-----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, EQ2+VEMU8bs5Mw45ClB553nnc9RFcAWgMaVu8ZpB7OXER3+yywfG6ELxjUJdAotX 5KH8US7fqrqOD9JB1eymMw== 0000912057-96-009072.txt : 19960514 0000912057-96-009072.hdr.sgml : 19960514 ACCESSION NUMBER: 0000912057-96-009072 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOMINGUEZ SERVICES CORP CENTRAL INDEX KEY: 0000860673 STANDARD INDUSTRIAL CLASSIFICATION: WATER SUPPLY [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: 96560880 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 -------------------- FOR QUARTER ENDED MARCH 31, 1996 ON 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) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (310) 834-2625 ------------------------------ - -------------------------------------------------------------------------------- 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 THREE MONTHS 3 ENDED MARCH 31, 1996 AND 1995 (b) CONSOLIDATED INCOME STATEMENT FOR THE TWELVE MONTHS 4 ENDED MARCH 31, 1996 AND 1995 (c) CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1996 AND 5 CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1995 (d) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE 6 MONTHS ENDED MARCH 31, 1996 AND 1995 (e) CAPITALIZATION AND STOCKHOLDERS' EQUITY AS OF 7 MARCH 31, 1996 (f) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 8-9 AND RESULTS OF OPERATION PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS 10 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 10 SIGNATURE 10 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, 1996 MARCH 31, 1995 -------------- -------------- OPERATING REVENUE $5,225,268 $5,021,542 COSTS AND EXPENSES OPERATING EXPENSES 4,692,437 4,468,194 INTEREST EXPENSES 172,024 176,823 OTHER EXPENSES, NET 5,960 2,497 TOTAL COSTS AND EXPENSES 4,870,421 $4,647,514 INCOME FROM OPERATIONS 354,847 374,028 OTHER INCOME 96,974 14,371 INCOME BEFORE TAXES ON INCOME 451,821 388,399 PROVISION FOR TAXES ON INCOME 181,352 155,896 NET INCOME 270,469 232,503 LESS PREFERRED DIVIDENDS 1,219 1,219 NET INCOME APPLICABLE TO COMMON SHARES $269,250 $231,284 EARNINGS PER COMMON SHARE $0.27 $0.23 DIVIDENDS PER COMMON SHARE $0.31 $0.29 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 MARCH 31, 1996 MARCH 31, 1995 -------------- -------------- OPERATING REVENUE $25,690,049 $23,898,597 COSTS AND EXPENSES OPERATING EXPENSES 22,055,526 20,582,534 INTEREST EXPENSES 678,334 708,222 OTHER EXPENSES, NET 10,650 27,512 TOTAL COSTS AND EXPENSES 22,744,510 21,318,268 INCOME FROM OPERATIONS 2,945,539 2,580,329 OTHER INCOME 247,823 707,645 INCOME BEFORE TAXES ON INCOME 3,193,362 3,287,974 PROVISION FOR TAXES ON INCOME 1,202,888 1,345,793 NET INCOME 1,990,474 1,942,181 LESS PREFERRED DIVIDENDS 4,876 4,876 NET INCOME APPLICABLE TO COMMON SHARES $1,985,598 $1,937,305 EARNINGS PER COMMON SHARE $1.98 $1.93 DIVIDENDS PER COMMON SHARE $1.18 $1.115 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, 1996 DECEMBER 31, 1995 -------------- ----------------- ASSETS PLANT AND EQUIPMENT $57,135,596 $57,094,383 DEPRECIATION ALLOWANCE (20,709,083) (20,312,058) CONSTRUCTION WORK IN PROGRESS 1,219,996 291,478 ----------- ----------- NET UTILITY PLANT 37,646,509 37,073,803 NONUTILITY PROPERTY 138,646 149,138 CURRENT AND ACCRUED ASSETS 4,909,476 5,272,443 DEFERRED DEBITS 2,470,446 2,799,374 ----------- ----------- $45,165,077 $45,294,758 ----------- ----------- ----------- ----------- LIABILITIES CAPITAL STOCK: CLASS A PREFERRED - PAR VALUE $25 PER SHARE NO OUTSTANDING SHARES IN 1996 $--0-- $97,525 COMMON - PAR VALUE $1 PER SHARE OUTSTANDING 1,004,370 SHARES 1,004,370 1,004,370 SURPLUS: CAPITAL SURPLUS 2,508,467 2,512,379 EARNINGS RETAINED IN BUSINESS 11,337,808 11,379,913 ----------- ----------- TOTAL CAPITAL 14,850,645 14,994,187 ----------- ----------- LONG-TERM DEBT: FIRST MORTGAGE BONDS 6,023,000 6,023,000 OTHER NOTES 1,245,201 1,250,335 ----------- ----------- TOTAL LONG-TERM DEBT 7,268,201 7,273,335 ----------- ----------- CURRENT PORTION LONG-TERM DEBT 81,000 81,000 CURRENT AND ACCRUED LIABILITIES 4,518,113 4,819,070 DEFERRED TAXES 3,719,000 3,696,565 ADVANCES FOR CONSTRUCTION 5,650,713 5,440,080 CONTRIBUTION IN AID OF CONSTRUCTION 6,048,513 6,055,354 DEFERRED CREDITS 3,028,892 2,935,167 ----------- ----------- $45,165,077 $45,294,758 ----------- ----------- ----------- ----------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 5 (d) CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) FOR THE FOR THE QUARTER ENDING QUARTER ENDING MARCH 31, 1996 MARCH 31, 1995 -------------- -------------- CASH FLOW FROM OPERATING ACTIVITIES: NET INCOME $270,469 $232,503 ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATION ACTIVITIES: DEPRECIATION AND AMORTIZATION 354,063 371,723 DEFERRED INCOME TAX AND ITC 22,435 41,853 CHANGE IN ASSETS AND LIABILITIES: CUSTOMERS RECEIVABLE 336,631 427,690 OTHER RECEIVABLE 690,070 71,700 MATERIALS AND SUPPLIES 8,447 5,382 ACCOUNTS PAYABLE (590,658) (302,164) INCOME TAXES PAYABLE 238,210 (57,634) DEFERRED