-----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, ELoAbQVd+mgiqQqDbzssYCLjn+WmI0kurK1eJAeok/sVGXcxpKCyOZ47CzL2keE1 YqTrfK34DUUKRaljzdazFg== 0000950135-96-001035.txt : 19960216 0000950135-96-001035.hdr.sgml : 19960216 ACCESSION NUMBER: 0000950135-96-001035 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960214 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: 96519020 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 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, 1995 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 31,1995 ------------------------------------------------------------------------- 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, 1995 and September 30, 1995 1 Consolidated Condensed Statements of Income - Three Months Ended December 31, 1995 and 1994 2 Consolidated Statments of Cash Flows - Three Months Ended December 31, 1995 and 1994 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, 1995 1995 ------------ ------------- ASSETS ------ Gas Plant, at original cost $54,063,863 $52,770,211 less accumulated depreciation 16,693,552 16,561,747 ----------- ----------- 37,370,311 36,208,464 ----------- ----------- Rental Property 4,918,576 4,852,644 less accumulated depreciation 2,238,159 2,239,952 ----------- ----------- 2,680,417 2,612,692 ----------- ----------- Other Investments 342,674 320,354 ----------- ----------- Current Assets: Cash 209,365 112,124 Interest-bearing deposits 266,685 203,185 Special deposits 142,000 170,700 Accounts receivable, less allowance for doubtful accounts of $917,216 as of 12/31/95 and $953,365 as of 9/30/95 5,503,736 2,159,172 Inventories, at average cost Merchandise 138,404 203,597 Liquefied natural gas and propane 2,544,176 2,754,655 Materials and Supplies 1,173,917 1,182,645 Purchased gas costs deferred 3,347,547 2,808,882 Prepayments 243,461 18,947 ----------- ----------- 13,569,291 9,613,907 ----------- ----------- Deferred Charges: Installation costs on leased appliances being amortized over twenty years 1,202,366 1,216,877 Regulatory Asset 527,025 527,025 Other 278,408 457,189 ----------- ----------- 2,007,799 2,201,091 ----------- ----------- $55,970,492 $50,956,508 =========== =========== 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 12/31/95 and 9/30/95) 11,243,258 11,149,260 ----------- ----------- 14,433,746 14,339,748 Less Treasury stock, at cost (420,792 shares as of 12/31/95) 1,418,743 1,418,743 ----------- ----------- 13,015,003 12,921,005 ----------- ----------- Long-term debt, less current sinking fund requirements First Mortgage Bonds--9.44% due 2020 6,500,000 6,500,000 ----------- ----------- 6,500,000 6,500,000 ----------- ----------- Total capitalization 19,515,003 19,421,005 ----------- ----------- CURRENT LIABILITIES: Current sinking fund requirements 800,000 880,000 Notes payable to banks 19,600,000 15,600,000 Accounts Payable 5,761,667 3,585,300 Gas supplier refunds due customers 965,664 1,367,969 Accrued taxes 293,472 838,618 Other 1,636,978 1,893,347 ----------- ----------- 29,057,781 24,165,234 ----------- ----------- DEFERRED CREDITS: Accumulated deferred income taxes 3,905,118 3,905,118 Unamortized investment tax credits 596,164 605,653 Regulatory liability 1,027,113 1,027,113 Other 1,869,313 1,832,385 ----------- ----------- 7,397,708 7,370,269 ----------- ----------- $55,970,492 $50,956,508 =========== ===========
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 -------------------------- 1995 1994 ---------- ----------- GAS OPERATING REVENUES 11,454,602 9,989,787 ---------- ---------- OPERATING EXPENSES Cost of gas sold 7,198,222 6,076,718 Other operation 2,850,678 2,304,353 Maintenance 524,765 583,128 Depreciation 358,480 330,946 General taxes 246,341 232,678 Federal income taxes (61,323) 32,907 ---------- ---------- Total operating expenses 11,117,163 9,560,730 ---------- ---------- OPERATING INCOME 337,439 429,057 OTHER INCOME: Net income of Fall River Gas Appliance Company, Inc. (a wholly-owned subsidiary) 187,783 170,026 Other (73) 4,125 ---------- ---------- GROSS INCOME 525,149 603,208 ---------- ---------- INTEREST EXPENSE AND OTHER: Interest on long-term debt 172,650 176,150 Other interest 258,500 164,477 ---------- ---------- 431,150 340,627 ---------- ---------- NET INCOME 93,999 262,581 RETAINED EARNINGS - BEGINNING OF PERIOD 11,149,260 11,242,375 DEDUCT - Dividends declared 0 0 ---------- ---------- RETAINED EARNINGS - END OF PERIOD ($4,374,576 restricted against payment of cash dividends as of 12/31/95 and 12/31/94) 11,243,259 11,504,956 ========== ========== NET INCOME PER SHARE OF COMMON STOCK (based on average number of shares outstanding at the end of the respective periods) 0.05 0.15 ========== ========== 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 condensed financial statements. 2 5 FALL RIVER GAS COMPANY AND SUBSIDIARY ------------------------------------------------ CONSOLIDATED STATEMENT OF CASH FLOWS ------------------------------------------------
