-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, qYvVkCjF+tOkIXCD7fX2yzR31aZmVRSnvE6qVXFnNx+88U+H/Hm9NwTo/1UfKmIS yb238iqx/6GG4D2Wzr9rWA== 0000950135-95-000233.txt : 19950215 0000950135-95-000233.hdr.sgml : 19950215 ACCESSION NUMBER: 0000950135-95-000233 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950214 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FALL RIVER GAS CO CENTRAL INDEX KEY: 0000034371 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 041298780 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-00449 FILM NUMBER: 95510655 BUSINESS ADDRESS: STREET 1: 155 N MAIN ST STREET 2: P O BOX 911 CITY: FALL RIVER STATE: MA ZIP: 02722-0911 BUSINESS PHONE: 5086757811 MAIL ADDRESS: STREET 2: 155 NO MAIN ST CITY: FALL RIVER STATE: MA ZIP: 02720 10-Q 1 FORM 10-Q FOR FALL RIVER GAS COMPANY 1 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 Quarter Ended December 31, 1994 Commission file number 0-449 ------------------------------------------------------------------ FALL RIVER GAS COMPANY ------------------------------------------------------------------ (Exact name of registrant as specified in its charter) Massachusetts 04-1298780 ------------------------------------------------------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Indentification No.) 155 North Main Street, Fall River, Massachusetts 02722 ------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 508-675-7811 ------------------------------------------------------------------ "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 ." --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. Class Outstanding at December 31,1994 ------------------------------------------------------------------ Common stock,par value of $.83 1\3 1,780,542 shares 2 FALL RIVER GAS COMPANY ---------------------- INDEX ----- Page No. -------- Part. I. Financial Position Consolidated Condensed Balance Sheets - December 31, 1994 and September 30, 1994 1 Consolidated Condensed Statements of Income - Three Months Ended December 31, 1994 and 1993 2 Consolidated Statments of Cash Flows - Three Months Ended December 31, 1994 and 1993 3 Management's discussion and Analysis of the Consolidated Condensed Statements of Income 4 Notes to Consolidated Condensed Financial Statements 5 Part II. Other Information 5 3 PART I. FINANCIAL INFORMATION ----------------------------- FALL RIVER GAS COMPANY AND SUBSIDIARY ------------------------------------- CONSOLIDATED CONDENSED BALANCE SHEETS -------------------------------------
DECEMBER 31, SEPTEMBER 30, ASSETS 1994 1994 ------ ------------- ------------- Gas Plant, at original cost $ 49,886,911 $ 48,902,815 less accumulated depreciation 15,933,417 15,689,848 ------------- ------------ 33,953,494 33,212,967 ------------- ------------ Rental Property 4,768,231 4,688,718 less accumulated depreciation 2,315,266 2,361,987 ------------- ------------ 2,452,965 2,326,731 Other Investments 257,345 241,239 Current Assets: ------------ ------------ Cash 93,698 84,798 Interest-bearing deposits 659,696 276,020 Special deposits 170,700 170,700 Accounts receivable, less allowance for doubtful accounts of $953,365 as of 12/31/94 and $701,734 as of 9/30/94 4,690,963 2,652,006 Inventories, at average cost Merchandise 108,903 169,279 Liquefied natural gas and propane 3,217,539 2,906,790 Materials and Supplies 1,117,481 1,027,390 Purchased gas costs deferred 5,420,750 4,596,819 Prepayments 203,006 25,188 ------------ ------------ 15,682,736 11,908,990 ------------ ------------ Deferred Charges: Installation costs on leased appliances being amortized over twenty years 1,212,188 1,128,313 Regulatory Asset 343,290 343,290 Other 444,554 464,312 ------------ ------------ 2,000,032 1,935,915 ------------ ------------ $ 54,346,572 $ 49,625,842 ============ ============ STOCKHOLDERS' INVESTMENT AND LIABILITIES ---------------------------------------- CAPITALIZATION: Stockholders' investment-- Common stock, par value $.83-1/3 per share, 2,201,334 shares authorized and issued $ 1,834,445 $ 1,834,445 Premium paid in on common stock 1,356,043 1,356,043 Retained earnings ($4,374,576 restricted against payment of cash dividends as of 12/31/94 and 9/30/94) 11,504,957 11,242,375 ------------ ------------ 14,695,445 14,432,863 Less Treasury stock, at cost (420,792 shares as of 12/31/94 1,418,743 1,418,743 ------------ ------------ 13,276,702 13,014,120 ------------ ------------ Long-term debt, less current sinking fund requirements First Mortgage