-----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, G1nUMkGXJaZ1Bpo90coS0K5vZvBFghrQ4IEazSkHBHSDwV6o+y2rPPCVZgLSIith Jluk/6va3ky60s8/ipu5ng== 0000032689-97-000005.txt : 19970512 0000032689-97-000005.hdr.sgml : 19970512 ACCESSION NUMBER: 0000032689-97-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970509 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: 97598786 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, 1997 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, 1997: 16,520,313 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 12 Holders 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, 1997 1996 Operating revenues: Electric $47,056,481 $47,382,550 Water 248,286 257,513 47,304,767 47,640,063 Operating revenue deductions: Operating expenses: Fuel 6,781,084 8,639,717 Purchased power 12,578,852 11,101,925 Other 7,910,516 7,472,130 Total operating expenses 27,270,452 27,213,772 Maintenance and repairs 3,032,191 2,762,649 Depreciation and amortization 5,556,021 5,282,414 Provision for income taxes 1,515,833 1,995,610 Other taxes 2,856,839 3,001,017 40,231,336 40,255,462 Operating income 7,073,431 7,384,601 Other income and deductions: Allowance for equity funds used - 143,100 during construction Interest income 23,816 26,850 Other - net (121,514) (115,247) (97,698) 54,703 Income before interest charges 6,975,733 7,439,304 Interest charges: Long-term debt 4,148,202 3,695,737 Allowance for borrowed funds used (511,959) (142,430) during construction Other 214,674 239,329 3,850,917 3,792,636 Net income 3,124,816 3,646,668 Preferred stock dividend requirements 604,085 604,085 Net income applicable to common stock $2,520,731 $3,042,583 Weighted average number of common 16,457,197 15,238,248 shares outstanding Earnings per weighted average share of $0.15 $0.20 common stock Dividends per share of common stock $0.32 $0.32
See accompanying Notes to Financial Statements.
STATEMENT OF INCOME (UNAUDITED) Twelve Months Ended March 31, 1997 1996 Operating revenues: Electric $204,607,553 $197,068,787 Water 1,041,109 1,013,705 205,648,662 198,082,492 Operating revenue deductions: Operating expenses: Fuel 31,715,702 33,173,844 Purchased power 48,869,956 39,319,554 Other 30,484,532 33,051,887 Voluntary early retirement program - 4,583,188 Total operating expenses 111,070,190 110,128,473 Maintenance and repairs 13,941,625 12,729,629 Depreciation and amortization 21,863,118 20,460,404 Provision for income taxes 11,320,223 10,398,855 Other taxes 11,112,308 11,277,251 169,307,464 164,994,612 Operating income 36,341,198 33,087,880 Other income and deductions: Allowance for equity funds used 395,795 809,434 during construction Interest income 155,335 249,197 Other - net (350,793) (366,657) 200,337 691,974 Income before interest charges 36,541,535 33,779,854 Interest charges: Long-term debt 15,334,029 14,961,685 Allowance for borrowed funds used (1,250,964) (752,709) during construction Other 931,115 692,374 15,014,180 14,901,350 Net income 21,527,355 18,878,504 Preferred stock dividend requirements 2,416,340 2,416,340 Net income applicable to common stock $19,111,015 $16,462,164 Weighted average number of common 16,318,551 15,045,115 shares outstanding Earnings per weighted average share of $1,17 $1.09 common stock Dividends per share of common stock $1.28 $1.28
See accompanying Notes to Financial Statements.
