-----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, s7CIj9bod2H0kPng/XqzZndPZN1dLlgIkUlsK4TwNkSbiyttRFe41CrL4p93wE0G Pmv6yED2naNGCSRtHj16gw== 0000912057-95-003792.txt : 19950531 0000912057-95-003792.hdr.sgml : 19950531 ACCESSION NUMBER: 0000912057-95-003792 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOMINGUEZ SERVICES CORP CENTRAL INDEX KEY: 0000860673 STANDARD INDUSTRIAL CLASSIFICATION: 4941 IRS NUMBER: 330391161 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-18677 FILM NUMBER: 95539464 BUSINESS ADDRESS: STREET 1: 21718 S ALAMEDA STREET CITY: LONG BEACH STATE: CA ZIP: 90810 BUSINESS PHONE: 3108342625 MAIL ADDRESS: STREET 2: 21718 SOUTH ALAMEDA ST CITY: LONG BEACH STATE: CA ZIP: 90810 10-Q 1 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------- F O R M 1 0 - Q Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 -------------------- MARCH 31, 1995 For Quarter Ended. . . . . . . . . . . . . . . . . . Commission file No. 0-18677 DOMINGUEZ SERVICES CORPORATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Exact name of registrant as specified in its charter) CALIFORNIA 33-0391161 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (State of other jurisdiction (I.R.S. Employer incorporation or organization) Identification No.) 21718 SOUTH ALAMEDA STREET, LONG BEACH, CALIFORNIA 90810 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Address of principal executive offices) (Zip Code) (310) 834-2625 Registrant's telephone number, including area code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, and (2) has been subject to such filing requirements for the past 90 days. YES X . NO . ----- ----- (APPLICABLE ONLY TO CORPORATE ISSUERS): 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. Common stock (one class) - 1,004,370 DOMINGUEZ SERVICES CORPORATION INDEX ----- PAGE NO. PART I - FINANCIAL INFORMATION -------- Item 1. Financial Statements (a) Consolidated Income Statement for the 3 Three Months Ended March 31, 1995 and 1994 (b) Consolidated Income Statement for the 4 Twelve Months Ended March 31, 1995 and 1994 (c) Consolidated Balance Sheet as of 5 March 31, 1995 and Consolidated Balance Sheet as of December 31, 1994 (d) Consolidated Statements of Cash Flows 6 for the Three Months Ended March 31, 1995 and 1994 (e) Capitalization and Stockholders' Equity 7 as of March 31, 1995 (f) Notes to Consolidated Financial 8-9 Statements Item 2. Management's Discussion and Analysis of 10 Financial Condition and Results of Operation PART II - OTHER INFORMATION Item 1. Legal Proceedings 10 Item 6. Exhibits and Reports on Form 8-K 10 Signature 2 PART 1 - FINANCIAL INFORMATION Item 1. Financial Statements Company or group of companies for which report is filed: Dominguez Services Corporation, Dominguez Water Corporation, Antelope Valley Water Co., Kernville Domestic Water Co., Arden Water Co., Hydro-Metric Service Corporation. (a) Consolidated Income Statement (Unaudited) - Fiscal Quarter ending:
For the For the Quarter Ending Quarter Ending March 31, 1995 March 31, 1994 -------------- -------------- Operating revenue. . . . . . . . . . . . . . . $5,094,292 $4,839,543 Costs and expenses Operating expenses. . . . . . . . . . . . 4,544,395 4,299,114 Interest expense. . . . . . . . . . . . . 176,823 182,312 Other deductions, net . . . . . . . . . . 2,497 4,414 Total costs and expenses. . . . . . . . . 4,723,715 4,485,840 Income from operations . . . . . . . . . . . . 370,577 353,703 Other income . . . . . . . . . . . . . . . . 17,822 18,546 Income before taxes on income. . . . . . . . . 388,399 372,249 Provision for taxes on income. . . . . . . . . 155,896 149,400 Net income . . . . . . . . . . . . . . . . . . 232,503 222,849 Less preferred dividends. . . . . . . . . 1,219 1,219 Net income applicable to common shares. . . . . . . . . . . . . . . . . . . . $231,284 $221,630 Earnings per common share. . . . . . . . . . . $0.23 $0.22 Dividends per common share . . . . . . . . . . $0.290 $0.275 Average common shares outstanding. . . . . . . 1,004,370 1,004,370
