-----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, RK9SCK92CVQfENZCT4amp024bL0WzUIzc2OqucEK8dkXwCNaoW4hA1rt1gK/segw pnFMHcFLcIMjx284OxvPmQ== 0000910647-96-000054.txt : 19960515 0000910647-96-000054.hdr.sgml : 19960515 ACCESSION NUMBER: 0000910647-96-000054 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 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: 1934 Act SEC FILE NUMBER: 000-01857 FILM NUMBER: 96562654 BUSINESS ADDRESS: STREET 1: 115 CHESHIRE RD CITY: PITTSFIELD STATE: MA ZIP: 01201-1388 BUSINESS PHONE: 4134421511 10-Q 1 BODY OF 10Q--FOR 3RD 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 March 31, 1996 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 filling requirements for the past 90 days. Yes ____X____ No ________ At March 31, 1996, the Registrant had issued and outstanding 2,137,963 shares of Common Stock, par value $2.50. THE BERKSHIRE GAS COMPANY STATEMENTS OF INCOME AND RETAINED EARNINGS - Unaudited ------------------------------------------------------ (In Thousands Except Share Amounts)
Three Months Three Months Ended 3/31/96 Ended 3/31/95 ------------- ------------- Operating Revenues ...................................... $ 21,059 $ 21,615 Cost of Gas Sold ........................................ 9,229 11,218 ---------- ---------- Operating Margin ........................................ 11,830 10,397 ---------- ---------- Other Operating Expenses ................................ 3,392 3,396 Depreciation Expense .................................... 1,875 1,680 ---------- ---------- Total ............................................. 5,267 5,076 ---------- ---------- Utility Operating Income ................................ 6,563 5,321 Other Income - Net ...................................... 635 548 ---------- ---------- Operating and Other Income .............................. 7,198 5,869 Interest Expense ........................................ 937 946 Other Taxes ............................................. 766 743 ---------- ---------- Pre-Tax Income .................................... 5,495 4,180 Income Taxes ............................................ 2,108 1,624 ---------- ---------- NET INCOME .............................................. 3,387 2,556 Retained Earnings at Beginning of Period ................ 5,770 5,580 ---------- ---------- Total ............................................. 9,157 8,136 ---------- ---------- Dividends Declared: Preferred Stock ....................................... 173 174 Common Stock .......................................... 588 575 ---------- ---------- Total Dividends ................................... 761 749 ---------- ---------- Retained Earnings at End of Period ...................... $ 8,396 $ 7,387 ========== ========== Earnings Available for Common Stock ..................... $ 3,214 $ 2,382 ---------- ---------- Average Shares of Common Stock Outstanding .............. 2,137,963 2,091,304 ---------- ---------- Earnings Per Share of Common Stock ...................... $ 1.50 $ 1.14 ========== ==========
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY STATEMENTS OF INCOME AND RETAINED EARNINGS - Unaudited ------------------------------------------------------ (In Thousands Except Share Amounts)
Nine Months Nine Months Ended 3/31/96 Ended 3/31/95 ------------- ------------- Operating Revenues ...................................... $ 37,164 $ 38,533 Cost of Gas Sold ........................................ 16,246 19,975 ---------- ---------- Operating Margin ........................................ 20,918 18,558 ---------- ---------- Other Operating Expenses ................................ 8,649 8,932 Depreciation Expense .................................... 3,192 2,902 ---------- ---------- Total ............................................. 11,841 11,834 ---------- ---------- Utility Operating Income ................................ 9,077 6,724 Other Income - Net ...................................... 1,417 1,399 ---------- ---------- Operating and Other Income .............................. 10,494 8,123 Interest Expense ........................................ 2,716 2,806 Other Taxes ............................................. 1,359 1,359 ---------- ---------- Pre-Tax Income ........................................ 6,419 3,958 Income Taxes ............................................ 2,468 1,512 ---------- ---------- NET INCOME .............................................. 3,951 2,446 Retained Earnings at Beginning of Period ................ 