BALANCE SHEET March 31, 1997 December 31, (Unaudited) 1996 ASSETS Utility plant, at original cost: Electric $731,653,031 $714,913,653 Water 5,433,931 5,331,286 Construction work in progress 35,646,463 37,016,435 772,733,425 757,261,374 Accumulated depreciation 247,684,340 242,051,460 525,049,085 515,209,914 Current assets: Cash and cash equivalents 3,128,621 2,246,136 Accounts receivable - trade, net 11,312,397 12,704,920 Accrued unbilled revenues 4,294,153 6,423,760 Accounts receivable - other 2,606,729 2,874,669 Fuel, materials and supplies 14,081,185 14,435,741 Prepaid expenses 874,042 796,413 36,297,127 39,481,639 Deferred charges: Regulatory assets 37,640,339 37,831,661 Unamortized debt issuance costs 3,576,271 3,633,349 Other 770,613 823,177 41,987,223 42,288,187 Total Assets $603,333,435 $596,979,740 CAPITALIZATION AND LIABILITIES: Common stock, $1 par value, 16,511,329 and 16,436,559 shares issued and outstanding, respectively $16,511,329 $16,436,559 Capital in excess of par value 146,742,812 145,313,610 Retained earnings (Note 2) 48,597,826 51,340,554 Total common stockholders' equity 211,851,967 213,090,723 Preferred stock 32,901,800 32,901,800 Long-term debt 219,537,643 219,533,678 464,291,410 465,526,201 Current liabilities: Accounts payable and accrued 12,139,019 14,607,179 liabilities Commercial paper 11,000,000 7,500,000 Customer deposits 2,894,229 2,820,896 Interest accrued 6,022,396 3,455,254 Taxes accrued, including income 3,907,922 449,771 taxes 35,963,566 28,833,100 Noncurrent liabilities and deferred credits: Regulatory liability 18,371,910 18,648,961 Deferred income taxes 65,590,667 64,992,745 Unamortized investment tax credits 9,498,910 9,561,000 Postretirement benefits other than 4,853,429 4,417,796 pensions Other 4,763,543 4,999,937 103,078,459 102,620,439 Total Capitalization and $603,333,435 $596,979,740 Liabilities
See accompanying Notes to Financial Statements.
STATEMENT OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, 1997 1996* Operating activities: Net income $3,124,816 $3,646,668 Adjustments to reconcile net income to cash flows: Depreciation and amortization 6,284,845 5,874,596 Pension income (237,501) (177,999) Deferred income taxes, net 209,945 402,451 Investment tax credit, net (62,090) (89,520) Allowance for equity funds used - (143,100) during construction Issuance of common stock for 401(k) 176,738 175,622 plan Other 35,826 13,031 Cash flows impacted by changes in: Accounts receivable and accrued 3,790,070 725,695 unbilled revenues Fuel, materials and supplies 354,557 152,866 Prepaid expenses and deferred (75,420) 230,298 charges Accounts payable and accrued (2,468,161) (2,364,805) liabilities Customer deposits, interest and 6,098,626 5,752,366 taxes accrued Other liabilities and other 436,741 173,080 deferred credits Net cash provided by operating 17,668,992 14,371,249 activities Investing activities: Construction expenditures (15,734,205) (9,865,072) Allowance for equity funds used - 143,100 during construction Net cash used in investing activities (15,734,205) (9,721,972) Financing activities: Proceeds from issuance of common 1,327,233 1,308,189 stock Dividends (5,867,544) (5,476,480) Payment of debt issue costs (11,991) - Net proceeds from short-term 3,500,000 (500,000) borrowings Net cash used in financing activities (1,052,302) (4,668,291) Net increase (decrease) in cash and 882,485 (19,014) cash equivalents Cash and cash equivalents at beginning 2,246,136 3,816,775 of period Cash and cash equivalents at end of $3,128,621 $3,797,761 period
*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, 1996. 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 1997 Balance at January 1, 1997 $51,340,554 Changes January 1 through March 31: Net Income 3,124,816 Quarterly cash dividends on common stock: - $0.32 per share (5,263,459) 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 (2,742,728) Balance at March 31, 1997 $48,597,826
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, 1997, compared to the same periods ended March 31, 1996. Operating Revenues and Kilowatt-Hour Sales Of the Company's total electric operating revenues during the first quarter of 1997, approximately 45% were from residential customers, 28% from commercial customers, 16% from industrial customers, 5% from wholesale on-system customers and 3% from wholesale off-system transactions. The remainder of such revenues were 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 (5.4)% 0.5% (3.1)% 1.5% Commercial (2.7) 2.6 (1.7) 2.7 Industrial 4.1 7.2 4.2 7.4 Net Wholesale 2.5 6.2 (0.2) 8.9 On-System Total System (1.8) 3.2 (0.9) 3.5