See accompanying notes to Financial Statements. 3 (b) Consolidated Income Statement (Unaudited) - Twelve Months Ending:
For the Twelve For the Twelve Months Ending Months Ending Mar. 31, 1995 Mar. 31, 1994 ------------- ------------- Operating revenues . . . . . . . . . . . . . . $24,941,481 $22,344,596 Cost and expenses Operating expenses. . . . . . . . . . . 21,015,703 18,834,743 Interest expense. . . . . . . . . . . . 708,222 722,251 Other deductions,net. . . . . . . . . . 27,762 21,074 Total costs and expenses. . . . . . . . 21,751,687 19,578,068 Income from operations . . . . . . . . . . . . 3,189,794 2,766,528 Other income . . . . . . . . . . . . . . . . . 98,180 373,862 Income before taxes on income. . . . . . . . . 3,287,974 3,140,390 Provision for taxes on income. . . . . . . . . 1,345,793 1,193,830 Net income . . . . . . . . . . . . . . . . . . 1,942,181 1,946,560 Less preferred dividends. . . . . . . . 4,876 4,876 Net income applicable to common shares . . . . $1,937,305 $1,941,684 Earnings per common share. . . . . . . . . . . $1.93 $1.93 Dividends per common share . . . . . . . . . . $1.115 $1.070 Average common shares outstanding. . . . . . . 1,004,370 1,004,370
See accompanying notes to Financial Statements. 4 (c) Consolidated Balance Sheet (Unaudited)
As of As of March 31,1995 Dec. 31, 1994 ------------- ------------- ASSETS Plant and equipment . . . . . . . . . . $54,786,145 $54,787,402 Less allowance for depreciation . . . . 19,971,145 19,586,430 ----------- ----------- Net plant and investments . . . . . . . 34,815,000 35,200,972 Construction work in progress . . . . . 1,354,841 748,375 ----------- ----------- Net utility plant . . . . . . . . . . . 36,169,841 35,949,347 Non utility property. . . . . . . . . . 222,197 560,185 Current and accrued assets. . . . . . . 5,429,049 5,507,209 Deferred debits . . . . . . . . . . . . 4,113,531 3,980,480 ----------- ----------- $45,934,618 $45,997,221 ----------- ----------- ----------- ----------- LIABILITIES Capital stock Class A preferred - par value $25 per share Outstanding 3,901 shares in 1995 . . . . . $97,525 $97,525 Common - par value $1 per share Outstanding 1,004,370 shares in 1995 . . . 1,004,370 1,004,370 Surplus: Capital surplus . . . . . . . . . . . . 2,490,591 2,490,591 Earnings retained in business. . . . . . . 10,537,367 10,597,342 ----------- ----------- Total capital . . . . . . . . . . . . . 14,129,853 14,189,828 ----------- ----------- Long-term debt: First mortgage bonds. . . . . . . . . . 6,083,000 6,083,000 Other notes . . . . . . . . . . . . . . 1,415,740 1,242,781 ----------- ----------- Total long-term debt. . . . . . . . . . 7,498,740 7,325,781 ----------- ----------- Current portion long-term debt . . . . . . 319,000 319,000 Current and accrued liabilities. . . . . . 4,640,085 4,776,055 Deferred taxes . . . . . . . . . . . . . . 2,936,493 2,894,640 Advances for construction. . . . . . . . . 5,330,364 5,334,557 Contributions in aid of construction. . . . . . . . . . . . . . 6,208,900 6,263,605 Deferred credits . . . . . . . . . . . . . 4,871,183 4,893,755 ----------- ----------- $45,934,618 $45,997,221 ----------- ----------- ----------- -----------
See accompanying notes to Financial Statements. 5 (d) Consolidated Statements of Cash Flow (Unaudited)