6,718 7,098 ---------- ---------- Total ............................................. 10,669 9,544 ---------- ---------- Dividends Declared: Preferred Stock ....................................... 519 521 Common Stock .......................................... 1,754 1,636 ---------- ---------- Total Dividends ....................................... 2,273 2,157 ---------- ---------- Retained Earnings at End of Period ...................... $ 8,396 $ 7,387 ========== ========== Earnings Available for Common Stock ..................... $ 3,432 $ 1,925 ---------- ---------- Average Shares of Common Stock Outstanding .............. 2,124,748 1,978,316 ---------- ---------- Earnings Per Share of Common Stock ...................... $ 1.62 $ 0.97 ========== ==========
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY STATEMENTS OF INCOME AND RETAINED EARNINGS - Unaudited ------------------------------------------------------ (In Thousands Except Share Amounts)
Twelve Months Twelve Months Ended 3/31/96 Ended 3/31/95 ------------- ------------- Operating Revenues ...................................... $ 46,564 $ 48,122 Cost of Gas Sold ........................................ 21,091 24,901 ---------- ---------- Operating Margin ........................................ 25,473 23,221 ---------- ---------- Other Operating Expenses ................................ 11,306 12,388 Depreciation Expense .................................... 3,913 3,603 ---------- ---------- Total ............................................. 15,219 15,991 ---------- ---------- Utility Operating Income ................................ 10,254 7,230 Other Income - Net ...................................... 1,534 2,160 ---------- ---------- Operating and Other Income .............................. 11,788 9,390 Interest Expense ........................................ 3,576 3,628 Other Taxes ............................................. 1,697 1,734 ---------- ---------- Pre-Tax Income ........................................ 6,515 4,028 Income Taxes ............................................ 2,480 1,678 ---------- ---------- NET INCOME .............................................. 4,035 2,350 Retained Earnings at Beginning of Period ................ 7,387 7,463 ---------- Surplus Invested in Plant ............................... 390 ---------- Total ............................................. 11,422 10,203 ---------- ---------- Dividends Declared: Preferred Stock ....................................... 692 694 Common Stock .......................................... 2,333 2,122 ---------- ---------- Total Dividends ....................................... 3,025 2,816 ---------- ---------- Retained Earnings at End of Period ...................... $ 8,397 $ 7,387 ========== ========== Earnings Available for Common Stock ..................... $ 3,343 $ 1,656 ---------- ---------- Average Shares of Common Stock Outstanding .............. 2,116,847 1,912,455 ---------- ---------- Earnings Per Share of Common Stock ...................... $ 1.58 $ 0.87 ========== ==========
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY BALANCE SHEETS -------------------------------------- (In Thousands)
March 31, June 30, 1996 1995 ----------- --------- (Unaudited) (Audited) ASSETS: Utility Plant: Utility Plant - at original cost ...................... $95,521 $91,863 Less: Accumulated Depreciation ........................ 25,057 22,537 ------- ------- Utility Plant - Net ................................. 70,464 69,326 ------- ------- Other Property: Other Property - at original cost ..................... 11,143 10,766 Less: Accumulated Depreciation ....................... 5,184 4,804 ------- ------- Other Property - Net ................................ 5,959 5,962 ------- ------- Current Assets: Cash and Cash Equivalents ............................. 414 492 Accounts Receivable Utility Service (less allowance: Mar. 1996-$915; June 1995-$832) ...................... 9,428 6,103 Liquefied Petroleum & Merchandise (less allowance: Mar. 1996-$83; June 1995-$119) ...................... 1,130 509 Other Receivables ..................................... 116 234 Inventories (at the lower of average cost or market): Natural Gas ......................................... 64 1,702 Liquefied Petroleum ................................. 237 250 Materials and Supplies .............................. 1,327 1,284 Prepayments ........................................... 283 178 ------- ------- Total Current Assets .............................. 12,999 10,752 ------- ------- Deferred Debits: Unamortized Debt Expense ............................ 544 578 Capital Stock Expense ............................... 534 638 Environmental Cleanup Costs ......................... 1,240 1,046 Other ............................................... 1,216 787 ------- ------- Total Deferred Debits ............................. 3,534 3,049 ------- ------- Recoverable Environmental Cleanup Costs ............... 2,894 2,894 ------- ------- TOTAL ASSETS ...................................... $95,850 $91,983 ======= =======