Bonds--8-3/4% Series due 1996 800,000 880,000 --9.44% due 2020 6,500,000 6,500,000 ------------ ------------ 7,300,000 7,380,000 ------------ ------------ Total capitalization 20,576,702 20,394,120 ------------ ------------ CURRENT LIABILITIES: Current sinking fund requirement 160,000 160,000 Notes payable to banks 17,900,000 14,400,000 Accounts Payable 3,162,011 3,273,832 Gas supplier refunds due customers 2,294,620 1,130,603 Accrued taxes 1,674,343 1,499,233 Other 1,744,591 1,955,368 ------------ ------------ 26,935,565 22,419,036 ------------ ------------ DEFERRED CREDITS: Accumulated deferred income taxes 3,630,933 3,630,933 Unamortized investment tax credits 634,191 643,702 Regulatory Liability 843,378 843,378 Other 1,725,803 1,694,673 ------------ ------------ 6,834,305 6,812,686 ------------ ------------ $ 54,346,572 $ 49,625,842 ============ ============
See accompanying notes to consolidated financial statements. 1 4 SUMMARIZED FINANCIAL INFORMATION -------------------------------- FALL RIVER GAS COMPANY AND SUBSIDIARY ------------------------------------- CONSOLIDATED CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS -----------------------------------------------------------------
Three Months Ended December 31 ------------------------------- 1994 1993 ---- ---- GAS OPERATING EXPENSES 9,989,787 11,196,082 ------------ ------------ OPERATING EXPENSES Cost of gas sold 6,076,718 6,972,138 Other operation 2,304,353 2,299,296 Maintenance 583,128 460,718 Depreciation 330,946 295,792 General taxes 232,678 272,238 Federal income taxes 32,907 200,312 ------------ ------------ Total operating expenses 9,560,730 10,500,494 ------------ ------------ OPERATING INCOME: 429,057 695,588 OTHER INCOME: Net income of Fall River Gas Appliance Company, Inc. (a wholly-owned subsidiary) 170,026 187,059 Other 4,125 2,675 ------------ ------------ GROSS INCOME 603,208 885,322 ------------ ------------ INTEREST EXPENSE AND OTHER: Interest on long-term debt 176,150 179,212 Other interest 164,477 102,642 ------------ ------------ 340,627 281,854 ------------ ------------ NET INCOME 262,581 603,468 RETAINED EARNINGS - BEGINNING OF PERIOD 11,242,375 10,496,206 DEDUCT - Dividends declared 0 0 ------------ ------------ RETAINED EARNINGS - END OF PERIOD ($4,374,576 restricted against payment of cash dividends as of 12/31/94 and 12/31/93) 11,504,956 11,099,674 ============ ============ NET INCOME PER SHARE OF COMMON STOCK (based on average number of shares outstanding at the end of the respective periods) 0.15 0.34 ============ ============ WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING DURING THE PERIOD 1,780,542 1,780,542 CASH DIVIDEND PER COMMON SHARE 0 0 ============ ============
See accompanying notes to consolidated financial statements. 2 5 FALL RIVER GAS COMPANY AND SUBSIDIARY ------------------------------------------- CONSOLIDATED STATEMENT OF CASH FLOWS -------------------------------------------
Three Months Ended December 31 ------------------------------- 1994 1993 ---- ---- Cash Provided by (used for) Operating Activities: Net Income $262,582 $603,468 Items not requiring (providing) cash: Depreciation 417,645 362,784 Amoritization of Installation Costs 27,663 26,289 Amoritization of Investment Tax Credit (9,511) (9,612) Change in working capital (2,364,641) 886,869 Other sources, net (123,472) (250,945) ------------ ------------ Net cash provided by operating activities (1,789,734) 1,618,853 ------------ ------------ Investing Activities Additions to utility property, plant and equipment (1,028,933) (918,934) Additions to nonutility property (208,757) (155,402) ------------ ------------ Net cash used by investing activities (1,237,690) (1,074,336) ------------ ------------ Financing activities: Cash dividends on common stock 0 0 Retirement of long-term debt through sinking fund (80,000) (80,000) Increase, (Decrease) in notes payable to banks, net 3,500,000 (380,000) ------------ ------------ Increase in cash $392,576 $164,517 ============ ============ Changes in Components of Working Capital (excluding cash) (Increase) decrease in current assets: Accounts receivable ($2,038,957) ($2,834,460) Inventories (340,464) 368,386 Prepayments and other (177,818) (222,411) Deferred gas cost (823,931) (927,604) Increase (decrease) in current liabilities: Accounts payable (111,821) 2,930,961 Accrued Taxes 175,110 964,832 Gas supplier refunds due customers 1,164,017 814,766 Other (210,777) (207,501) ------------ ------------ Change in Working Capital ($2,364,641) $886,869 ============ ============ Supplemental disclosure of cash flow information: Cash paid during year for: Interest $284,816 $156,680 Income Taxes $70,000 $0