CREDITS 102,170 244,748 ALL OTHERS 49,732 208,357 ---------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 1,481,569 1,244,158 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: CAPITAL EXPENDITURES (973,643) (595,208) PURCHASE SUBSIDIARIES --0-- (10,001) ---------- ---------- NET CASH USED FOR INVESTING ACTIVITIES (973,643) (605,209) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES: PROCEEDS FROM CONTRIBUTIONS IN AID OF CONSTRUCTION 257,853 (36,483) REPAYMENT OF LONG TERM DEBT (5,134) 172,959 DIVIDENDS PAID (312,574) (292,478) STOCK REDEMPTION (78,225) --0-- ---------- ---------- NET CASH USED BY FINANCING ACTIVITIES (138,080) (156,002) ---------- ---------- NET INCREASE IN CASH 369,846 482,947 CASH AT BEGINNING OF YEAR 751,606 1,085,283 ---------- ---------- CASH AT END OF YEAR $1,121,452 $1,568,230 ---------- ---------- ---------- ---------- SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 6 (e) CAPITALIZATION AND STOCKHOLDERS' EQUITY (UNAUDITED)
AS OF MARCH 31, 1996 -------------- DEBT: LONG-TERM DEBT $7,349,201 CURRENT SINKING FUND REQUIREMENTS (81,000) ---------- TOTAL DEBT MATURING IN MORE THAN TWELVE MONTHS $7,268,201 ---------- ---------- DEFERRED CREDITS $3,028,892 ---------- ---------- STOCKHOLDER'S EQUITY: SHARES ISSUED OR OUTSTANDING AMOUNT ----------- ------ COMMON STOCK $1 PAR VALUE 1,004,370 $1,004,370 CAPITAL IN EXCESS OF PAR VALUE 2,508,467 RETAINED EARNINGS: BALANCE AT BEGINNING OF CURRENT FISCAL YEAR $11,379,913 NET INCOME 270,469 CASH DIVIDENDS: COMMON STOCK @ $0.31 $311,355 PREFERRED STOCK CLASS A @ $0.3125 1,219 (312,574) ----- --------- BALANCE AT END OF INTERIM PERIOD 11,337,808 ---------- TOTAL STOCKHOLDER'S EQUITY $14,850,645 ----------- -----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS. 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, 1996, earnings per share increased from $.23 to $.27 for the same period in 1995. Revenues for the three months ended March 31, 1996, were $5,225,268 and net income was $270,469, compared to revenues of $5,021,542 and net income of $232,503 for the same period last year. For the twelve months ended March 31, 1996, earnings per share increased from $1.93 to $1.98 for the same period in 1995. Revenues for the twelve months ended March 31, 1996, were $25,690,049 and net income was $1,990,474, compared to revenues of $23,898,597 and net income of $1,942,181 for the same period last year. The Company posted higher revenues and earnings despite a 2.3% decrease in water sales. Increased revenues are due in large measure to a rate increase authorized in 1995 by the California Public Utilities Commission (CPUC) to cover higher water costs. Higher earnings are primarily attributable to proceeds from brokering water rights leases. As part of the Company's strategic repositioning, Dominguez will sell the remaining assets of its non-utility subsidiary, Hydro-Metric Corporation. We expect to complete the transaction by the end of April with no material effect on the Company's financial statements. As of March 15, 1996, the Company redeemed all its outstanding Class A Preferred Shares. WATER QUALITY Due to recent publicity regarding methyltertiarybutylether (MTBE) found in water systems in Southern California, the Company sampled its groundwater supply and found no trace of this contaminant. The Company continues to test its water supply to ensure compliance with current and anticipated federal and state water quality standards. 8 WATER SUPPLY The water supply outlook is encouraging. Large amounts of rain and snow pack in northern California assure us of an adequate supply to meet South Bay customers' demands for the next two years. Although this year's runoff is slightly less than in the prior year, reservoirs are near capacity and snow pack in Northern California is still well above normal. MWD expects full deliveries from the State Water Project. Colorado River water will also be available. The Company continues to increase local well capacity in order to mitigate the effects of water shortages and future imported water rate increases. In the Kern River Valley and Antelope Valley, ground water levels indicate that these systems should have an adequate water supply for 1996. DIVIDEND INCREASE The Board of Directors has declared the Company's 133rd consecutive quarterly dividend at $.31 per share on common stock to be paid on June 15, 1996. 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: By: ------------------------------- -------------------------------- John S. Tootle CFO, Vice-President Finance 10 EX-27 2 EX-27 FDS
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDING MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1995 JAN-01-1996 MAR-31-1996 1,121,452 0 2,398,788 (263,861) 85,724 4,909,476 58,355,592 20,709,083 45,165,077 4,600,078 6,023,000 0 0 1,004,370 13,845,310 45,165,077 5,030,381 5,225,268 1,615,230 4,244,114 0 48,545 172,024 451,821 181,352 270,469 0 0 0 270,469 0.27 0.27
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