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY BALANCE SHEETS -------------------------------------- (In Thousands)
March 31, June 30, 1996 1995 ----------- --------- (Unaudited) (Audited) LIABILITIES AND OTHER CREDITS Common Shareholders' Equity: Common Stock .............................................. $ 5,345 $ 5,259 Premium on Common Stock ................................... 16,147 15,711 Retained Earnings ......................................... 8,397 6,718 ------- ------- Total Common Shareholders' Equity ..................... 29,889 27,688 ------- ------- Redeemable Cumulative Preferred Stock ....................... 8,406 8,448 ------- ------- Long-Term Debt(less current maturities) ..................... 24,000 30,983 ------- ------- Current Liabilities: Notes Payable to Banks .................................... 10,410 0 Current Maturities of Long-Term Debt ...................... 0 900 Accounts Payable .......................................... 3,613 3,091 Taxes Accrued ............................................. 2,056 125 Other Current Liabilities ................................. 2,183 4,557 Refundable Gas Costs ...................................... 2,406 4,117 ------- ------- Total Current Liabilities ............................. 20,668 13,751 ------- ------- Other Liabilities ........................................... 1,190 961 ------- ------- Unamortized Investment Tax Credit ........................... 1,299 1,355 ------- ------- Deferred Income Taxes ....................................... 7,504 6,864 ------- ------- Reserve for Recoverable Environmental Cleanup Costs ......... 2,894 2,894 ------- ------- TOTAL LIABILITIES AND OTHER CREDITS ......................... $95,850 $91,983 ======= =======
See Independent Accountants' Review Report and Notes to Financial Statements. THE BERKSHIRE GAS COMPANY STATEMENTS OF CASH FLOWS - Unaudited ---------------------------------------------- (In Thousands)
Nine Months Nine Months Ended 3/31/96 Ended 3/31/95 ------------- ------------- Cash flows from Operating Activities: Net Income .......................................... $ 3,951 $ 2,446 Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities: Depreciation and Amortization ....................... 3,877 3,536 Provision for Losses on Accounts Receivable ......... 967 602 Refundable Gas Costs ................................ (1,711) 3,069 Deferred Income Taxes ............................... 640 (1,324) Changes in Assets and Liabilities Which Provided (Used) Cash: Accounts Receivable ................................. (4,913) (3,071) Other Receivables ................................... 118 59 Inventories ......................................... 1,608 1,147 Capital Stock Expense ............................... 0 (440) Accounts Payable .................................... 522 (97) Taxes Accrued ....................................... 1,931 3,231 Other ............................................... (2,872) 818 ------- ------- Net Cash Provided by Operating Activities ............. 4,118 9,976 ------- ------- Cash Flows from Investing Activities: Construction Expenditures ........................... (4,930) (6,031) ------- ------- Net Cash Used in Investing Activities ............... (4,930) (6,031) ------- ------- Cash Flows from Financing Activities: Dividends Paid ...................................... (2,273) (2,157) Principal Payments on Long-Term Debt ................ (7,883) (100) Proceeds from (Payments on)Notes Payable ............ 10,410 (6,580) Proceeds from Sale of Common Stock .................. 0 4,449 Proceeds from Other Stock Transactions - Net ........ 480 453 ------- ------- Net Cash Provided by Financing Activities ........... 734 (3,935) ------- ------- Net Increase/(Decrease)in Cash ........................ (78) 10 Cash and Cash Equivalents at Beginning of Period ...... 492 65 ------- ------- Cash and Cash Equivalents at End of Period ............ $ 414 $ 75 ======= =======
