-----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, j2n1XN+cFprIiBrgQu96zDVgSj6/ZOSsBlDZ86fsOwfKhpJEB1yoh8MOcvvGtvni Cc8Knx7+KBNhaN1impkvgA== 0000081025-95-000009.txt : 19950814 0000081025-95-000009.hdr.sgml : 19950814 ACCESSION NUMBER: 0000081025-95-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUBLIC SERVICE CO OF NORTH CAROLINA INC CENTRAL INDEX KEY: 0000081025 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS DISTRIBUTION [4924] IRS NUMBER: 560233140 STATE OF INCORPORATION: NC FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-11429 FILM NUMBER: 95561935 BUSINESS ADDRESS: STREET 1: 400 COX RD STREET 2: PO BOX 1398 CITY: GASTONIA STATE: NC ZIP: 28053 BUSINESS PHONE: 7048646731 10-Q 1 FORM 10-Q FOR THE PERIOD ENDED 6-30-95 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 June 30, 1995 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 1-11429 PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED (Exact name of registrant as specified in its charter) NORTH CAROLINA 56-0233140 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 400 COX ROAD, P. O. BOX 1398 GASTONIA, NORTH CAROLINA 28053-1398 (Address of principal executive offices) (Zip Code) (704) 864-6731 (Registrant's telephone number, including area code) NONE (Former name, former address and former fiscal year, if changed since last report.) 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 latest practicable date. Number of shares of Common Stock, $1 par value, outstanding at July 31, 1995 . . . . . . . . . . . . . . . . 18,669,352 2 PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED ------------------------------------------------------ AND SUBSIDIARIES ---------------- PART I. FINANCIAL INFORMATION The condensed financial statements included herein have been prepared by the registrant 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, although the registrant believes that the disclosures herein are adequate to make the information presented not misleading. It is recommended that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the registrant's latest annual report on Form 10-K. 3 CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts)
Three Months Ended Nine Months Ended Twelve Months Ended June 30 June 30 June 30 ------------------ ------------------ ------------------- 1995 1994 1995 1994 1995 1994 -------- -------- -------- -------- -------- -------- Operating revenues $ 41,650 $ 48,171 $221,175 $242,847 $252,032 $273,331 Cost of gas 17,414 25,611 106,389 139,425 122,341 157,275 -------- -------- -------- -------- -------- -------- Gross margin 24,236 22,560 114,786 103,422 129,691 116,056 -------- -------- -------- -------- -------- -------- Operating expenses and taxes: Operating and maintenance 12,903 12,514 38,188 37,588 50,369 49,164 Provision for depreciation 4,581 3,642 13,513 11,264 17,447 14,910 General taxes 2,819 2,939 11,493 12,176 13,882 14,521 Income taxes 338 121 16,310 12,188 14,262 8,661 -------- -------- -------- -------- -------- -------- 20,641 19,216 79,504 73,216 95,960 87,256 -------- -------- -------- -------- -------- -------- Operating income 3,595 3,344 35,282 30,206 33,731 28,800 Other income 107 1,587 93 3,546 1,117 3,358 Interest deductions 3,097 3,262 9,604 10,211 12,641 13,703 -------- -------- -------- -------- -------- -------- Net income $ 605 $ 1,669 $ 25,771 $ 23,541 $ 22,207 $ 18,455 ======== ======== ======== ======== ======== ======== Average common shares outstanding 18,587 17,506 18,452 16,617 18,389 16,456 Earnings per share $.03 $.10 $1.40 $1.42 $1.21 $1.12 Cash dividends declared per share $.2125 $.205 $.6225 $.60 $.8275 $.7975
4 CONSOLIDATED BALANCE SHEETS (In thousands) ASSETS
