-----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, SDSkcc71kDBAldvYLuoOamn4HmHBoyJdOvvh4/YcCdZGCSoMvOws0+F216N+sBL/ oP/ft4T+iO5bcdfk3nWolw== 0000787250-96-000006.txt : 19960816 0000787250-96-000006.hdr.sgml : 19960816 ACCESSION NUMBER: 0000787250-96-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DPL INC CENTRAL INDEX KEY: 0000787250 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 311163136 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09052 FILM NUMBER: 96613715 BUSINESS ADDRESS: STREET 1: PO BOX 8825 CITY: DAYTON STATE: OH ZIP: 45401 BUSINESS PHONE: 5132246000 MAIL ADDRESS: STREET 1: PO BOX 8825 CITY: DAYTON STATE: OH ZIP: 45401 10-Q 1 DPL INC. 10Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 1-9052 DPL INC. (Exact name of registrant as specified in its charter) OHIO 31-1163136 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Courthouse Plaza Southwest Dayton, Ohio 45402 (Address of principal executive offices) (513) 224-6000 (Registrant's telephone number, including area code) 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 of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $.01 par value and Preferred Share Purchase Rights 106,009,923 Shares ----------------------------------- ------------------ (Title of each class) (Outstanding at June 30, 1996) DPL INC. INDEX Page No. -------- Part I - Financial Information Item 1. Financial Statements Consolidated Statement of Results of Operations 1 Consolidated Statement of Cash Flows 2 Consolidated Balance Sheet 3 Notes to Consolidated Financial Statements 5 Operating Statistics 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II - Other Information 10 Signatures 11 i CONSOLIDATED STATEMENT OF RESULTS OF OPERATIONS DPL INC. Three Months Six Months Ended Ended June 30 June 30 ------------- ------------- 1996 1995 1996 1995 ---- ---- ---- ---- --thousands-- --thousands-- Income - ------ Utility service revenues $281,401 $265,895 $649,822 $621,462 Interest and other income 8,451 7,213 14,828 13,510 -------- -------- -------- -------- Total Income 289,852 273,108 664,650 634,972 -------- -------- -------- -------- Expenses - -------- Fuel and purchased power 54,615 59,554 116,239 123,701 Gas purchased for resale 19,461 17,614 84,020 80,633 Operation and maintenance 68,551 55,957 124,663 107,461 Depreciation and amortization 32,272 29,050 62,660 57,946 Amortization of regulatory assets, net 3,402 2,794 7,461 5,519 General taxes 32,078 31,006 64,390 62,267 Interest expense 22,114 23,204 44,144 46,338 Preferred dividend requirements of The Dayton Power and Light Company 217 217 434 434 -------- -------- -------- -------- Total Expenses 232,710 219,396 504,011 484,299 -------- -------- -------- -------- Income Before Income Taxes 57,142 53,712 160,639 150,673 Income Taxes 22,293 19,111 61,964 55,259 -------- -------- -------- -------- Net Income $ 34,849 $ 34,601 $ 98,675 $ 95,414 ======== ======== ======== ======== Average Number of Common Shares Outstanding (thousands) 100,569 101,130 100,765 101,093 Earnings Per Share of Common Stock $ 0.35 $ 0.34 $ 0.98 $ 0.94 Dividends Paid Per Share of Common Stock $ 0.325 $ 0.31 $ 0.65 $ 0.62 Set Notes to Consolidated Financial Statements. These interim statements are unaudited. -1- CONSOLIDATED STATEMENT OF CASH FLOWS DPL INC. Six Months Ended June 30 ---------------- 1996 1995 ---- ---- --thousands-- Operating Activities - -------------------- Cash received from utility customers $653,185 $641,539 Other operating cash receipts 13,555 16,799 Cash paid for: Fuel and purchased power (108,065) (120,023) Purchased gas (95,027) (74,315) Operation and maintenance labor (43,786) (45,607) Nonlabor operating expenditures (74,866) (73,599) Interest (43,514) (43,125) Income taxes (42,804) (42,804) Property, excise and payroll taxes (72,371) (71,548) -------- -------- Net cash provided by operating activities 186,307 187,317 -------- -------- Investing Activities - -------------------- Property expenditures (41,937) (44,702) Other activities (177,026) (5,608) -------- -------- Net cash used