See Independent Accountants' Review Report and Notes to Financial Statements. The Berkshire Gas Company Notes to Financial Statements March 31, 1996 - ------------------------------------------------------------------------------- (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 to 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, 1995. RECLASSIFICATION: The Company has reclassified certain amounts for prior years to conform with the 1996 presentation. CONTINGENCIES: ENVIRONMENTAL: Federal, State and local laws and regulations establishing standards and requirements for protection of the environment have increased in number and scope in recent years. The Berkshire Gas Company (the "Company") cannot predict the future impact of such standards and requirements, which are subject to change and can have retroactive effect. During fiscal 1990, the Massachusetts Department of Public Utilities ("MDPU") issued a generic ruling on cost recovery for environmental cleanup with respect to former gas manufacturing sites. Under the ruling, the Company may recover annual cleanup costs, excluding carrying costs, over a seven year period through the Cost of Gas Adjustment Clause ("CGAC"). This ruling also provides for the sharing of any proceeds received from insurance carriers equally between the Company and its ratepayers, and establishes maximum amounts that can be recovered from customers in any one year. During the period ended March 31, 1996, the Company continued the analysis and field review of two parcels of real estate formerly used for gas manufacturing operations, which had been found to contain coal tar deposits and other substances associated with by-products of the gas manufacturing process. The review and assessment process began in 1985 with respect to the first site which is owned by the Company, and in 1989 with respect to the second site, which was formerly owned by the Company. With the review and approval of the Massachusetts Department of Environmental Protection ("MDEP"), at the first site, the investigative work is near completion and remedial alternatives are being examined. At the second site, investigative activities are continuing. It is difficult to predict the potential financial impact of the sites until first, the nature and risk is fully characterized and second, the remedial strategies and related technologies are determined. The general philosophy of the Company is one of source removal and/or reduction coupled with risk minimization. Assuming successful implementation, it is anticipated that through 2010 the level of expenditures for the site will range from $2,894 to $8,777. The anticipated level of expenditures has remained the same from prior year estimates resulting from the Company's analysis and review of the sites and the commencement of clean-up activities at the first site. The Company has recorded the most likely cost of $2,894 in accordance with SFAS No. 5. Ultimate expenditures cannot be determined until a remedial action plan can be developed and approved by the MDEP. The Company's unamortized costs at March 31, 1996 were $1,240 and should be recovered using the formula discussed above. Management's Discussion and Analysis of Financial Condition and Results of Operations - ------------------------------------------------------------------------------- Results of Operations - Third Quarter Ended March 31, 1996 versus Third Quarter Ended March 31, 1995 - ------------------------------------------------------------------------------- Since income is not significantly affected by changes in revenue due to changes in gas costs, the discussion below pertains to Operating Margin (Operating Margin or Gross Profit = Operating Revenues Net of Cost of Gas Sold). Berkshire Gas Company considers Operating Margin to be a more pertinent measure of operating results than Operating Revenues. Operating Margin increased $1,433,000 or 13.8% from the three months ended March 31, 1995. Operating Margin is primarily affected by the change in the level of firm gas sold and transported. The Company is required to recover or return to the customer through the Cost of Gas Adjustment Clause any changes in the cost of natural gas. Interruptible gas sold and transported has no affect on Operating Margin since those margins are flowed back to the firm customer. The increase from 1995 is primarily due to higher volumes of firm gas sold due to 13% colder winter weather than the prior year, and to a lesser extent, an increase in the number of customers.
