based on prevailing interest rates, market conditions, etc., makes determinations regarding conversion of short-term borrowings to long-term debt or equity. Funds for environmental clean-up costs are initially financed through short-term borrowings and all such costs will be recovered over a seven year period under a ruling issued by the Massachusetts Department of Telecommunications and Energy ("DTE"), formerly referred to as the Massachusetts Department of Public Utilities ("MDPU"). NEW ACCOUNTING PRONOUNCEMENT: Effective December 31, 1997, the Company, as required, retroactively adopted Statement of Financial Accounting Standards No. 128 "Earnings Per Share " ("SFAS"). The statement established new standards for computing and presenting earnings per share ("EPS") and require restatement of prior years information. As such, EPS for all prior periods presented has been restated to conform with SFAS 128. Due to the capital structure of the Company, basic and diluted EPS are equal. Statement of Financial Accounting Standards No. 131, "Disclosures About Segments of an Enterprise and Related Information" was issued in June, 1997. SFAS 131 establishes the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to stockholders. It also establishes standards for related disclosures about products and services, geographic areas and major customers. This statement is effective for financial statements for periods beginning after December 15, 1997. The Company does not expect that the implementation of SFAS 131 will have a material effect on the Company. Cautionary Statement for Purposes of the"Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995 This Quarterly Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those contemplated by such statements. Such statements reflect management's current views, are based on many assumptions and are subject to risks and uncertainties. Certain important factors which could cause such results to differ include risks associated with the Company's maintaining contracts with specific customers, government regulation, the increasingly competitive nature of the markets in which the Company is engaged, and dependence on key personnel. These factors are not intended to represent a complete list of the general or specific risks that may affect the Company. PART II - OTHER INFORMATION Item 1. Legal Proceedings - --------------------------- No developments during the quarter. Item 2. Changes in Securities - ------------------------------- None Item 3. Defaults Upon Senior Securities - ----------------------------------------- Not Applicable Item 4. Submission of Matters to a Vote of Security Holders - ------------------------------------------------------------- On November 7, 1997, the Annual Meeting of the shareholders of the Berkshire Gas Company was held at the Crowne Plaza Hotel, Pittsfield, Massachusetts at 10:00 a.m. Proxies for said annual meeting were solicited pursuant to Regulation 14A. There was no solicitation in opposition to Management's nominees, as listed in the Proxy statement, for the election of Directors. All nominees were duly elected. Item 5. Other Information - --------------------------- The Company received approval on January 30, 1998 from the DTE to proceed with the process of forming a holding company. The Company's management and Board of Directors consider it to be in the best interest of Berkshire Gas and its shareholders to adopt a holding company structure. Berkshire Gas would become a separate wholly-owned subsidiary of a new parent company. The shareholders of Berkshire Gas would become shareholders of the parent company. This reorganization will require shareholder approval. A special meeting of shareholders will be scheduled during the first half of 1998 for the purpose of voting on this reorganization. The Company has signed an agreement to enter into a joint venture with a major energy marketer. The affiliation will extend opportunities to sell a variety of energy services in areas where the Company now operates. Item 6. Exhibits and Reports on Form 8 - K - -------------------------------------------- (a) List of Exhibits 27 - Financial Data Schedule The balance sheet as of December 31, 1997, the related statements of operations and retained earnings for three month, six month and twelve month periods ended December 31, 1997 and 1996, and the statements of cash flows for the six month periods ended December 31, 1997 and 1996 have been reviewed, prior to filing, by the Registrant's independent public accountants, Deloitte & Touche LLP, whose report covering their review of the financial statements is presented below. Deloitte & Touche LLP - ------------- ------------------------------------------------------------ City Place Telephone:(860) 280-3000 185 Asylum Street Facsimile:(860) 280-3051 Hartford, Connecticut 06103-3402 INDEPENDENT ACCOUNTANTS' REPORT The Berkshire Gas Company: We have reviewed the accompanying balance sheet of The Berkshire Gas Company as of December 31, 1997, the related statements of operations and retained earnings for the three month, six month and twelve month periods ended December 31, 1997 and 1996, and the statements of cash flows for the six month periods ended December 31, 1997 and 1996. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and of making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion. Based on our reviews, we are not aware of any material modifications that should be made to such financial statements for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the balance sheet of The Berkshire Gas Company as of June 30, 1997, and the related statements of income and retained earnings and of cash flows for the year then ended (not presented herein); and in our report dated August 15, 1997, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying balance sheet as of June 30, 1997 is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived. /s/ DELOITTE & TOUCHE LLP - ----------------------------------- Deloitte & Touche LLP February 9, 1998 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE BERKSHIRE GAS COMPANY ------------------------------------------ Registrant /s/ MICHAEL J. MARRONE ------------------------------------------ Michael J. Marrone Vice President, Treasurer & Chief Financial Officer Dated: February 12, 1998 EX-27 2 ARTICLE UT FOR 2ND QUARTER 10-Q
UT 1,000 6-MOS JUN-30-1998 DEC-31-1997 PER-BOOK 75,975 6,165 19,526 4,666 3,290 109,622 5,658 17,796 7,688 31,142 0 321 40,000 14,300 0 0 0 0 0 0 23,859 109,622 18,657 110 6,021 7,453 2,178 1,099 3,277 2,258 240 8 232 1,283 0 (3,060) .10 0
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