-----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, TcGTC3whr3lKChFYzCcrcLixuVcKdshb3NUYy9HiDsunQ6y3MmmUcovx8zZL7uV1 vz8oy5z3jAr9itmYI7Kxeg== 0000032689-96-000005.txt : 19960517 0000032689-96-000005.hdr.sgml : 19960517 ACCESSION NUMBER: 0000032689-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: EMPIRE DISTRICT ELECTRIC CO CENTRAL INDEX KEY: 0000032689 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 440236370 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03368 FILM NUMBER: 96565627 BUSINESS ADDRESS: STREET 1: 602 JOPLIN ST CITY: JOPLIN STATE: MO ZIP: 64801 BUSINESS PHONE: 4176255100 MAIL ADDRESS: STREET 1: P.O. BOX 127 CITY: JOPLIN STATE: MO ZIP: 64802 10-Q 1 UNITED STATES 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 March 31, 1996 or Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to ____________. Commission file number: 1-3368 THE EMPIRE DISTRICT ELECTRIC COMPANY (Exact name of registrant as specified in its charter) Kansas 44-0236370 (State of Incorporation) (I.R.S. Employer Identification No.) 602 Joplin Street, Joplin, Missouri 64801 (Address of principal executive offices) (zip code) Registrant's telephone number: (417) 625-5100 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 Common stock outstanding as of April 30, 1996: 16,182,036 shares. THE EMPIRE DISTRICT ELECTRIC COMPANY INDEX Page Number Part I - Financial Information: Item 1. Financial Statements: a.Statement of Income 3 b.Balance Sheet 5 c.Statement of Cash Flows 6 d.Notes to Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II Other Information: - - Item 1. Legal Proceedings - (none) Item 2. Changes in Securities - (none) Item 3. Defaults Upon Senior Securities - (none) Item 4. Submission of Matters to a Vote of Security Holders 12 Item 5. Other Information 12 Item 6. Exhibits and Reports on Form 8-K 12 Signatures 13
PART I. FINANCIAL INFORMATION Item 1. Financial Statements STATEMENT OF INCOME (UNAUDITED) Three Months Ended March 31, 1996 1995 Operating revenues: Electric $ 47,382,550 $42,161,522 Water 257,513 234,109 47,640,063 42,395,631 Operating revenue deductions: Operating expenses: Fuel 8,639,717 7,391,065 Purchased power 11,101,925 7,898,548 Other 7,472,130 7,622,122 Total operating expenses 27,213,772 22,911,735 Maintenance and repairs 2,762,649 2,818,510 Depreciation and amortization 5,282,414 4,672,709 Provision for income taxes 1,995,610 2,016,755 Other taxes 3,001,017 2,528,617 40,255,462 34,948,326 Operating income 7,384,601 7,447,305 Other income and deductions: Allowance for equity funds used 143,100 403,445 during construction Interest income 26,850 29,145 Other - net (115,247) 50,460 54,703 483,050 Income before interest charges 7,439,304 7,930,355 Interest charges: First mortgage bonds 3,695,737 3,592,716 Commercial paper 177,511 272,056 Allowance for borrowed funds used (142,430) (558,527) during construction Other 61,818 58,121 3,792,636 3,364,366 Net income 3,646,668 4,565,989 Preferred stock dividend requirements 604,085 604,085 Net income applicable to common stock $ 3,042,583 $ 3,961,904 Weighted average number of common 15,238,248 13,966,088 shares outstanding Earnings per weighted average share of $ 0.20 $ 0.28 common stock Dividends per share of common stock $ 0.32 $ 0.32
[FN] See accompanying Notes to Financial Statements.