Mild temperatures experienced during the first three months of 1997 resulted in a decline in residential and commercial Kwh sales and revenue when compared to the same period in 1996 when temperatures were colder than normal. Industrial Kwh sales and related revenues, which are not as weather-sensitive as residential and commercial sales, were positively affected during the first quarter of 1997 by continuing increases in business activity throughout the Company's service territory, although customer growth has been at a slower rate than during the first three months of 1996. On-system wholesale Kwh sales were up during the first quarter of 1997. Revenues associated with those sales, however, decreased slightly as a result of the operation of the fuel adjustment clause applicable to these FERC regulated sales. This clause permits the pass through to customers of changes in fuel and purchased power costs. For the twelve months ended March 31, 1997, Kwh sales to and revenue from the Company's on-system customers were up over the year earlier period. This increase reflected primarily warmer summer temperatures experienced during the second quarter of 1996 and significantly colder weather during the fourth quarter of 1996. Mild weather conditions during the third quarter of 1996 partially offset these positive impacts. In addition, a full year of the November 1995 Missouri electric rate increase contributed to the increased revenue during the year. On August 30, 1996, the Company filed a request with the Missouri Public Service Commission for a general increase in rates for its Missouri electric customers in the amount of approximately $23,438,000 or 13.8%. A stipulated agreement was filed by the parties to the case on April 4, 1997. The agreement if approved, would allow for, among other things, a revenue increase based on a September 30, 1996 test year, plus a true-up amount through March 31, 1997, that will address changes in rate base and capital structure as well as isolated adjustments for Unit No. 2 at the Company's State Line Plant, if it is declared in service by May 31, 1997. A hearing on the stipulation was held on April 30, 1997, with a hearing on the true-up amount scheduled to begin on May 23, 1997. Under Missouri law, the Commission must act on the Company's request by July 28, 1997. The Company cannot predict the extent of any increase which might be granted as a result of this filing. Off-System Transactions In addition to sales to its own customers, the Company also sells power to other utilities as available and also provides transmission service through its system for transactions between other energy suppliers. During the first quarter of both 1997 and 1996, income from such off-system transactions exceeded related expenses by approximately $0.5 million. For the twelve months ended March 31, 1997, income from such off-system transactions exceeded related expenses by approximately $2.0 million, compared with approximately $1.9 million during the twelve months ended March 31, 1996. The increase in net income from off-system transactions during the twelve-month period 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 1997, total operating expenses were virtually level with total operating expenses during the first quarter of 1996. Purchased power costs were up approximately $1.5 million (13.3%) during the period, primarily due to increased purchases of replacement energy needed during an extended spring maintenance outage at the Asbury Plant. The outage was scheduled for five weeks instead of the normal three to allow for the completion of additional work to repair rotor damage initially discovered during the 1996 Asbury five-year turbine inspection, plus the connection of new fiberglass cooling towers. The Asbury Plant was returned to service on April 16, 1997. Total fuel costs were down approximately $1.9 million (21.5%) during the first quarter of 1997, reflecting primarily a decrease of approximately 75 million Kwh (11.8%) in fuel- generated kilowatt-hours by the Company's plants corresponding to a lower level of customer demand due to the mild weather conditions described above. Fuel costs were also affected by the decreased generation by higher-cost, gas-fired combustion turbine units at the Energy Center and the Riverton Plant, and more favorable fuel prices at the jointly-owned Iatan Plant. Other operating expenses increased approximately $0.4 million (5.9%) during the period, due primarily to higher general and administrative costs and increased customer account expenses. Maintenance and repair expense increased approximately $0.3 million (9.8%) during the quarter, primarily due to the increased expenses associated with the Asbury maintenance outage discussed above and increased maintenance on the Company's transmission system. Depreciation and amortization expenses increased approximately $0.3 million (5.2%) during the quarter due to increased levels of plant and equipment placed in service. Total income taxes declined during