See accompanying notes to consolidated condensed financial statements. 3 6 FALL RIVER GAS COMPANY AND SUBSIDIARY MANAGEMENT'S DISCUSSION AND ANALYSIS Results of Operations Gas Operating revenues for the three months ended December 31, 1994 decreased $1,206,000 to $9,990,000, 10.7% lower than the $11,196,000 recorded for the comparable period in 1993. During the quarter cost of gas (CGA) revenues increased by $22,000 due to the net differences in our CGA decimal in the three months ended December 1994 and 1993 respectively. Increases or decreases in the cost of gas sold continue to be passed on to our firm customers, dollar for dollar, in accordance with the Company's approved CGA. In addition to the decrease in operating revenues due to the CGA decimal was a decrease in firm sales volume due to warmer weather in the quarter comparisons. Degree days in the quarter comparisons decreased from 2,005 in 1993 to 1,802 in 1994, 1,230,000 in 1994, a reduction of 19.6%. Total operating expenses, excluding state and federal income taxes, decreased $738,000 to $9,519,000, 7.2% lower than the comparable period in 1993. The most significant operating expense - cost of gas sold - decreased by $895,000, 12.8%, to $6,077,000 due to decreased costs billed to our firm customers, in addition to decreased MCF sales as discussed above. Increases in health benefits, payroll, and materials and supplies have increased the cost of other operations by $5,000, .2%, to $2,304,000. Interest expense increased to $341,000, $59,000 and 20.8% higher than the comparable figure in 1993. This is the result of higher short term interest rates while short term borrowing increased to $17,900,000 as of December 31, 1994 compared to $14,700,000 as of December 31, 1993. Capital Resources and Liquidity The Company's major capital requirement results from upgrading the efficiency of existing plant as well as to serve additional customers. For the three months ended December 31, 1994, capital expenditures totaled approximately $1,200,000. Cash flow patterns reflect the seasonality of the Company's business. The greatest demand for cash is in the late fall and winter as construction projects are brought to completion and accounts receivable balances rise. Capital expenditures and accounts receivable balances were financed by internally generated funds and supplemented by short-term borrowings. At December 31, 1994, the Company had available unsecured bank lines of credit of $6,600,000. See accompanying notes to consolidated financial statements. 4 7 FALL RIVER GAS COMPANY AND SUBSIDIARY ------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------ 1. The results of operation for the three month periods ending December 31, 1994 and 1993 are not necessarily indicative of the results to be expected for the full year. 2. In the opinion of the Company, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Company's financial position as of December 31, 1994 and 1993, and the results of operations for the three months ended and changes in financial position for the three months then eneded. 3. The Company had no shares of its common stock reserved for officers and employees, options, warrants, conversions or other requirements at December 31, 1994. PART II. OTHER INFORMATION --------------------------- Not applicable. SIGNATURES ---------- Pursuant to the requirments 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. FALL RIVER GAS COMPANY ------------------------------ (Registrant) Peter H. Thanas ------------------------------ (Signature) Date February 10, 1995 Peter H. Thanas, Treasurer, ----------------- Chief Financial and Accounting Officer 5 EX-27 2 FDS FOR THREE MONTHS ENDED DECEMBER 31, 1994
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED CONDENSED FINANCIAL STATEMENTS OF FALL RIVER GAS COMPANY FOR THE THREE MONTHS ENDED DECEMBER 31, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1 U.S. DOLLARS 3-MOS SEP-30-1995 OCT-1-1994 DEC-31-1994 1 PER-BOOK 33,953,494 2,710,310 15,682,736 2,000,032 0 54,346,572 1,834,445 1,356,043 11,504,957 14,695,445 0 0 7,300,000 17,900,000 0 0 160,000 0 0 0 15,709,870 54,346,572 9,989,787 265,585 9,295,145 9,560,730 429,057 174,151 608,208 340,627 262,581 0 7,130,380 0 0 (1,789,734) .15 .15
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