STATEMENT OF INCOME (UNAUDITED) Twelve Months Ended March 31, 1996 1995 Operating revenues: Electric $197,068,787 $177,509,370 Water 1,013,705 970,454 198,082,492 178,479,824 Operating revenue deductions: Operating expenses: Fuel 33,173,844 30,525,497 Purchased power 39,319,554 33,922,825 Other 33,051,887 31,000,713 Voluntary early retirement program 4,583,188 - Total operating expenses 110,128,473 95,449,035 Maintenance and repairs 12,729,629 11,391,151 Depreciation and amortization 20,460,404 18,476,176 Provision for income taxes 10,398,855 10,498,055 Other taxes 11,277,251 10,206,397 164,994,612 146,020,814 Operating income 33,087,880 32,459,010 Other income and deductions: Allowance for equity funds used during 809,434 1,011,316 construction Interest income 249,197 109,975 Other - net (366,657) (68,582) 691,974 1,052,709 Income before interest charges 33,779,854 33,511,719 Interest charges: First mortgage bonds 14,961,685 13,373,976 Commercial paper 408,179 821,806 Allowance for borrowed funds used (752,709) (1,443,229) during construction Other 284,195 252,856 14,901,350 13,005,409 Net income 18,878,504 20,506,310 Preferred stock dividend requirements 2,416,340 2,070,841 Net income applicable to common stock $ 16,462,164 $ 18,435,469 Weighted average number of common 15,045,115 13,826,455 shares outstanding Earnings per weighted average share of $ 1.09 $ 1.33 common stock Dividends per share of common stock $ 1.28 $ 1.28
[FN] See accompanying Notes to Financial Statements.
BALANCE SHEET March 31, 1996 December 31, (Unaudited) 1995 ASSETS Utility plant, at original cost: Electric $683,927,358 $677,583,831 Water 5,115,555 5,073,019 Construction work in progress 18,909,348 16,303,408 707,952,261 698,960,258 Accumulated depreciation 227,954,383 223,268,355 479,997,878 475,691,903 Current assets: Cash and cash equivalents 3,797,761 3,816,776 Accounts receivable - trade, net 12,835,038 12,512,800 Accrued unbilled revenues 5,121,741 6,579,858 Accounts receivable - other 2,156,183 1,745,999 Fuel, materials and supplies 14,359,032 14,511,898 Prepaid expenses 519,562 682,413 38,789,317 39,849,744 Deferred charges: Regulatory asset 25,644,003 25,589,864 Unamortized debt expenses 14,334,139 14,546,428 Other 1,563,321 1,690,334 41,541,463 41,826,626 Total Assets $560,328,658 $557,368,273 CAPITALIZATION AND LIABILITIES: Common stock, $1 par value, 15,293,645 and 15,215,933 shares issued and outstanding, respectively $ 15,293,645 $ 15,215,933 Capital in excess of par value 127,096,941 125,690,842 Retained earnings (Note 2) 50,400,772 52,230,584 Total common stockholders' equity 192,791,358 193,137,359 Preferred stock 32,901,800 32,901,800 Long-term debt 194,708,780 194,704,814 420,401,938 420,743,973 Current liabilities: Accounts payable and accrued 11,943,402 14,308,497 liabilities Commercial paper 13,500,000 14,000,000 Customer deposits 2,535,730 2,516,903 Interest accrued 5,462,878 3,354,668 Taxes accrued, including income taxes 5,111,633 1,486,304 38,553,643 35,666,372 Noncurrent liabilities and deferred credits: Regulatory liability 19,419,369 19,680,363 Deferred income taxes 61,265,593 60,495,301 Unamortized investment tax credits 10,051,480 10,141,000 Postretirement benefits other than 4,350,049 4,343,938 pensions Other 6,286,586 6,297,326 101,373,077 100,957,928 Total Capitalization and Liabilities $560,328,658 $557,368,273
[FN] See accompanying Notes to Financial Statements.