Jun 30 Sep 30 Jun 30 1995 1994 1994 -------- -------- -------- Gas utility plant $554,959 $520,209 $502,728 Less - Accumulated depreciation 163,774 153,308 150,474 -------- -------- -------- 391,185 366,901 352,254 -------- -------- -------- Non-utility property, net 949 251 792 -------- -------- -------- Current assets: Cash and temporary investments 2,581 2,534 14,683 Restricted cash and temporary investments 4,128 12,731 12,585 Receivables, less allowance for doubtful accounts 12,760 16,649 16,064 Materials and supplies 5,842 6,131 6,103 Stored gas inventory 8,980 14,276 10,848 Deferred gas costs, net - 734 - Prepayments and other 2,882 2,572 2,690 -------- -------- -------- 37,173 55,627 62,973 -------- -------- -------- Deferred charges and other assets 6,199 5,160 5,425 -------- -------- -------- Total $435,506 $427,939 $421,444 ======== ======== ======== CAPITALIZATION AND LIABILITIES Capitalization: Common equity - Common stock, $1 par $ 18,603 $ 18,212 $ 18,093 Capital in excess of par value 105,346 100,201 98,783 Retained earnings 56,365 42,142 49,514 -------- -------- -------- 180,314 160,555 166,390 Long-term debt 109,140 113,680 121,180 -------- -------- -------- 289,454 274,235 287,570 -------- -------- -------- Current liabilities: Maturities of long-term debt 9,540 5,240 5,240 Accounts payable 13,219 15,656 15,642 Accrued taxes 7,896 5,787 9,908 Customer prepayments and deposits 4,855 5,570 3,204 Cash dividends and interest 5,526 4,973 5,420 Restricted supplier refunds 4,128 12,731 12,585 Deferred gas costs, net 1,298 - 1,962 Other 11,952 11,665 11,091 -------- -------- -------- 58,414 61,622 65,052 Interim bank loans 18,500 23,000 - -------- -------- -------- 76,914 84,622 65,052 -------- -------- -------- Accrued pension cost 12,957 15,532 15,029 Deferred investment tax credits 4,553 5,081 4,908 Deferred income taxes, net 51,628 48,469 48,885 -------- -------- -------- Total $435,506 $427,939 $421,444 ======== ======== ========
5 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (In thousands) Twelve Months Ended June 30 ------------------- 1995 1994 ------- ------- Balance beginning of period $49,514 $44,408 Add - Net income 22,207 18,455 Deduct - Common stock dividends and other 15,356 13,349 ------- ------- Balance end of period $56,365 $49,514 ======= ======= CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Nine Months Ended Twelve Months Ended June 30 June 30 ----------------- ------------------- 1995 1994 1995 1994 ------- ------- ------- ------- Cash Flows From Operating Activities: Net income $25,771 $23,541 $22,207 $18,455 Adjustments to reconcile net income to net cash provided by operating activities - Depreciation, depletion and other 16,055 14,086 20,821 18,691 Deferred income taxes, net 3,159 2,292 2,743 (1,269) Gain on sale of propane assets - (3,128) - (3,128) ------- ------- ------- ------- 44,985 36,791 45,771 32,749 Change in operating assets and liabilities: Receivables, net 2,638 (2,778) 1,894 (1,300) Inventories 5,586 2,053 2,129 (1,658) Accounts payable (2,437) (2,065) (2,423) (851) Accrued pension cost (2,575) 1,506 (2,073) 2,198 Other 2,665 10,224 (682) 11,532 ------- ------- ------- ------- 50,862 45,731 44,616 42,670 ------- ------- ------- ------- Cash Flows From Investing Activities: Construction expenditures (39,709) (27,113) (58,065) (42,865) Non-utility and other (1,520) (1,030) (1,298) (563) Proceeds from sale of propane assets - 12,800 - 12,800 ------- ------- ------- ------- (41,229) (15,343) (59,363) (30,628) ------- ------- ------- ------- Cash Flows From Financing Activities: Issuance of common stock through public offering, net of expenses - 23,406 - 23,406 Issuance of common stock through dividend reinvestment, stock purchase and stock option plans 5,412 5,710 7,000 7,309 Increase (decrease) in interim bank loans, net (4,500) (33,500) 18,500 (12,500) Retirement of long-term debt and common stock (296) (3,724) (7,871) (6,223) Cash dividends (10,202) (9,516) (14,984) (12,688) ------- ------- ------- ------- (9,586) (17,624) 2,645 (696) ------- ------- ------- ------- Net increase (decrease) in cash and temporary investments 47 12,764 (12,102) 11,346 Cash and temporary investments at beginning of period 2,534 1,919 14,683 3,337 ------- ------- ------- ------- Cash and temporary investments at end of period $ 2,581 $14,683 $ 2,581 $14,683 ======= ======= ======= ======= Cash paid during the period for: Interest (net of amount capitalized) $ 9,844 $11,815 $12,164 $13,253 Income taxes 10,669 5,681 13,915 6,912 6