Three Months Ended December 31 ----------------------------------- 1995 1994 ----------- ----------- Cash Provided by (used for) Operating Activities: Net income $ 93,998 $ 262,582 Items not requiring (providing) cash: Depreciation 429,785 417,645 Amortization of Installation Costs 31,839 27,663 Amortization of Investment Tax Credit (9,489) (9,511) Change in working capital (2,822,096) (2,364,641) Other sources, net 102,818 (123,472) ----------- ----------- Net cash provided by operating activities (2,173,145) (1,789,734) ----------- ----------- Investing Activities: Additions to utility property, plant and equipment (1,451,260) (1,028,933) Additions to nonutility property (134,854) (208,757) ----------- ----------- Net cash used by investing activities (1,586,114) (1,237,690) ----------- ----------- Financing activities: Cash dividends on common stock 0 0 Retirement of long-term debt through sinking fund (80,000) (80,000) Increase in notes payable to banks, net 4,000,000 3,500,000 ----------- ----------- Net cash provided by financing activities 3,920,000 3,420,000 ----------- ----------- Increase in cash $ 160,741 $ 392,576 =========== =========== Changes in Components of Working Capital (excluding cash) (Increase) decrease in current assets: Accounts receivable $(3,344,564) $(2,038,957) Inventories 284,400 (340,464) Prepayments and other (195,814) (177,818) Deferred gas cost (538,665) (823,931) Increase (decrease) in current liabilities: Accounts payable 2,176,367 (111,821) Accrued taxes (545,146) 175,110 Gas supplier refunds due customers (402,305) 1,164,017 Other (256,369) (210,777) ----------- ----------- Change in Working Capital $(2,822,096) $(2,364,641) =========== =========== Supplemental disclosure of cash flow information: Cash paid during year for: Interest $ 331,404 $ 284,816 Income taxes $ 590,000 $ 70,000
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, 1995 reflect an increase of 14.6% or $1,465,000. Revenues increased from $9,990,000 recorded in 1994 to $11,455,000, mainly due to a 15.7% increase in firm sales volume. Firm sales volume for three months ended December 31, 1995 is 1,423,974 MCF as compared to the 1,230,332 MCF reported in 1994. Along with the rise of firm sales, total sales for the three month period which include Special Contract, Interruptible, and Transportation customers, increased 13.4% from 1,597,768 MCF to 1,812,206 MCF in 1995. During the quarter cost of gas (CGA) revenues increased by $104,000 due to the net differences in our CGA decimal in the three months ended December 1995 and 1994 respectively. In accordance with the Company's approved CGAC increases or decreases in the cost of gas sold continue to be passed directly to our Firm customers, dollar for dollar. Colder weather is a large factor in the increase of operating revenues and firm sales volume. Degree Days in the three month comparison increased 14.8% from 1,802 to 2,070. Total operating expenses, excluding federal and state income taxes, for the three month comparisons reflected a 17.5% increase from $9,519,000 to $11,189,000 an increase of $1,670,000. The most significant operation expense - cost of gas sold - increased by $1,122,000 for the three month comparison due to the increase in Firm sales volume discussed above. Other operation expenses including health benefits, payroll, and materials and supplies have increased by $546,000, 23.7% higher than the comparable period in 1994. Interest expense increased by $91,000, 26.5%, for the three month comparison as a result of increased borrowing and higher short term interest cost. 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, 1995, capital expenditures totalled approximately $1,500,000. 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. 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, 1995 and 1994 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, 1995 and 1994, and the results of operations for the three months ended and changes in financial position for the three months then ended. 3. The Company had no shares of its common stock reserved for officers and employees, options, warrants, conversions or other requirements at December 31, 1995. PART II. OTHER INFORMATION Not applicable. 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. FALL RIVER GAS COMPANY ---------------------- (Registrant) Peter H. Thanas ---------------------- (Signature) Date January 31, 1996 Peter H. Thanas, Treasurer, ----------------- Chief Financial and Accounting Officer 5 EX-27 2 FINANCIAL DATA SCHEDULE
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET, INCOME STATEMENT, AND CASH FLOW STATEMENT FOR THE 3 MONTHS ENDED DECEMBER 31, 1995. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS APPEARING ON PAGE 5 OF FORM 10-Q FOR 3 MONTHS ENDED DECEMBER 31, 1995. U.S. DOLLARS 3-MOS SEP-30-1996 OCT-01-1995 DEC-31-1995 1 PER-BOOK 37,370,311 3,023,091 13,569,291 2,007,799 0 55,970,492 1,834,445 1,356,043 11,243,258 14,433,746 0 0 6,500,000 19,600,000 0 0 800,000 0 0 0 14,636,746 55,970,492 11,454,602 185,018 10,932,145 11,117,163 337,439 187,710 525,149 431,150 93,999 0 6,868,683 0 0 (2,173,145) .05 .05
-----END PRIVACY-ENHANCED MESSAGE-----