For the For the 3 Months Ended 3 Months Ended March 31, 1995 March 31, 1994 -------------- -------------- Cash Flow from Operating Activities: Net Income. . . . . . . . . . . . . . . . $232,503 $222,849 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and Amortization . . . . . . 371,723 305,248 Deferred Income Tax and ITC . . . . . . . 41,853 41,853 Change in Assets and Liabilities: Customers Receivables . . . . . . . . . . 427,690 137,048 Other Receivables . . . . . . . . . . . . 71,700 (101,777) Materials and Supplies. . . . . . . . . . 5,382 8,682 Accounts Payable. . . . . . . . . . . . . (302,164) (29,008) Income Taxes Payable. . . . . . . . . . . (57,634) (92,837) Deferred Credits. . . . . . . . . . . . . 244,748 127,049 All Other . . . . . . . . . . . . . . . . 208,357 140,253 ---------- ---------- Net Cash Provided by Operating Activities. . . 1,244,158 759,360 ---------- ---------- Cash Flows from Investing Activities: Capital Expenditures. . . . . . . . . . . (595,208) (985,137) Purchase Split Mountain / Mountain Shadows (10,001) - ---------- ---------- Net Cash Used for Investing Activities . . . . (605,209) (985,137) ---------- ---------- Cash Flows from Financing Activities: Proceeds fr. Contributions in Aid of Construction. . . . . . . . . . . . . . . (36,483) 72,580 Repayment of Long-Term Debt . . . . . . . 172,959 (7,997) Dividends Paid. . . . . . . . . . . . . . (292,478) (277,421) ---------- ---------- Net Cash Used by Financing Activities. . . . . (156,002) (212,838) ---------- ---------- Net (Decrease) Increases in Cash . . . . . . . 482,947 (438,615) Cash at Beginning of Year. . . . . . . . . . . 1,085,283 1,910,767 ---------- ---------- Cash at End of Period. . . . . . . . . . . . . $1,568,230 $1,472,152 ---------- ---------- ---------- ----------
See accompanying notes to Financial Statements 6 (e) Capitalization and Stockholders' Equity (Unaudited)
As of March 31, 1995 -------------- Amount ------ Debt: Long-term debt. . . . . . . . . . . . . . . . . . . . . . $7,817,740 Current sinking fund requirements. . . . . . . . . . . 319,000 ---------- Total debt maturing in more than twelve months. . . . . . $7,498,740 ---------- ---------- Deferred credits . . . . . . . . . . . . . . . . . . . . . . $3,532,713
Stockholders' Equity:
Shares Issued Or Outstanding Amount -------------- ------- Non-convertible cumulative preferred stock Class A, 5%, $25 par value. . . . . . . . . 3,901 $97,525 Common stock $1 par value. . . . . . . . . . . 1,004,370 1,004,370 Capital in excess of par value . . . . . . . . 2,490,591 Retained earnings: Balance at beginning of current Fiscal Year 10,597,342 Net Income. . . . . . . . . . . . . . . . . 232,503 Cash dividends Common stock @ $0.290 . . . . . . . . . 291,259 Preferred stock Class A @ $0.3125 . . . 1,219 (292,478) --------- ----------- Balance at end of interim period . . . . . . . 10,537,367 ----------- Total Stockholders' Equity . . . . . . . . . . $14,129,853 ----------- -----------
See accompanying notes to Financial Statement 7 (f) Notes to Consolidated Financial Statements (Unaudited) 1. In the opinion of management, information furnished herein reflects adjustments necessary for a fair presentation of the financial position and results of operations for the interim periods. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation. For the three months ended March 31, 1995, earnings per share increased from $.22 to $.23 for the same period in 1994. On a twelve month basis, earnings remained the same at $1.93 per share. Revenues for the three months ended March 31, 1995, were $5,094,292 and net income was $232,503, compared to revenue of $4,839,543 and net income of $222,849 for the same period last year. Earnings are up slightly over last year due to the income from recent rate increases in the utility subsidiaries and higher industrial water sales. Although, first quarter results are positive, they are not necessarily trendsetters. WATER QUALITY In response to heightened public awareness and concern, Dominguez and other water providers nationwide have increased their vigilance testing for (cryptosporidium, the contaminant that caused widespread illness in Milwaukee in 1993). Dominguez is among many water suppliers who have joined the Environmental Protection Agency (EPA) in the Partnership for Safe Water, a group committed to ensuring the most protective water systems possible. IT IS UNLIKELY THAT DOMINGUEZ SYSTEMS