for investing activities (218,963) (50,310) -------- -------- Financing Activities - -------------------- Dividends paid on common stock (65,982) (62,664) Retirement of long-term debt (50) (3,145) Purchase of treasury stock (15,803) - -------- -------- Net cash used for financing activities (81,835) (65,809) -------- -------- Cash and temporary cash investments-- - ----------------------------------- Net change (114,491) 71,198 Balance at beginning of period 150,371 95,566 -------- -------- Balance at end of period $ 35,880 $166,764 ======== ======== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -2- CONSOLIDATED BALANCE SHEET DPL INC. At At June 30, December 31, 1996 1995 -------- ------------ --thousands-- ASSETS - ------ Property - -------- Utility property $3,372,921 $3,370,697 Other property 36,220 55,427 Construction work in progress 65,289 23,496 ---------- ---------- 3,474,430 3,449,620 Less-- Accumulated depreciation and amortization (1,218,135) (1,167,779) ---------- ---------- Net property 2,256,295 2,281,841 ---------- ---------- Current Assets - -------------- Cash and temporary cash investments 35,880 150,371 Accounts receivable, less provision for uncollectible accounts 144,965 147,998 Inventories, at average cost 63,842 82,700 Taxes applicable to subsequent years 77,086 82,371 Other current assets 46,500 39,784 ---------- ---------- Total current assets 368,273 503,224 ---------- ---------- Other Assets - ------------ Income taxes recoverable through future revenues 232,675 238,632 Regulatory assets 147,195 155,715 Financial assets 164,666 27,191 Other assets 118,728 116,152 ---------- ---------- Total other assets 663,264 537,690 ---------- ---------- Total Assets $3,287,832 $3,322,755 ========== ========== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -3- CONSOLIDATED BALANCE SHEET (continued) DPL INC. At At June 30, December 31, 1996 1995 -------- ------------ --thousands-- CAPITALIZATION AND LIABILITIES - ------------------------------ Capitalization - -------------- Common shareholders' equity-- Common stock $ 1,060 $ 1,067 Other paid-in capital 756,232 771,414 Common stock held by employee plans (106,093) (107,228) Earnings reinvested in the business 499,248 499,533 Total common shareholders' equity 1,150,447 1,164,786 Preferred stock 22,851 22,851 Long-term debt 1,040,632 1,081,591 ---------- ---------- Total capitalization 2,213,930 2,269,228 ---------- ---------- Current Liabilities - ------------------- Accounts payable 66,939 96,982 Accrued taxes 112,045 119,398 Accrued interest 24,869 24,929 Current portion of long-term debt 41,400 450 Other 50,549 43,071 ---------- ---------- Total current liabilities 295,802 284,830 ---------- ---------- Deferred Credits and Other - -------------------------- Deferred taxes 505,406 516,292 Unamortized investment tax credit 76,902 79,646 Other 195,792 172,759 ---------- ---------- Total deferred credits and other 778,100 768,697 ---------- ---------- Total Capitalization and Liabilities $3,287,832 $3,322,755 ========== ========== See Notes to Consolidated Financial Statements. These interim statements are unaudited. -4- Notes to Consolidated Financial Statements 1. Reconciliation of Net Income to Net Cash Provided by Operating Activities: Six Months Ended June 30 1996 1995 ---- ---- --millions-- Net Income $ 98.7 $ 95.4 Adjustments for non-cash items: Depreciation and amortization 62.7 57.9 Changes in working capital: Accounts receivable 5.8 28.7 Accounts payable (26.3) (21.9) Other 19.5 30.7 Other operating activities 25.9 (3.5) ------ ------ Net cash provided by operating activities $186.3 $187.3 ====== ====== 2. Reclassifications have been made in certain prior years' amounts to conform to the current reporting presentation of DPL Inc. 3. The consolidated financial statements in this report have been prepared by DPL Inc., without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in DPL Inc.'s 1995 Annual Report on Form 10-K. The information included in this Form 10-Q reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results of