NOTES TO FINANCIAL STATEMENTS 1. The accompanying unaudited consolidated financial statements and notes should be read in conjunction with the financial statements and notes included in PSNC's 1994 Annual Report. In the opinion of management, all adjustments necessary for a fair statement of the results of operations for the interim periods have been recorded. Certain amounts previously reported have been reclassified to conform with the current period's presentation. PSNC's business is seasonal in nature, therefore the financial results for any interim period are not necessarily indicative of those which may be expected for the annual period. 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION Changes in Results of Operations - -------------------------------- (Amounts in thousands except degree day and customer data) Three Months Ended June 30 ----------------------------------------- Increase 1995 1994 (Decrease) % -------- -------- --------- --- Gross margin $ 24,236 $ 22,560 $ 1,676 7 Less - Franchise taxes 1,321 1,528 (207) (14) -------- -------- --------- Net margin $ 22,915 $ 21,032 $ 1,883 9 ======== ======== ========= Total volume throughput (DT): Residential 2,522 2,546 (24) (1) Commercial/small industrial 1,982 1,982 - - Large commercial/industrial 7,193 7,003 190 3 -------- -------- --------- 11,697 11,531 166 1 ======== ======== ========= Raleigh/Durham area degree days: Actual 216 218 (2) (1) Normal 255 255 - - Percent of normal 85% 85% Weather normalization adjustment income (refund), net of franchise taxes $ 1,005 $ 922 $ 83 Customers at end of period: Residential 245,510 233,063 12,447 5 Commercial/small industrial 29,371 27,858 1,513 5 Large commercial/industrial 388 384 4 1 -------- -------- --------- 275,269 261,305 13,964 5 ======== ======== ========= Net margin for the three months ended June 30, 1995 increased $1,883,000 as compared to the same period last year. This increase in net margin is attributable to the items shown below (in thousands):
Commercial/ Large Small Commercial/ Residential Industrial Industrial Other Total ----------- ---------- ---------- ------ ------ Price variances*- General rate increase effective 10/94 $1,337 $ 187 $ (713) $ - $ 811 Cardinal rate increase effective 1/95 189 128 205 - 522 Volume variances, net 370 58 239 - 667 Other - - - (117) (117) ------ ------ ------ ------ ------ Total $1,896 $ 373 $ (269) $ (117) $1,883 ====== ====== ====== ====== ======
*Includes changes in sales mix. Positive volume variances occurred during the three-month period due to increases in all three customer bases, and to an increase in volumes delivered to certain large commercial/industrial customers due to their higher operating levels. For residential and commercial/small industrial customers, the operation of the weather normalization adjustment (WNA) mechanism generally offsets the volume variance related to the effect that weather has on throughput. The Cardinal Pipeline was placed into service on 8 MANAGEMENT'S DISCUSSION (Continued) December 31, 1994. A hearing was held on January 25, 1995, and new rates that increased annual revenues by approximately $3,000,000 became effective the following day. (Amounts in thousands except degree day data) Nine Months Ended June 30 ----------------------------------------- Increase 1995 1994 (Decrease) % -------- -------- -------- --- Gross margin $114,786 $103,422 $ 11,364 11 Less - Franchise taxes 7,104 7,798 (694) (9) -------- -------- --------- Net margin $107,682 $ 95,624 $ 12,058 13 ======== ======== ========= Total volume throughput (DT): Residential 16,529 17,780 (1,251) (7) Commercial/small industrial 10,471 11,081 (610) (6) Large commercial/industrial 22,608 21,040 1,568 7 -------- -------- --------- 49,608 49,901 (293) (1) ======== ======== ========= Raleigh/Durham area degree days: Actual 2,936 3,382 (446) (13) Normal 3,323 3,323 - - Percent of normal 88% 102% Weather normalization adjustment income (refund), net of franchise taxes $ 5,800 $ (138) $ 5,938 Net margin for the nine months ended June 30, 1995 increased $12,058,000 as compared to the same period last year. This increase in net margin is attributable to the items shown below (in thousands):
Commercial/ Large Small Commercial/ Residential Industrial Industrial Other Total ----------- ---------- ---------- ------- ------- Price variances*- General rate increase effective 10/94 $ 8,251 $1,720 $(1,557) $ (732) $ 7,682 Cardinal rate increase effective 1/95 574 327 355 - 1,256 Volume variances, net 1,705 323 1,367 - 3,395 Other - - - (275) (275) ------- ------ ------- ------- ------- Total $10,530 $2,370 $ 165 $(1,007) $12,058 ======= ====== ======= ======= ======= * Includes changes in sales mix.