1996 1995 ---- ---- 3 Month Firm MCF Sold & Transported ........................ 2,791,956 2,470,615 3 Month Operating Margin ................................... $11,830,000 $10,397,000 3 Month Average Operating Margin Per Firm MCF .............. $ 4.24 $ 4.21
Depreciation Expense increased $195,000 due to an increase in the amount of depreciable assets. Other Income increased $87,000 from the quarter ended March 31, 1995. The increase was primarily due to an increase in propane revenues of $79,000 due to colder than normal weather, and to a lesser extent, an increased customer base. Other Taxes increased $23,000 due to increase in personal property taxes resulting from increased plant. Income Taxes increased $484,000 due to changes in net earnings as discussed above. Management's Discussion and Analysis of Financial Condition and Results of Operations - ------------------------------------------------------------------------------- Results of Operations - Nine Months Ended March 31, 1996 versus Nine Months Ended March 31, 1995 - ------------------------------------------------------------------------------- Operating Margin increased $2,360,000 or 12.7% as compared with the nine months ended March 31, 1995. During the period November 1 - April 30, the Company bills its' customers at a winter rate structure that provides greater operating margins than the summer rate structure. The increase over 1995 resulted from 15% colder weather during November through March causing higher volumes of firm gas sold at winter rates, and to a lesser extent, an increase in the number of customers.
1996 1995 ---- ---- 9 Month Firm MCF Sold & Transported ........................ 5,155,001 4,659,255 9 Month Operating Margin ................................... $20,918,000 $18,558,000 9 Month Average Operating Margin Per Firm MCF .............. $ 4.06 $ 3.98
Other Operating Expenses decreased $283,000 or 3.2% from the nine months ended March 31, 1995. The decrease is primarily due to reduced Administrative and General costs of $399,000 due to a reduction in regulatory costs, and reduced legal and consulting expenses, lower Transmission and Distribution expense of $162,000 due to personnel reduction and cost containment measures, reduced Customer Accounts expense of $67,000 due to automation, partially offset by an increase in bad debt expense of $385,000. Depreciation expense increased $290,000 or 10.0% due to an increase in the level of depreciable assets. Other Income increased $18,000 from 1995 primarily due to an increase in Propane revenues of $226,000 due to colder weather, partially offset by lower interest income of $174,000 from the over/under collection of gas costs from customers through the CGAC. Interest Expense decreased $90,000 or 3.2% due to favorable borrowing rates as well as retirement of long-term debt. Income Taxes increased $956,000 due to changes in net earnings as discussed above. Management's Discussion and Analysis of Financial Condition and Results of Operations - ------------------------------------------------------------------------------- Results of Operations - Twelve Months Ended March 31, 1996 versus Twelve Months Ended March 31, 1995 - ------------------------------------------------------------------------------- Earnings available for Common Stock were $3,343,000 for the twelve months ended March 31, 1996 as compared to $1,656,000 for 1995. The increase is due primarily to 15% colder weather during the winter of fiscal 1996. Operating Margin increased $2,252,000 or 9.7% over the twelve months ended March 31, 1995. 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. The increase over 1995 is primarily due to higher volumes of firm gas sold due to 12.5% colder temperatures for the twelve month period.