operations for the periods presented. Any adjustments are of a normal recurring nature. -5- OPERATING STATISTICS The Dayton Power and Light Company Three Months Six Months Ended Ended June 30 June 30 ------------- ------------- 1996 1995 1996 1995 ---- ---- ---- ---- Electric - -------- Sales (millions of kWh)-- Residential 1,032 924 2,530 2,271 Commercial* 881 769 1,713 1,541 Industrial* 1,122 1,168 2,185 2,264 Other 750 1,028 1,696 2,048 ------- ------- ------- ------- Total 3,785 3,889 8,124 8,124 Revenues (thousands of dollars)-- Residential 94,967 84,672 214,317 194,981 Commercial* 63,052 54,930 119,865 108,767 Industrial* 55,501 59,530 108,929 115,575 Other 32,043 35,712 67,076 71,596 ------- ------- ------- ------- Total 245,563 234,844 510,187 490,919 Other Electric Statistics-- Average price per kWh--retail and wholesale customers (cents) 6.41 5.97 6.21 5.98 Fuel cost per net kWh generated (cents) 1.24 1.31 1.26 1.33 Electric customers at end of period 476,822 472,394 476,822 472,394 Average kWh use per residential customer 2,420 2,188 5,938 5,381 Peak demand-maximum one hour use (mw), (net) 2,641 2,704 2,668 2,704 *Includes the effect of reclassifying certain industrial customers as commercial customers in the fourth quarter of 1995. -6- OPERATING STATISTICS (continued) The Dayton Power and Light Company Three Months Six Months Ended Ended June 30 June 30 ------------- ------------- 1996 1995 1996 1995 ---- ---- ---- ---- Gas - --- Sales (millions of mcf)-- Residential 4,284 3,617 18,997 16,388 Commercial 1,242 999 5,689 4,544 Industrial 739 423 2,585 1,648 Other 410 546 1,718 1,742 Transportation gas delivered 3,623 3,521 9,274 8,974 ------- ------- ------- ------- Total 10,298 9,106 38,263 33,296 Revenues (thousands of dollars)-- Residential 22,793 19,833 89,703 85,305 Commercial 5,964 4,930 25,092 22,274 Industrial 2,951 1,692 10,210 7,531 Other 4,108 4,186 13,326 12,718 ------- ------- ------- ------- Total 35,816 30,641 138,331 127,828 Other Gas Statistics-- Average price mcf-retail customers (dollars) 5.00 5.10 4.55 5.05 Gas customers at end of period 295,351 291,326 295,351 291,326 Degree Days (based on calendar month)-- Heating 723 607 3,920 3,438 Cooling 282 249 282 249 -7- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations DPL Inc.'s earnings for the second quarter of 1996 were $0.35 per share, up $.01 from second quarter earnings a year ago. Year-to-date earnings were $0.98 per share, up from $0.94 per share for the same period in 1995. The West Central Ohio economy remained very strong in the second quarter with unemployment levels in the service area dropping below 4%, outpacing both the state and national economies. This performance, combined with more seasonable weather than last year, led to an increase in retail electric and total natural gas sales of 5% and 15%, respectively, over year-to-date 1995 levels. An analysis of the financial condition and results of operations for the second quarter and six months ended June 30, 1996 and 1995 is discussed below. Financial Condition - ------------------- Construction plans are subject to continuing review and are expected to be revised in light of changes in financial and economic conditions, load forecasts, legislative and regulatory developments and changing environmental standards, among other factors. DP&L's ability to complete its capital projects and the reliability of future service will be affected by its financial condition, the availability of external funds at reasonable cost and adequate and timely rate increases. As of June 30, 1996, DPL Inc.'s cash and temporary cash investment balance was $35.9 million. In addition, $203.6 million was invested in debt and equity financial assets. DP&L has available to it $97 million in short-term informal lines of credit. As of June 30, 1996, DP&L had no short-term debt outstanding. DPL Inc. and its subsidiaries have $200 million available through a Revolving Credit Agreement ("Credit Agreement"). As of June 30, 1996, DPL Inc. had no outstanding borrowings under this Credit Agreement. DP&L