STATEMENT OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, 1996 1995* Operating activities: Net income $ 3,646,668 $ 4,565,989 Adjustments to reconcile net income to cash flows: Depreciation 5,559,098 4,955,443 Deferred income taxes - net 402,451 205,639 Investment tax credit - net (89,520) (105,320) Allowance for equity funds used (143,100) (403,445) during construction Issuance of common stock for 401(k) 175,622 176,400 plans Other 783,625 995,798 Cash flows impacted by changes in: Receivables and accrued unbilled 725,695 2,239,766 revenues Fuel, materials and supplies 152,866 (590,654) Prepaid expenses and deferred 543,182 56,517 charges Accounts payable and accrued (2,364,805) (2,779,234) liabilities Customer deposits, interest and 5,752,366 6,087,928 taxes accrued Other liabilities and deferred (772,900) (1,163,024) credits Net cash provided by operating 14,371,248 14,241,803 activities Investing activities: Construction expenditures (9,865,072) (14,062,277) Allowance for equity funds used 143,100 403,445 during construction Net cash used in investing activities (9,721,972) (13,658,832) Financing activities: Proceeds from issuance of common 1,308,189 1,378,156 stock Dividends (5,476,480) (5,069,566) Repayment of long-term debt - (74,000) Net proceeds from short-term (500,000) 2,500,000 borrowings Net cash used in financing activities (4,668,291) (1,265,410) Net decrease in cash and cash (19,015) (682,439) equivalents Cash and cash equivalents at beginning 3,816,776 3,362,653 of period Cash and cash equivalents at end of $ 3,797,761 $ 2,680,214 period
[FN] *Certain reclassifications have been made to conform with current year reporting methodology. See accompanying Notes to Financial Statements. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) Note 1 - Summary of Significant Accounting Policies The accompanying interim financial statements do not include all disclosures included in the annual financial statements and therefore should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995. The information furnished reflects all adjustments, consisting only of normal recurring adjustments, which are in the opinion of the Company necessary to present fairly the results for the interim periods presented.
Note 2 - Retained Earnings First Quarter 1996 Balance at January 1, 1996 $52,230,584 Changes January 1 through March 31: Net Income 3,646,668 Quarterly cash dividends on common stock: - $0.32 per share (4,872,395) Quarterly cash dividends on preferred stock: 8-1/8% cumulative - $0.203125 per share (507,813) 5% cumulative - $0.125 per share (48,772) 4-3/4% cumulative - $0.11875 per share (47,500) Total changes January 1 through March 31 (1,829,812) Balance at March 31, 1996 $50,400,772
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS The following discussion analyzes significant changes in the results of operations for the three-month and twelve-month periods ended March 31, 1996, compared to the same periods ended March 31, 1995. Operating Revenues and Kilowatt-Hour Sales The Company's total electric operating revenues increased approximately $5.2 million (12.4%) during the first quarter of 1996 compared to the first quarter of 1995. Approximately 46% of such total electric operating revenues during the first three months of 1996 were from residential customers, 28% from commercial, 16% from industrial and 5% from wholesale on-system customers. The remainder of such revenues was derived from miscellaneous sources. The percentage changes from the prior year in kilowatt-hour ("Kwh") sales and revenue by major customer class were as follows:
Kwh Sales Revenue Twelve Twelve First Months First Months Quarter Ended Quarter Ended Residential 17.1% 11.5% 14.5% 15.0% Commercial 13.1 8.8 12.7 10.9 Industrial 5.2 4.0 6.2 6.2 Wholesale On-System 7.9 5.1 18.2 7.9
Residential Kwh sales and revenue increased significantly during the first quarter of 1996 compared to the first quarter of 1995 primarily due to significantly colder temperatures experienced during the first quarter of 1996, along with an increase of 2.9% in the average number of residential customers served. Residential revenues were also positively affected by the increase in Missouri rates which became effective November 15, 1995. Commercial Kwh sales and revenue increased during the quarter reflecting the cold temperatures, along with an increase of 4.5% in the average number of commercial customers served. Both commercial and industrial Kwh sales and related revenues were positively affected by continuing increases in business activity throughout the Company's service territory. Industrial revenues were also positively affected by the increase in Missouri rates which became effective November 15, 1995. Residential and commercial Kwh sales increased more than the corresponding increase in revenues due to the effect of changes in the Company's rate design in its 1994 Missouri rate increase. This restructuring resulted in, among other things, the shifting of revenue from winter billing periods to summer billing periods. On-system