Positive volume variances occurred during the nine-month period due to the previously mentioned increase in the customer bases and an increase in volumes delivered to certain large commercial/industrial customers. These positive volume variances further show the impact of the WNA mechanism for PSNC's residential and commercial/small industrial customers, who experienced a decline in throughput during the period. The nine-month period also reflects a $732,000 refund ordered by the North Carolina Utilities Commission (NCUC) in the October 7, 1994 rate case order that related to income tax credits taken in prior periods. 9 MANAGEMENT'S DISCUSSION (Continued) (Amounts in thousands except degree day data) Twelve Months Ended June 30 ----------------------------------------- Increase 1995 1994 (Decrease) % -------- -------- --------- --- Gross margin $129,691 $116,056 $ 13,635 12 Less - Franchise taxes 8,072 8,753 (681) (8) -------- -------- --------- Net margin $121,619 $107,303 $ 14,316 13 ======== ======== ========= Total volume throughput (DT): Residential 17,531 18,708 (1,177) (6) Commercial/small industrial 11,839 12,367 (528) (4) Large commercial/industrial 29,225 27,060 2,165 8 -------- -------- --------- 58,595 58,135 460 1 ======== ======== ========= Raleigh/Durham area degree days: Actual 2,943 3,392 (449) (13) Normal 3,341 3,341 - - Percent of normal 88% 102% Weather normalization adjustment income (refund), net of franchise taxes $ 5,800 $ (138) $ 5,938 Net margin for the twelve months ended June 30, 1995 increased $14,316,000 as compared to the same period last year. This increase in net margin is attributable to the items shown below (in thousands):
Commercial/ Large Small Commercial/ Residential Industrial Industrial Other Total ----------- ---------- ---------- ------ ------- Price variances*- General rate increase effective 10/94 $ 8,251 $1,720 $(1,659) $ (732) $ 7,580 Cardinal rate increase effective 1/95 574 327 355 1,256 Volume variances, net 1,394 486 1,772 - 3,652 Other - - - 1,828 1,828 ------- ------ ------- ------ ------- Total $10,219 $2,533 $ 468 $1,096 $14,316 ======= ====== ======= ====== ======= * Includes changes in sales mix.
Positive volume variances occurred during the twelve-month period due to the previously mentioned increase in the customer bases and an increase in volumes delivered to certain large commercial/industrial customers. These positive volume variances again show the impact of the WNA mechanism for PSNC's residential and commercial/small industrial customers. The twelve-month period also reflects the previously mentioned refund ordered by the NCUC, and includes a $1,225,000 increase in margin due to the write-off of Southern Expansion costs that occurred in July 1993 (see Note 2 to the financial statements in the 1994 Annual Report). Operating and maintenance expenses for the three, nine and twelve months ended June 30, 1995 increased 3%, 2% and 2%, respectively, as compared to the same periods last year. These increases reflect higher employee educational expenses and outside consulting services expenses related to information systems and employee benefits. Total payroll decreased in comparison to the same periods last year due to the sale of PSNC's propane operations in June 1994. However, salary expenses included in operating and maintenance increased due to payroll reallocations implemented during November 1994 to standardize labor distributions. The increases for all three periods were partially offset by the reclassification of certain sales compensation expenses to merchandising and jobbing. The nine- and twelve-month periods additionally reflect employee severance expenses related to departmental 10 MANAGEMENT'S DISCUSSION (Continued) reorganizations and to fees related to listing on the New York Stock Exchange. The increases for these two periods were partially offset by the $750,000 reversal of expenses related to the investigation of former manufactured gas plant (MGP) sites, originally recorded in fiscal 1992 (see Note 8 to the financial statements in the 1994 Annual Report). Also offsetting the increases were declines in insurance expenses for the nine and twelve months of $630,000 and $250,000, respectively. These related to health and life insurance refunds received due to favorable experience realized, along with the transfer of a large number of employees to a less-costly health maintenance organization (HMO) provider. Depreciation expense increased for the three, nine and twelve months ended June 30, 1995 due to utility plant additions and to higher depreciation rates approved in the October 1994 general rate case order. The increase in income taxes for the nine and twelve months ended June 30, 1995 is due in part to income tax credits recorded in both of the prior year periods. Other income for the three, nine and twelve