the first quarter of 1997 due primarily to lower taxable income during the current period. Other taxes were down approximately $0.1 million (4.8%) during the quarter reflecting primarily decreased franchise taxes relating to lower revenues. During the twelve months ended March 31, 1997, total operating expenses were up approximately $0.9 million (0.9%) compared to the year ago period. Excluding the one-time pre-tax charge of approximately $4.6 million in the third quarter of 1995 relating to the Company's voluntary early retirement program (the "VERP"), total operating expenses increased approximately $5.5 million (5.2%). Total purchased power costs were up approximately $9.6 million (24.3%), primarily due to increased purchases of replacement energy needed during the maintenance outages at the Asbury Plant discussed above. Several forced outages at the Company's low-cost Asbury and jointly-owned Iatan Plants during the third quarter of 1996 also resulted in the Company purchasing greater amounts of replacement energy than it purchased during the same period ending March 31, 1996. Total fuel costs were down approximately $1.5 million (4.4%) during the twelve month period due primarily to the factors discussed for the three months ended March 31, 1997. Other operating expenses decreased approximately $2.6 million (7.8%) during the twelve months ended March 31, 1997, compared to the same period last year (excluding expenses related to the VERP), due primarily to lower general and administrative costs. During the twelve months ended March 31, 1996, the Company's general and administrative costs were higher in large part because of the legal proceeding relating to the complaint filed by Ahlstrom Development Corporation which concluded in November 1995, and the Company's Competitive Positioning Process. Maintenance and repair expenses increased approximately $1.2 million (9.5%) during the period, due primarily to increased maintenance performed on the Company's distribution system. These expenses were higher in part due to approximately $0.7 million in repairs associated with damage from a wind storm which occurred at the end of April 1996, and approximately $0.4 million in repairs associated with damage from an ice storm which occurred at the end of November 1996. Depreciation and amortization expense increased approximately $1.4 million (6.9%) due to increased levels of plant and equipment placed in service. Total provision for income taxes increased due to higher taxable income during the current period. Other taxes were down slightly during the period. Nonoperating Items Total allowance for funds used during construction ("AFUDC") increased during both current periods, reflecting higher levels of construction work in progress, particularly due to the construction of Unit No. 2 at the Company's State Line Plant. Interest income decreased during both current periods, reflecting lower balances of cash available for investment particularly due to increased levels of construction. Interest charges on first mortgage bonds increased in both the periods due to additional issuances of the Company's First Mortgage Bonds. Other interest increased during the twelve months ending March 31, 1997, primarily due to increased usage of short-term debt to finance the Company's construction program. Earnings For the first quarter of 1997, earnings per share of common stock were $0.15 compared to $0.20 earned during the first quarter of 1996. Earnings per share were down primarily due to decreased revenues resulting from mild weather conditions, the increase in operating and maintenance expenses discussed above and increased first mortgage bond interest. Earnings per share also reflect increased levels of AFUDC and a greater number of shares outstanding because of the Company's issuance of 880,000 shares of common stock in April 1996. Earnings per common share for the twelve months ended March 31, 1997, were $1.17 compared to $1.09 earned during the same period last year (after giving effect to the one-time charge related to the VERP, which reduced earnings for the twelve months ended March 31, 1996 by approximately $0.19 per share). Increased revenue resulting from weather conditions favorable to Kwh sales and the 1995 Missouri rate increase was partially offset by the increase in expenses discussed above, particularly increases in purchased power expenses and distribution maintenance expenses. Earnings per share for the twelve months ended March 31, 1997, also reflect a greater number of shares outstanding because of the Company's issuance of 880,000 shares of common stock in April 1996. The Company believes that adequate rate relief as a result of its Missouri rate case described above will be necessary to offset increased purchased power and other expenses, and to improve