WOULD CONTAIN CRYPTOSPORIDIUM. Groundwater supplies are typically free of it due to natural soil filtration. Our only surface water is imported by the Metropolitan Water District who tests, treats, and filters extensively before delivering to our pipelines. However, to ensure safety for our customers, Dominguez has tested for Cryptosporidium and found none. As always, Dominguez will continue to stay ahead of testing requirements. With concerns such as these, we are pleased to continue our association with Dr. Herb Conrad, owner of Ecological Systems Corporation. WATER SUPPLY In prior reports, we have mentioned the construction in El Segundo of the water reclamation plant by the West Basin Municipal Water District (WBMWD), which has assessed our customers for part of its 8 construction costs. The plant is now operational and reclaimed water is being served to WBMWD customers in their northern area of the South Bay. The availability of reclaimed water in the WBMWD service area should mitigate the impact of future droughts on the Company. Dominguez continues to negotiate with major customers, whose participation is critical to ensure that pipelines will be extended into our service area by 1997. Dominguez continues to increase local well capacity in order to mitigate the effects of water shortages. Thanks to new wells in Kern River Valley and Antelope Valley, these systems should have an adequate supply. Large amounts of rain and snowpack in northern California ensure us of adequate supplies to meet South Bay customers demands. The water supply outlook is as follows: South Bay's imported water supplier, Metropolitan Water District (MWD), will be able to meet demand for at least the next two years. Although reservoirs are near capacity, snow pack in Northern California is still well above normal and MWD expects full deliveries from the State Water Project. Colorado River water will also be available. REGULATORY The cost of water will take a significant jump this year. The CPUC's usual practice is to allow us to pass these costs on to our customers. Permission to pass through increased costs is not automatic, and our staff is currently preparing to file for such authorization. We anticipate that we will be as successful, as in the prior years, to protect our earnings. On a state level, the legislature is holding hearings about the future of the California Public Utilities Commission (CPUC). One bill has been submitted that would remove water companies from the jurisdiction of the CPUC and place them under the authority of the county. This is being fought by your Company and the industry. DIVIDEND INCREASE The Board of Directors has declared the Company's 128th consecutive quarterly dividend at $.29 per share on common stock to be paid on June 15, 1995. 9 PART II - OTHER INFORMATION Item 1. LEGAL PROCEEDINGS - No legal proceedings have been filed against the registrant that have not been previously reported. Item 6. OTHER An 8-K report was not required for either. 1. Material unusual charges or credits to income during the most recently completed fiscal quarter, or 2. A change in independent accountants during the period. The information furnished reflects all adjustments which, in the opinion of management, are necessary to the fair statement of the results of the interim periods. DOMINGUEZ SERVICES CORPORATION Date: May 12, 1995 By: /s/ JOHN S. TOOTLE ---------------------------------- -------------------------------- John S. Tootle Vice-President Finance 10 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDING MARCH 31, 1995. 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 1,568,230 0 2,156,519 (203,455) 95,682 1,812,073 56,363,183 19,971,145 45,934,618 4,959,085 0 1,004,370 0 97,525 13,027,958 45,934,618 4,815,525 5,094,292 2,692,452 4,112,232 0 37,386 176,823 388,399 155,896 232,503 0 0 0 232,503 0.23 0.23
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