months ended June 30, 1995 decreased $1,480,000, $3,453,000 and $2,241,000, respectively, due mainly to income recognized from the June 1994 sale of PSNC's propane subsidiary assets and exploration and development assets. The after-tax income from the sale of these assets was approximately $1,650,000. In addition, for the nine- and twelve-month periods ending June 30, 1995, other income decreased due to the absence of operating income from the propane subsidiary. These decreases in subsidiary operations for all periods were partially offset by increased agency fee revenues from PSNC's gas marketing subsidiary. Income from merchandising operations decreased due to the previously mentioned reclassification of certain sales compensation expenses from operating and maintenance expenses for all three periods presented. Other income during the twelve-month period was positively impacted by an increase in pipeline capacity sales. Interest deductions for the three, nine and twelve months ended June 30, 1995 decreased 5%, 6% and 8%, respectively. These decreases are primarily due to lower interest expense on declining balances in long-term debt outstanding. For the nine- and twelve-month periods, the decrease reflects interest capitalized related to the construction of the Cardinal Pipeline project. The change in earnings per share for all three periods reflect an increase of 6%, 11%, and 12% in the average number of common shares outstanding as compared to the same periods last year. These increases are primarily due to the May 1994 sale of 1,725,000 new shares of $1 par common stock. Changes in Financial Condition - ------------------------------ The capital expansion program, through the construction of lines, services, systems, facilities and the purchase of equipment, is designed to help PSNC meet the growing demand for its product. PSNC's fiscal 1995 construction budget is approximately $54,000,000, compared to actual construction expenditures for fiscal 1994 of $45,469,000. The construction program is regularly reviewed by management and is dependent upon PSNC's continuing ability to generate adequate funds internally and to sell new issues of debt and equity securities on acceptable terms. Construction expenditures during the nine and twelve months ended June 30, 1995 were $39,709,000 and $58,065,000, respectively, as compared to $27,113,000 and $42,865,000 for the same periods a year ago. These increases are mainly due to construction of the Cardinal Pipeline project. During the nine and twelve months ended June 30, 1995, construction expenditures related to the project were $7,290,000 and $15,055,000, respectively. 11 MANAGEMENT'S DISCUSSION (Continued) PSNC generally finances its operations with internally generated funds, supplemented with bank lines of credit to satisfy seasonal requirements. PSNC also borrows under its bank lines of credit to finance portions of its construction expenditures pending refinancing through the issuance of equity or long-term debt at a later date depending upon prevailing market conditions. PSNC has committed lines of credit with eight commercial banks which vary monthly depending upon seasonal requirements. For the twelve-month period beginning April 1, 1995, lines of credit with these banks range from a minimum of $22,000,000 to a winter-period maximum of $72,000,000. PSNC also has uncommitted annual lines of credit with three of these banks totaling $21,000,000. Lines of credit are evaluated periodically by management and renegotiated to accommodate anticipated short-term financing needs. Management believes these lines are currently adequate to finance a portion of construction expenditures, stored gas inventories and other corporate needs. PSNC sold 1,725,000 new shares of $1 par common stock through an underwritten public offering during May 1994. The net proceeds of $23,406,000 were used to repay all outstanding short-term indebtedness, to redeem the outstanding $3,098,000 of First Mortgage Bonds, 9 7/8% Series H, due 1995, and to help finance a portion of fiscal 1994's construction expenditures. Cash and temporary investments at June 30, 1995 decreased $12,102,000 from June 30, 1994. The balance at June 30, 1994 included approximately $12,800,000 of proceeds from the sale of PSNC's propane assets during June 1994 that were used to help finance a portion of fiscal 1994's construction expenditures. At June 30, 1995, restricted cash and temporary investments were $4,128,000, a decrease from $12,731,000 at September 30, 1994. This net decrease was due to the deposit of $11,531,000 into the expansion fund in the Office of the State Treasurer during December 1994. This fund was created by an order of the NCUC, dated June 3, 1993, for the purpose of constructing natural gas lines into unserved areas of PSNC's service territory that otherwise would