wholesale Kwh sales were up during the first quarter of 1996 due primarily to the colder weather conditions discussed above. The larger percentage increase in revenues associated with those sales resulted from the operation of the fuel adjustment clause, which permits the pass through to customers of higher fuel and purchased power costs, applicable to such FERC regulated sales. For the twelve months ended March 31, 1996, Kwh sales and revenues to the Company's on-system customers were up over the year earlier period, reflecting primarily warmer summer temperatures experienced during 1995 compared to the mild summer weather in 1994, significantly colder weather during the first quarter of 1996, the continued strong customer growth throughout the Company's service territory and the effect of the Missouri electric rate increase discussed above. Other Revenues In addition to sales to its own customers, the Company also sells power to other utilities to the extent it is available and provides transmission service through its system for transactions between other energy suppliers. During the first quarter of 1996, income from such off-system transactions exceeded related expenses by approximately $0.5 million, compared with approximately $0.4 million during the first quarter of 1995. For the twelve months ended March 31, 1996, income from such off-system transactions exceeded related expenses by approximately $1.9 million, compared with approximately $1.5 million during the twelve months ended March 31, 1995. The increase in net income from off-system transactions during the current periods was due primarily to an increase in revenue from transmission service transactions through the Western Systems Power Pool, of which the Company is a member. Operating Revenue Deductions During the first quarter of 1996, total operating and maintenance expenses increased approximately $4.2 million (16.5%) compared to the first quarter of 1995. Purchased power costs were up approximately $3.2 million (40.6%) during the period, primarily due to increased purchases needed to meet higher customer demand resulting from the cold weather conditions experienced during the quarter, along with the increased number of customers served. The periods of extremely cold weather during January and February caused the Company's suppliers to curtail the delivery of natural gas to the Company and other utilities in the region during those months, and also resulted in the decreased availability of low-cost nuclear and hydro-generated power from other utilities. These factors contributed to a higher demand and a tight market for purchased energy and resulted in significantly higher prices during the period. Reduced availability at certain of the Company's generating plants also resulted in the need for increased purchases of power. Scheduled spring maintenance at the Company's Asbury Plant, which did not begin until the second quarter of 1995, began on March 22 of this year. This maintenance outage was a major inspection which occurs every five years. As a result of the need to replace some blading in the turbine, the Plant is not expected to be returned to service until the end of May. Generation at the Company's Ozark Beach Hydro Plant was down approximately 63% during the first quarter compared to the same period last year due to low lake levels. Total fuel costs were up approximately $1.2 million (16.9%) during the first quarter of 1996, reflecting primarily the use of higher cost fuel oil at the Energy Center and Riverton Power Plants during periods of extremely cold weather when the supply of natural gas was curtailed. Other operating expenses decreased approximately $0.1 million (2.0%) during the period, due primarily to lower general and administrative costs. Such amounts for the first quarter of 1995 were higher due to expenses in connection with the Company's 1995 Competitive Positioning Process ("CPP") and the proceedings relating to the proposed purchase of energy from Ahlstrom Development Corporation. Maintenance and repairs expenses decreased slightly during the quarter, primarily due to the return to more normal levels of maintenance at the Riverton Plant as compared with the extended outage experienced during the first half of 1995 to repair cracks in a turbine rotor shaft, offset in part by increased expenses associated with the Asbury maintenance outage discussed above. Depreciation and amortization expenses increased approximately $0.6 million (13.0%) during the quarter due to increased levels of plant and equipment placed in service, particularly at the Company's State Line Power Plant. Total income taxes declined slightly during the first quarter due primarily to lower taxable income during the current period. Other taxes were up approximately $0.5 million (18.7%) during the quarter reflecting increased property tax rates, higher levels of plant-in-service and increased franchise taxes relating to higher revenues. During the twelve months ended March 31, 1996, total operating and maintenance expenses were up approximately $16.0 million (15.0%) compared to the year ago period. Total purchased power costs were up approximately $5.4 million (15.9%), primarily due to increased purchases of higher-cost energy needed to meet increased customer demand resulting from the warm summer temperatures experienced during 1995, the cold weather during the first quarter of 1996 and the increase in the number of customers served. Total fuel costs were up approximately $2.6 million (8.7%) during the period, due primarily to a substantial increase in generation from higher-cost, gas-fired combustion turbine units following completion of the conversion of the Company's Energy Center to utilize gas as a primary fuel, as well as the commercial availability of the State Line Power Plant. Also affecting fuel costs during the twelve-month period was the use of higher cost fuel oil during periods of extremely cold weather in the first quarter of 1996 when the supply of natural gas was curtailed. Other operating expenses increased approximately $6.6 million (26.4%) during the twelve months ended March 31, 1996, compared to the same period last year, due primarily to higher general and administrative costs associated with the CPP, the proceedings relating to the proposed purchase of energy from Ahlstrom Development Corporation, additional costs related to implementation of FAS 106, increased work on the Company's distribution system and increased customer accounts expense. Maintenance and repair expenses increased approximately $1.3 million (11.8%) during the period, due primarily to increased maintenance performed on the Company's Asbury and Riverton generating units as well as increased work performed on the Company's distribution system resulting in part from the growing size of the system. Depreciation and amortization expense increased approximately $2.0 million (10.7%) due to increased levels of plant and equipment placed in service, particularly at the Company's State Line Power Plant. Total provision for income taxes decreased slightly due to lower taxable income. Other taxes were up approximately $1.1 million (10.5%) during the period reflecting increased property tax rates, higher levels of plant-in-service and increased franchise taxes relating to higher revenues. Nonoperating Items Total allowance for funds used during construction (AFUDC) decreased substantially during both current year periods, reflecting lower levels of construction work in progress, particularly due to the completion of the Company's new State Line Plant. Interest income during the first quarter of 1996 was virtually level with the same period last year, as higher rates earned on investments offset the lower balances of cash available for investment. For the twelve months ended March 31, 1996, interest income was up over the same period in 1995, reflecting higher rates of interest earned on investments and the temporary investment of the proceeds from the Company's issuance of a new series of first mortgage bonds prior to the redemption of another series of first mortgage bonds. "Other-net" was higher during the 1995 periods due to the Company's share of the gain recognized from the sale of 248 railcars by the joint-owners of the Iatan Plant. Interest charges on first mortgage bonds increased in both current year periods due to additional issuances of the Company's First Mortgage Bonds. Other interest charges were down during the periods due to decreased levels of short-term borrowing. Earnings For the first quarter of 1996, earnings per share of common stock were $0.20 compared to $0.28 earned during the first quarter of 1995. Earnings per common share for the twelve months ended March 31, 1996, were $1.09 compared to $1.33 earned during the same period last year. Increased revenues resulting from weather conditions favorable to increased Kwh sales, continued customer growth and the Missouri rate increase were more than offset by the increase in expenses discussed above, particularly purchased power expenses and higher fuel costs. Earnings per share also reflect decreased levels of AFUDC and the Company's issuance of 900,000 shares of common stock in April 1995. For the twelve months ended March 31, 1996, earnings per share of common stock were down due to the factors discussed above with respect to the first quarter of 1996, along with the one-time pre-tax charge of approximately $4.6 million related to the Company's enhanced voluntary early retirement program (which reduced earnings by approximately $0.19 per share), increased preferred stock dividend requirements resulting from the Company's issuance of preferred stock in a public offering in June 1994, and increased interest requirements resulting from the issuance of first mortgage bonds. LIQUIDITY AND CAPITAL RESOURCES The Company's construction-related expenditures totaled $9.9 million during the first quarter of 1996, compared to $14.1 million for the same period in 1995. During the first quarter of 1996, approximately 90% of construction expenditures and other funds requirements were satisfied internally