1996 1995 ---- ---- 12 Month Firm MCF Sold & Transported ....................... 6,443,836 5,975,641 12 Month Operating Margin .................................. $25,473,000 $23,221,000 12 Month Average Operating Margin Per Firm MCF ............. $ 3.95 $ 3.89
Other Operating Expenses decreased $1,082,000 or 8.7% from the twelve months ended March 31, 1995 due to the Company's cost containment programs. The decrease reflects lower Administrative and General costs of $964,000 due to lower insurance, regulatory costs, legal and association dues; reduced Transmission and Distribution of $243,000 due to reduced payroll and lower system maintenance costs, lower marketing costs from reduced payroll and advertising, partially offset by higher levels of uncollectible accounts of $243,000. Depreciation expense increased $310,000 due to an increase in the amount of depreciable assets. Other Income decreased $626,000 from 1995. The decrease was due to an insurance settlement that was included in the prior period in the amount of $403,000 (net of taxes and amounts previously recorded). Interest Income was $205,000 less resulting from the overcollection of prior period gas costs through the CGAC. Jobbing revenues were $89,000 less due to lower levels of service activity and appliance rental revenues were $79,000 less due to higher depreciation on equipment, partially offset by an increase in propane revenue of $317,000 due to colder weather during the winter of fiscal 1996, and a larger customer base. Interest Expense decreased $52,000 for the reasons noted above in the nine month explanations. Income Taxes increased $802,000 over 1995 due to increased earnings. Dividends declared on Common Stock increased $211,000 due to additional shares outstanding. The Company sold 295,000 shares of Common Stock during the second quarter of fiscal 1995, and sold 47,000 shares through the Dividend Reinvestment Plan ("DRIP") over the twelve month period. Liquidity and Capital Resources - March 31, 1996 The Company added approximately $4,930,000 to Plant assets during the nine months ended March 31, 1996. These construction expenditures primarily represent investments in new and replacement mains and services, and the conversion to automated meter reading. The capital structure of the Company at March 31, 1996 was 48.0% Common Equity, 13.5% Preferred Stock and 38.5% 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. As part of this process and in keeping with its cost containment incentives, the Company called for and redeemed those series of debt that presently do not have high premium calls, First Mortgage Bonds, Series K, 7.875% at $520,000 and First Mortgage Bonds, Series M, 9.375% at $640,000 and the 9 1/8% Debentures at $5,743,000 during the third quarter of fiscal 1996. The Company is negotiating the purchase of the 8.4% Preferred stock of $8,000,000. 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 MDPU. PART II - OTHER INFORMATION Item 1. Legal Proceedings - ------- ----------------- The Company and the general contractor, along with the general contractor's bonding company have reached an agreement to resolve all issues in relation to the construction of a transportation pipeline for which the Company served as developer. That settlement was approved by the Bankruptcy Court on February 16, 1996 and had no material financial impact on the Company. During the second quarter the Company, along with some current and former employees, were named in an harassment suit. Although the Company cannot predict the ultimate outcome of the claim, which the Company believes is without merit, it intends to contest the claim vigorously and believes that the outcome will not have a material adverse impact on the overall financial position or results of operations. Item 2. Changes in Securities - ------- --------------------- Not Applicable Item 3. Defaults Upon Senior Securities - ------- ------------------------------- Not Applicable Item 4. Other Information - ------- ----------------- Not Applicable Item 5. Exhibits and Reports on Form 8 - K - ------- ---------------------------------- (a) List of Exhibits 27 - Financial Data Schedule The balance sheet as of March 31, 1996, the related statements of income and retained earnings for the three, nine and twelve month periods ended March 31, 1996 and 1995, and the statements of cash flows for the nine month periods ended March 31, 1996 and 1995 have been reviewed, prior to filing, by the Registrants 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 March 31, 1996, the related statements of income and retained earnings for the three month, nine month and twelve month periods ended March 31, 1996 and 1995, and the statements of cash flows for the nine month periods ended March 31, 1996 and 1995. 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 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 review, 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, 1995, 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 25, 1995, 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, 1995 is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived. Deloitte & Touche LLP May 8, 1996 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: May 14, 1996 EX-27 2 FDS FOR 3RD QUARTER OF 10-Q
UT 9-MOS JUN-30-1996 MAR-31-1996 PER-BOOK 70,464 5,959 12,999 3,534 2,894 95,850 5,345 16,147 8,397 29,889 0 8,406 24,000 10,410 0 0 0 0 0 0 23,145 95,850 37,164 2,468 8,649 11,841 9,077 1,417 10,494 2,716 3,951 519 3,432 1,754 0 (78) 1.62 0
-----END PRIVACY-ENHANCED MESSAGE-----