its earnings. LIQUIDITY AND CAPITAL RESOURCES The Company's construction-related expenditures totaled $15.7 million during the first quarter of 1997, compared to $9.9 million for the same period in 1996. Approximately $2.9 million of construction expenditures during the first quarter were related to the construction of Unit No. 2 at the State Line Power Plant, which is currently scheduled to be placed in service by May 31, 1997. During the first quarter of 1997, approximately 75% 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 $55.3 million in 1997, including approximately $22.2 million for additions to the Company's distribution system to meet projected increases in customer demand and approximately $11.9 million for the completion of Unit No. 2 at the State Line Power Plant. The Company currently estimates that internally generated funds will provide at least 75% of the funds required for the remainder of its 1997 construction expenditures. As in the past, the Company intends to utilize short-term debt to finance the additional amounts needed for such construction and to repay such borrowings with internally generated funds and out of 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. The Company will continue to utilize short-term debt as needed to support normal operations or other temporary requirements. FORWARD LOOKING STATEMENTS Certain matters discussed in this quarterly report are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Such statements address future plans, objectives, expectations and events or conditions concerning various matters such as capital expenditures, earnings, rate and other regulatory matters, liquidity and capital resources, and accounting matters. Actual results in each case could differ materially from those currently anticipated in such statements, by reason of factors such as the cost and availability of purchased power and fuel; the outcome of the Company's pending electric rate case in Missouri; electric utility restructuring, including ongoing state and federal activities; future economic conditions; legislation; regulation; competition; and other circumstances affecting anticipated rates, revenues and costs. 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 24, 1997. (b) The following persons were re-elected Directors of the Company to serve until the 2000 Annual Meeting of Stockholders: R. D. Hammons (12,910,996 votes for; 205,779 withheld authority). J. R. Herschend (12,907,491 votes for; 209,284 withheld authority). M. W. McKinney (12,961,522 votes for; 155,253 withheld authority). M. M. Posner (12,954,521 votes for; 162,254 withheld authority). The term of office as Director of the following other Directors continued after the meeting: V. E. Brill, M. F. Chubb, Jr., R. C. Hartley, F. E. Jeffries, R. L. Lamb and R. E. Mayes. No other matters were acted on by the shareholders at the meeting. Item 5. Other Information. At March 31, 1997, the Company's ratio of earnings to fixed charges, and ratio of earnings to fixed charges and preferred stock dividend requirements, were 2.99x and 2.45x, 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, 1997. (b) No reports on Form 8-K were filed during the first quarter of 1997. 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 9, 1997 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, 1997 Income before provision for income taxes and $49,136,803 fixed charges (Note A) Fixed charges: Interest on first mortgage bonds $14,461,254 Amortization of debt discount and expense less 872,775 premium Interest on short-term debt 623,279 Other interest 307,836 Rental expense representative of an interest 143,931 factor (Note B) Total fixed charges 16,409,075 Preferred stock dividend requirements: Preferred stock dividend requirements not 2,338,304 deductible for tax purposes Ratio of income before provision for incomes 1.520 taxes to net income Nondeductible dividend requirements 3,554,222 Deductible dividends 78,036 Total preferred stock dividend requirements 3,632,258 Total combined fixed charges and preferred stock $20,041,333 dividend requirements Ratio of earnings to fixed charges 2.99x Ratio of earnings to combined fixed charges and preferred stock dividend requirements 2.45x
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, 1997 AND THE STATEMENT OF INCOME AND THE STATEMENT OF CASH FLOWS FOR THE TWELVE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1997 MAR-31-1997 PER-BOOK 525,049,085 0 36,297,127 41,987,223 0 603,333,435 16,511,329 146,742,812 48,597,826 211,851,967 0 32,901,800 219,537,643 0 0 11,000,000 0 0 0 0 128,042,025 603,333,435 47,304,767 1,515,833 38,715,503 40,231,336 7,073,431 (97,698) 6,975,733 3,850,917 3,124,816 604,085 2,520,731 5,263,459 4,148,202 17,668,992 0.15 0.15
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