not be economically feasible to serve. Since December 1994, PSNC has received supplier refunds totaling $2,624,000 that will be held for deposit into the expansion fund at a later date, along with interest earned. Net accounts receivable decreased $3,304,000 as compared to June 30, 1994. This decrease was due primarily to decreased revenues billed in June 1995 as compared to June 1994 reflecting a shift from natural gas purchased and then sold to large commercial/industrial customers to transportation only. Transportation customers are billed directly by the supplier for the commodity cost of natural gas transported to them. The decrease in accounts receivable also reflects a decrease in the wholesale cost of gas. Net deferred gas costs fluctuate in response to the operation of PSNC's Rider D rate mechanism. This mechanism allows PSNC to recover margin losses on negotiated sales to large commercial and industrial customers with alternate fuel capability. It also allows PSNC to recover from customers all prudently incurred gas costs. On a monthly basis, any difference in amounts paid and collected for these costs is recorded for subsequent refund to or collection from PSNC's customers. Deferred gas costs at June 30, 1995 and June 30, 1994 represent net overcollections from customers of $1,298,000 and $1,962,000, respectively, while deferred gas costs at September 30, 1994 denote undercollections of $734,000. Both the nine and twelve months ended June 30, 1995 were affected by an $8,000,000 refund credited to customers' bills during February 1995 for overcollections of commodity gas costs. For the nine-month period, this refund was partially offset by overcollections for demand and storage gas costs. The variance for the twelve-month period 12 MANAGEMENT'S DISCUSSION (Continued) additionally reflects a decline in deferred net income related to PSNC's capacity release transactions that was partially offset by a net increase in overcollections for commodity gas costs. The decrease in accrued pension cost at June 30, 1995 is due to the March 1995 pension contribution payment of $2,388,000 for the 1993-1994 pension plan year. 13 EXHIBIT 11 PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED COMPUTATION OF EARNINGS PER SHARE (In thousands, except per share amounts)
Three Months Ended Nine Months Ended Twelve Months Ended June 30 June 30 June 30 ------------------ ------------------ ------------------- 1995 1994 1995 1994 1995 1994 -------- -------- -------- -------- -------- -------- Net income $ 605 $ 1,669 $ 25,771 $ 23,541 $22,207 $ 18,455 -------- ------- -------- -------- -------- -------- Average common shares outstanding 18,587 17,506 18,452 16,617 18,389 16,456 Additional dilutive effect of outstanding options (as determined by the application of the treasury stock method) 50 53 50 83 50 90 -------- -------- -------- -------- ------- -------- Average common shares outstanding as adjusted 18,637 17,559 18,502 16,700 18,439 16,546 -------- -------- -------- -------- -------- -------- Earnings per share, as adjusted $ .03 $ .10 $1.39 $1.41 $1.20 $1.12 ===== ===== ===== ===== ===== ===== This calculation is submitted in accordance with Regulation S-K item 601(b)(11) although not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because it results in dilution of less than 3%.
14 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 - ------------------------------------------------------------ None. Item 5. Other Information - -------------------------- None. Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- (a) Part I Exhibits: 11 - Statement re: computation of per share earnings. 27 - Financial Data Schedule. (b) Reports on Form 8-K: There were no reports on Form 8-K filed during the three months ended June 30, 1995. 15 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. PUBLIC SERVICE COMPANY OF NORTH CAROLINA, INCORPORATED --------------------------------------- (Registrant) Date 8-11-95 Charles E. Zeigler, Jr. ------- --------------------------------------- Charles E. Zeigler, Jr. Chairman, President and Chief Executive Officer Date 8-11-95 Robert D. Voigt ------- --------------------------------------- Robert D. Voigt Senior Vice President - Corporate Development and Chief Financial Officer EX-27 2 FDS FOR THE INTERIM PERIOD ENDED 6-30-95
UT This schedule contains summary financial information extracted from the consolidated financial statements for the nine months ended June 30, 1995. 1000 9-MOS SEP-30-1995 JUN-30-1995 PER-BOOK 391,185 949 37,173 6,199 0 435,506 18,603 105,346 56,365 180,314 0 0 109,140 18,500 0 0 9,540 0 0 0 118,012 435,506 221,175 16,310 63,194 79,504 35,282 93 35,375 9,604 25,771 0 25,771 10,202 0 50,862 1.40 1.39 This item is not required to be presented in the interim financial statements.
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