has authority from the Public Utilities Commission of Ohio ("PUCO") to issue short term debt up to $200 million with a maximum debt limit of $300 million including loans from DPL Inc. under the terms of the Credit Agreement. DP&L anticipates that it has sufficient capacity to issue First Mortgage Bonds to satisfy its requirements in connection with the financing of its construction and refinancing programs during the five year period 1996-2000. -8- Results of Operations - --------------------- Electric revenues increased by $10.7 million and $19.3 million, respectively, for the second quarter and six months ended June 30, 1996, over the corresponding periods in 1995. Residential customer revenues were up 12% for the second quarter and 10% year-to-date as a result of weather-related sales. Gas revenues increased $5.2 million and $10.5 million, respectively, from the second quarter and year-to-date last year. The variance reflects increased gas sales of 13% in the second quarter and 15% year-to-date over last year due to colder weather and increased business activity. Fuel and purchased power expense decreased $4.9 million and $7.5 million, respectively, for the second quarter and year-to-date. The variance is a result of lower sales to other utilities as well as a lower fuel cost recovery rate. Gas purchased for resale increased $1.8 million from the corresponding quarter in 1995 and $3.4 million from year-to-date last year primarily as a result of the increased sales. Operation and maintenance expense increased over last year by $12.6 million for the quarter and $17.2 million year-to-date due to higher insurance and claims expenses and planned maintenance measures undertaken in the second quarter in preparation for the upcoming summer cooling season. Depreciation and amortization expense increased $3.2 million from the previous year second quarter and $4.7 million year-to-date. This variance reflects increased depreciable assets and a second quarter adjustment to the depreciation reserve. General taxes increased $2.1 million over the first six months last year due to increased property taxes. Income taxes increased $3.2 million and $6.7 million, respectively, over the second quarter and year-to-date 1995 primarily due to higher pre-tax income. -9- Part II. Other Information --------------------------- Item 5. Other Information. Rate Regulation and Government Legislation - ------------------------------------------ On July 9, 1996, DP&L refiled its open-access transmission tariff with the Federal Energy Regulatory Commission ("FERC") in compliance with Order Nos. 888 and 889 issued by FERC on April 24, 1996. On February 15, 1996, the PUCO issued guidelines for interruptible service, including services that accommodate the attainment and delivery of replacement electricity during periods when the utility faces constraints on its own resources. On April 11, 1996, the PUCO issued an Entry on Rehearing ordering utilities to file interruptible electric service tariffs. On June 14, 1996, DP&L filed for approval of a non-firm electric service rate schedule and replacement power rate riders. Item 6. Exhibits and Reports on Form 8-K. (b) Reports on Form 8-K ------------------------ No reports on Form 8-K were filed by DPL Inc. during the quarter ended June 30, 1996. -10- 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. DPL INC. ------------------------ (Registrant) Date: August 14, 1996 /s/ Stephen F. Koziar --------------- --------------------- Stephen F. Koziar Group Vice President and Secretary Date: August 14, 1996 /s/ Thomas M. Jenkins --------------- --------------------- Thomas M. Jenkins Group Vice President and Treasurer (Principal Financial Officer) -11- EX-27 2 FINANCIAL DATA SCHEDULE
UT 1,000 6-MOS DEC-31-1996 JUN-30-1996 PER-BOOK 2220075 36220 368273 379870 283394 3287832 1060 650139 499248 1150447 0 22851 1040632 0 0 0 41400 0 0 0 1032502 3287832 649822 61964 459433 521397 128425 14828 143253 44144 99109 434 98675 65982 43514 186307 0.98 0.98
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