from operations; the remainder was provided from the issuance of commercial paper, and from the sale of common stock through the Company's Dividend Reinvestment Plan and Employee Stock Purchase Plan. The Company's construction expenditures are expected to total approximately $60.7 million in 1996, including approximately $21.7 million for additions to the Company's distribution system to meet projected increases in customer demand and approximately $15.7 million for new generating facilities. The Company currently estimates that internally generated funds will provide approximately one-half of the funds required for the remainder of its 1996 construction expenditures. As in the past, the Company intends to utilize short-term debt to finance the additional amounts needed for such construction and repay such borrowings with the proceeds of sales of public offerings of long-term debt or equity securities, including the sale of the Company's common stock pursuant to its Dividend Reinvestment Plan and Employee Stock Purchase Plan and from internally-generated funds. Subject to market and other conditions, the Company currently plans to issue first mortgage bonds during the second half of 1996. The Company will continue to utilize short-term debt as needed to support normal operations or other temporary requirements. On April 9, 1996, the Company sold to the public in an underwritten offering 880,000 shares of its Common Stock. The net proceeds of the offering of approximately $15.0 million were added to the Company's general funds and used to repay short-term indebtedness or for expenses incurred in connection with the Company's construction program. PART II. OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders. (a) The annual meeting of Common Stockholders was held on April 25, 1996. (b) The following persons were re-elected Directors of the Company to serve until the 1999 Annual Meeting of Stockholders: M.F. Chubb, Jr. (11,505,048 votes for; 188,110 withheld authority). R.L. Lamb (11,531,132 votes for; 162,026 withheld authority). R.E. Mayes (11,505,956 votes for; 187,202 withheld authority). The term of office as Director of the following other Directors continued after the meeting: V. E. Brill, R. D. Hammons, R. C. Hartley, J. R. Herschend, F. E. Jeffries, M. W. McKinney and M. M. Posner. Item 5. Other Information. At March 31, 1996, the Company's ratio of earnings to fixed charges, and ratio of earnings to fixed charges and preferred stock dividend requirements, were 2.86x and 2.31x, respectively. See Exhibit (12) hereto. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits. (12) Computation of Ratio and Earnings to Fixed Charges and Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements. (27) Financial Data Schedule for March 31, 1996 (b) No reports on Form 8-K were filed during the first quarter of 1996. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. THE EMPIRE DISTRICT ELECTRIC COMPANY Registrant By R. B. Fancher --------------------- R. B. Fancher Vice President - Finance By G. A. Knapp ---------------------- G. A. Knapp Controller and Assistant Treasurer May 15, 1996 EX-12 2
EXHIBIT (12) COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS Twelve Months Ended March 31, 1996 Income before provision for income taxes and fixed $ 45,047,230 charges (Note A) Fixed charges: Interest on first mortgage bonds $ 14,109,162 Amortization of debt discount and expense less premium 852,523 Interest on short-term debt 412,679 Other interest 279,695 Rental expense representative of an interest factor (Note 117,887 B) Total fixed charges 15,771,946 Preferred stock dividend requirements: Preferred stock dividend requirements not deductible for 2,338,304 tax purposes Ratio of income before provision for incomes taxes to net 1.551 income Nondeductible dividend requirements 3,626,710 Deductible dividends 78,036 Total preferred stock dividend requirements 3,704,746 Total combined fixed charges and preferred stock dividend $ 19,476,692 requirements Ratio of earnings to fixed charges 2.86x Ratio of earnings to combined fixed charges and preferred 2.31x stock dividend requirements
[FN] NOTE A: For the purpose of determining earnings in the calculation of the ratio, net income has been increased by the provision for income taxes, non-operating income taxes and by the sum of fixed charges as shown above. NOTE B: One-third of rental expense (which approximates the interest factor). EX-27 3
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AT MARCH 31, 1996 AND THE STATEMENT OF INCOME AND THE STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTRIETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1996 MAR-31-1996 PER-BOOK 479,997,878 0 38,789,317 41,541,463 0 560,328,658 15,293,645 127,096,941 50,400,772 192,791,358 0 32,901,800 194,708,780 0 0 13,500,000 0 0 0 0 126,426,720 560,328,658 47,640,063 1,995,610 38,259,852 40,255,462 7,384,601 54,703 7,439,304 3,792,636 3,646,668 604,085 3,042,583 4,872,395 3,695,737 14,371,248 0.20 0.20
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